Preparing Corporate By-Laws with Expert Attorneys

In establishing a corporation, the owners or incorporators must first address various important things - one of which is drafting by-laws. This set of administrative rules will define or set forth how shareholders, directors and officers should operate. Failure to abide by these regulations will hold them personally responsible. Hence, it is quite important that they fully understand what are stated in the corporation’s by-laws.

By-laws preparation is being conducted by the shareholders and directors to make sure that every owner will have their voice heard in this initial process of forming a corporation. Yet, they may also amend these laws by means of vote, depending on the particular state Corporations Code and the terms stated on their articles of incorporation.

In general, corporate by-laws contain law provisions, voting procedures, terms in conducting shareholder meetings and other matters such as the company’s structure and operations. However, the federal and state laws do not compel business to file it with the office of State Secretary. But then again, all corporations are required to have one.

Corporate by-laws may compose of five to twenty pages depending on the size and complexity of the corporate structure.

Following are some important information that corporate by-laws should include:

• Information that lay down the corporation’s identity

o Name

o Address

o Main area of business

• The number of individuals that will be authorized to take the position of directors and corporate officials

• Terms regarding the type and number of shares and stocks the company will deal out

• Method, place and frequency of shareholder meetings

• Manner of keeping the corporate records

• Stipulations in revising the by-laws and articles or incorporation

As a common practice, by-laws are being kept in the corporate records. Nonetheless, these are being shown to possible business partners and investors.

On the other hand, due to its overwhelming importance in a corporation’s establishment, it is equally vital that the directors and shareholder hire an expert assistance. With this, they may look for a qualified corporate business attorney to assist them in formulating a good set of by-laws.

In finding a credible attorney, a corporation should make sure that they are hiring one with proper understanding and skills in drafting corporate by-laws. They should look on his records and educational achievements. Appointing the services of an attorney without experience may just create intricacies and misunderstanding among the shareholders in the future.

Thus, the shareholders must only hire business attorneys who belong in prestigious law firms with solid experience in providing legal assistance to businesses. It will also be helpful that they get the referral of credible organizations such as the state bar association where they belong.