The Bylaws are in the document that contains all the rules that provide for the internal functioning of a Company, the rights and obligations of the shareholders and the work of the administrative board. Define bylaws
They must be based on the social regulations that govern the country where the company originates, legal advice is important and the agreements are written down, especially everything pertinent to the partners’ commitments.
The statutes are a contract , for which the law allows to establish agreements between the partners, to regulate the relations in the company and not to breach the agreements such as:
- Non-competition treaties.
- Dismissal of partners.
- Limitations for not delivering the shares .
- Separation rights.
- Acquisition options by sale of the shares.
- Arrangements to carry out the right to vote in shareholders’ meetings. Define bylaws
Generally, due to their extensive experience, notaries public offer to advise on the composition of the statutes that commercial or civil companies must carry out, for which it is essential that they read and understand the importance and their commitment in the contract.
When writing the Bylaws , the following should be considered:
- The purpose of the company: That is, to adequately define the main activity and its purpose.
- Legal Representatives: Who will be the proxies and will carry out the agreements on behalf of the company. Define bylaws
- Management of the company: It must have a general director and an administrative council.
- Changes: They happen for various reasons such as disagreements, illness, death of a partner, etc.
There are several types of statutes according to their purpose, in which they can be distinguished:
- From a company: they are made to give correct fulfillment of a company.
- Of territorial order: they are the legal agreement between the state and the community, they delimit the territorial jurisdiction.
- That regulate a sector of society: there are the rules that workers and employers must comply with.
Examples of Bylaws
- The constitution document of every company that begins its foundation, must contain its bylaws since it is a fundamental requirement.
- The statutes may protect rules that are considered favorable, always with respect for the legality in use and the principles that constitute society. Define bylaws
- They are a constitutive pact between the shareholders that is made in writing and contains the rules to control the relationships and obligations of its members. Define bylaws