When forming a corporation, it is essential that you have all your documentation in order. You want to create a solid foundation on which your business will operate.
One step you will want to take is creating bylaws. Bylaws are an operating guide for your business. They outline a range of important topics, and the board of directors will adopt them to make them a pivotal part of your company.
Legal points about bylaws
When creating bylaws, it is important to note what may not be allowable under the law. Louisana’s law is very general. It only says that you can include any provision that helps with the management and regulation of the business and is not otherwise outlawed by law or the articles of incorporation. In addition, the bylaws cannot ban or restrict the ability of the board of directors to add, amend or repeal provisions.
Examples of provisions in bylaws
While you can and should design your bylaws to meet the needs of your business, there are a few standard provisions that companies typically include. Most bylaws will state the name and purpose of the business. This provision helps to ensure everyone is on the same page about the goals of the company.
Other provisions may include membership rules and rights, officers and decision-making authority, meeting rules and requirements, including special meetings, and the role of the board of directors.
In general, bylaws should outline all operating procedures for the governance of the company. They should leave no room for questions or confusion.