{"id":41293,"date":"2026-01-04T05:56:08","date_gmt":"2026-01-04T05:56:08","guid":{"rendered":"https:\/\/msadvisory.com\/?p=41293"},"modified":"2026-04-20T11:34:35","modified_gmt":"2026-04-20T11:34:35","slug":"what-are-corporate-bylaws","status":"publish","type":"post","link":"https:\/\/msadvisory.com\/what-are-corporate-bylaws\/","title":{"rendered":"What Are Company Bylaws?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"41293\" class=\"elementor elementor-41293\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ac15491 e-flex e-con-boxed e-con e-parent\" data-id=\"ac15491\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1e4bae0 key-takeaways elementor-widget elementor-widget-text-editor\" data-id=\"1e4bae0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h3>Key Takeaways<\/h3><ul><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Bylaws are the internal rules for a corporation\u2019s governance.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">These bylaws are required by law in many states and countries.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Bylaws describe how corporations are organized and managed and give power to elected directors.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">They\u2019re private and don\u2019t need to be submitted to government agencies.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d78d869 elementor-widget elementor-widget-text-editor\" data-id=\"d78d869\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Company or corporate bylaws are a key element of corporate governance. Here we explain how they work and when you should implement them.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f498c59 elementor-widget elementor-widget-text-editor\" data-id=\"f498c59\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span style=\"font-weight: 400\">What are Bylaws?<\/span><\/h2><p><span style=\"font-weight: 400\">Corporate bylaws are <\/span><a href=\"https:\/\/www.dmlp.org\/legal-guide\/corporate-bylaws\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">the internal rules for the governance<\/span><\/a><span style=\"font-weight: 400\"> of an incorporated company. These rules typically lay out the composition of the company\u2019s board of directors and officers, how they\u2019re elected, when and where shareholder meetings are held, rules for meetings, voting entitlements of shares, accounting methods, and other important details. While many jurisdictions, including over 30 states in the US, require bylaws, these are never considered public documents. Instead, they are privately owned by the company and do not need to be filed with any government agency.<\/span><\/p><p><span style=\"font-weight: 400\">Bylaws are essential for the good governance of any company. They help to clarify roles and responsibilities, resolve disputes between directors, create protocols for running effective meetings, and keep accounting transparent. Bylaws let everyone involved know who has which powers, how those powers can be attained through elections, and any limits on the terms of directors, which also limits their powers over time. Thus, they create checks and balances within the company to help protect the interests of all involved in its operation.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5d99fc1 elementor-position-left elementor-vertical-align-middle elementor-position-top speak-expert-new elementor-widget elementor-widget-image-box\" data-id=\"5d99fc1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image-box.default\">\n\t\t\t\t\t<div class=\"elementor-image-box-wrapper\"><figure class=\"elementor-image-box-img\"><a href=\"https:\/\/msadvisory.com\/contact\/\" tabindex=\"-1\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/msadvisory.com\/wp-content\/uploads\/2024\/03\/shanghai-china.jpeg\" class=\"attachment-full size-full wp-image-21671\" alt=\"Shanghai China\" srcset=\"https:\/\/msadvisory.com\/wp-content\/uploads\/2024\/03\/shanghai-china.jpeg 1024w, https:\/\/msadvisory.com\/wp-content\/uploads\/2024\/03\/shanghai-china-300x169.jpeg 300w, https:\/\/msadvisory.com\/wp-content\/uploads\/2024\/03\/shanghai-china-768x432.jpeg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><div class=\"elementor-image-box-content\"><div class=\"elementor-image-box-title\"><a href=\"https:\/\/msadvisory.com\/contact\/\">Corporate Governance Documents in China<\/a><\/div><p class=\"elementor-image-box-description\">Setting up or restructuring a company in China? MSA helps align governance documents with PRC Company Law requirements.\n<span>Message &nbsp;\u2192<\/span><\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8795cd0 elementor-widget elementor-widget-text-editor\" data-id=\"8795cd0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span style=\"font-weight: 400\">Key Components of Bylaws<\/span><\/h2><p><span style=\"font-weight: 400\">The most common sections to include in corporate bylaws include:<\/span><\/p><ul><li style=\"font-weight: 400\"><b>Basic company information:<\/b><span style=\"font-weight: 400\"> The <a href=\"https:\/\/msadvisory.com\/china-name-registration\/\" data-wpil-monitor-id=\"21\">company\u2019s name<\/a> and address should be identified, as well as its structure as a public or private enterprise.<\/span><\/li><\/ul><ul><li style=\"font-weight: 400\"><b>Statement of purpose:<\/b><span style=\"font-weight: 400\"> The company\u2019s purpose should be clearly stated to give direction to all its actions. This statement can include specific objectives that will define the company&#8217;s operations.<\/span><\/li><\/ul><ul><li style=\"font-weight: 400\"><b>The board of directors:<\/b><span style=\"font-weight: 400\"> The bylaws should describe the composition of the board, including specific roles and their <a href=\"https:\/\/msadvisory.com\/directors-duties\/\">associated duties<\/a>. They should also explain how and when board members can be elected and any limits to their terms. The procedure to replace board members should be included, as should rules for when, where, and how the board will meet.