PREVFinLit1 - IG (80p Protected Preview)

COPYRIGHTED MATERIAL

LET'S PRACTICE

Bylaws set out the rights, duties and responsibilities of the

shareholders, directors and officers. They are sort of like rules and guidelines as to how the company will run. All corporate officers keep a copy of the bylaws in their office to refer to in the event of a procedural question.

You’re in luck! Bylaws have already been drafted for your team. These are very abbreviated versions of bylaws. Actual bylaws can be hundreds of pages long. Read them, fill in the blanks, and sign.

BYLAWS OF

[Corporations Name]

__________________________________________________________________________________

Note the underlined text. Your team will decide these matters at their first board meeting.

ARTICLE I

SECTION 1. PRINCIPAL EXECUTIVE OFFICE The location of the principal executive office of the corporation shall be determined by the board of directors. ARTICLE II. SHAREHOLDERS’ MEETINGS SECTION 1. PLACE OF MEETINGS All meetings of the shareholders shall be held at the principal executive office at ____________________________________________________________________________. SECTION 2. NOTICES OF MEETINGS Notices of annual meetings shall be given in writing to shareholders by the secretary personally or by first-class mail. SECTION 3. WAIVER OF NOTICE The transactions of any meeting of shareholders are as valid if a quorum is present. SECTION 4. QUORUM AND SHAREHOLDER ACTION A majority of the shares entitled to vote shall constitute a quorum at a meeting of shareholders. ARTICLE III. DIRECTORS SECTION 1. POWERS The business and affairs of the corporation shall be managed and all corporate powers shall be exercised by, or under the direction of, the board of directors. SECTION 2. ELECTION AND TENURE OF OFFICE The directors shall be elected at the annual meeting of the shareholders and hold office until the next annual meeting. SECTION 3. REMOVAL Any or all of the directors may be removed without cause if such removal is approved by a majority of the outstanding shares entitled to vote. Sets out the basic duties and responsibilities of corporate directors. A quorum is the number of voting members who must be present for business to be legally transacted. team's discretion PRODUCT PREVIEW

Lesson 12 | Business Blast 232

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