What are Corporate Bylaws?
Corporate bylaws are the rules established by the board of directors that govern how a newly formed corporation will operate. The bylaws form the corporate structure of a company, and put in place a process for directors, managing officers, and shareholders to make decisions and exchange information.
The bylaws are different and separate from a shareholder agreement — which is recommended for any corporation with more than one owner. Bylaws govern the procedural mechanics of the company, while the Shareholder Agreement governs the relationship among the shareholders and the corporation.