Many businesspeople confuse an organisation’s bylaws with its Articles of Incorporation.
Articles of Incorporation generally provide information such as the names of the company’s Board of Directors; the number of shares the company can issue, if applicable; and the location of the company.
Bylaws cover topics such as how the Board of Directors and/or officers are elected, how meetings are conducted, and the types and duties of officers while the Articles of Incorporation state the basic outline of the company but they do not go into detail about the company’s operations or structure, which is covered in the company’s bylaws.
Remember each set of bylaws will be specific to each company, but the basic components of bylaws are as follows:
- An Organization’s Name, Purpose and Office(s) Location
- Board of Directors
- Conflict of Interest
- Amending Bylaws
- Liability and Indemnity
- Exit Strategies
Check our next post on the Importance of the ByLaws.
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