The corporate bylaws are equivalent to a partnership's partnership agreement or
an LLC's operating agreement. Corporate bylaws govern the way the shareholders and officers conduct the business affairs of a corporation. The custom corporate bylaws we draft for you governs things like:
- The rights, duties, and obligations of the shareholders and officers;
- How often the shareholders of the corporation will have meetings;
- The number of shareholders required to call for a meeting;
- The quorum of shareholders needed to transact business at meetings;
- How shareholders will vote for directors;
- How shareholders can remove one or more directors;
- The duties of each officer;
- How disputes among shareholders will be handled;
- Rules for how shareholders can transfer their ownership insterest;
- Whether shareholders will have preemptive rights;
- How many shareholders it takes to amend the articles of incorporation; and
- General matters concerning dissolution of the corporation, etc.
Why Do You need Corporate Bylaws?
There are three main reasons why you need to have Corporate Bylaws on file:
- Govern how owners of the corporation interact with each other with regard to the business of the corporation; the conduct of its affairs; and the rights, duties and power of the shareholders and officers
- Many banks require a set of valid corporate bylaws before they will permit your corporation to open a business banking account.
- To avoid piercing the corporate veil in situations where the corporation is sued