A company’s by-laws are arguably the most important documents to draft during the formation of a new business. They can be amended throughout the life of a company and should always be subject to attorney review. Most states require by-laws (including New Jersey and New York) and they should be created even if they are not state mandated. However, having vague or incomplete by-laws can create substantial headaches for a company down the road.
The by-laws are the rules for self-governance of the company. They can outline a company’s structure and establish the rights and duties of a company’s officers, owners, and employees. It is also recommended to include the rules for the company’s committees, meetings, and conflicts of interest for the officers of the business. The process for amending the by-laws in the future should also be included in the first version of a company’s by-laws. For corporations they can describe when and where the directors’ and shareholders’ meetings take place and what the voting requirements are, amongst other things. Typically a corporation’s by-laws are approved at the first meeting of the board of directors.
If you need to create by-laws for your business you can contact Stone Law at 732-444-6303 or leave us a message on our website. The process for creating by-laws can is offered at a flat-fee rate to make the process more streamline for your business.