During the initial stages of forming a corporation, there are various legal decisions that will have to be made that will impact the future operations of the Louisiana company. In addition to establishing procedures, hiring practices and more, it is essential to also create bylaws. These are laws that will dictate operational procedures and other standards for certain aspects of how the corporation will operate.
Details of effective bylaws
Bylaws are not simply a list of rules that managers, leadership and employees will follow. These are foundational guidelines that have the potential to impact the future trajectory of the business, even impacting its long-term success. Thoughtful and effective bylaws are key, and they should typically cover the following matters:
- Number of corporate operators and directors
- Identifying information for the corporation
- Procedures for shareholder and director meetings
- Number and type of shares and stock classes the corporation will issue
- Procedure for corporate record-keeping
- Procedures for amending bylaws and articles of incorporation
The creation of bylaws is typically the responsibility of the person or the group of people who created the company and started the incorporation process.
Guidance is critical
The creation of bylaws can be a complex process, and a Louisiana corporation will benefit from the guidance of an experienced business transaction attorney. An assessment of the long-term goals of the corporation will lead to a greater chance of bylaws that will be sustainable well into the future. Careful consideration during the creation of bylaws can make a significant impact on the success of the company going forward.