<\/span><\/li><\/ul><ul><li style=\"font-weight: 400\"><b>Management and officers:<\/b><span style=\"font-weight: 400\"> The company\u2019s management structure should be clearly defined, as should the description of the various offices involved, their roles, and powers. It should also be made clear how these officers can be appointed by the board and how they must report to it.<\/span><\/li><\/ul><ul><li style=\"font-weight: 400\"><b>Shareholder meetings:<\/b><span style=\"font-weight: 400\"> Part of good corporate governance is involving shareholders in decision-making. This normally comes in the form of an annual meeting in which shareholders can vote to elect the board of directors and other important issues. The bylaws should describe when and where these meetings will take place, as well as the procedural rules for these meetings. Quorum protocols should also be established to make it clear how many shareholders\u2019 votes it will take to elect board members.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bdd4faa elementor-widget elementor-widget-text-editor\" data-id=\"bdd4faa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Corporate Bylaws vs Articles of Association (China)<\/strong><\/p><table><thead><tr><th>Governance Area<\/th><th>Corporate Bylaws (Common Law)<\/th><th>Articles of Association (China)<\/th><\/tr><\/thead><tbody><tr><td>Legal nature<\/td><td>Internal governance document<\/td><td>Statutory governance document under PRC Company Law<\/td><\/tr><tr><td>Filing requirement<\/td><td>Not filed with authorities<\/td><td>Filed with the market regulation authority (SAMR)<\/td><\/tr><tr><td>Board structure<\/td><td>Defined internally by the company<\/td><td>Defined by Company Law and Articles of Association<\/td><\/tr><tr><td>Shareholder meetings<\/td><td>Governed by bylaws<\/td><td>Governed by Articles of Association<\/td><\/tr><tr><td>Amendment process<\/td><td>Shareholder or board resolution<\/td><td>Shareholder resolution plus formal registration<\/td><\/tr><tr><td>Public access<\/td><td>Private document<\/td><td>Partially public through registration filings<\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-602b856 elementor-widget elementor-widget-text-editor\" data-id=\"602b856\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span style=\"font-weight: 400\">Process of Drafting and Adopting Bylaws<\/span><\/h2><p><span style=\"font-weight: 400\">Bylaws are usually drafted through the actions of a company\u2019s founders and original owners. After its articles of incorporation are filed, a company will need to hold an organizational meeting. In this, the articles are ratified, the board of directors is elected, shares are issued, and the corporate bylaws are adopted. If, for any reason, the bylaws are not adopted, they may need to be amended and then adopted by vote at a later date.<\/span><\/p><p><span style=\"font-weight: 400\">Companies\u2019 bylaws are often created with the help of legal teams. While this is not necessary since they are internal documents, it may help to ensure that the bylaws are clear, comprehensive, and enforceable. Often, corporations are controlled by statutes enforced by the jurisdictions in which they\u2019re incorporated. A corporation\u2019s bylaws will likely include these statutory rules even in their original wordings. They can never include bylaws that might contradict these statutory rules. In the case of optional or flexible rules, or those not included in statutes, each corporation may write its own rules. These are normally based on standard examples from books, other corporations, or even templates and are only slightly changed to adapt them to the company\u2019s specific needs.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-91a18f8 elementor-widget elementor-widget-text-editor\" data-id=\"91a18f8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span style=\"font-weight: 400\">Importance of Regularly Updating Bylaws<\/span><\/h2><p><span style=\"font-weight: 400\">Bylaws must include methods for amending and updating individual rules. Changes can be made as long as they follow the rules laid out in the bylaws and don\u2019t contradict legal statutes or the company\u2019s articles of incorporation. Bylaws are often changed to ensure compliance with changing laws or to reflect organizational changes within the company.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0332a7f elementor-widget elementor-widget-text-editor\" data-id=\"0332a7f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><span style=\"font-weight: 400\">Corporate Bylaws for Good Governance<\/span><\/h2><p><span style=\"font-weight: 400\">Bylaws are internal rules for the governance of corporations. Whether or not they\u2019re mandated by law, they\u2019re still highly important and very useful. They give companies direction, structure, and rules to follow so that directors and officers are required to act in the best interests of their shareholders.\u00a0<\/span><\/p><p>For expert advice on your corporate bylaws, <a href=\"https:\/\/msadvisory.com\/contact\/\">get in touch<\/a> with MSA&#8217;s incorporation experts.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cef39d4 elementor-widget elementor-widget-text-editor\" data-id=\"cef39d4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Company bylaws in China formalize governance, director roles, shareholder rights, and dispute resolution\u2014requirements that vary significantly between wholly foreign-owned enterprises, joint ventures, and domestic companies with different regulatory obligations. Generic bylaws often miss industry-specific mandates or fail to allocate authority appropriately to decision-makers. MSA Asia drafts bylaws tailored to your entity type and operational structure. <a href=\"https:\/\/msadvisory.com\/contact\/\">Talk to our team<\/a> on <a href=\"https:\/\/msadvisory.com\/service\/corporate-services\/\">China corporate services<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8be3781 e-flex e-con-boxed e-con e-parent\" data-id=\"8be3781\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-cc40d76 align-at-right uael-faq-box-layout-yes elementor-widget elementor-widget-uael-faq\" data-id=\"cc40d76\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"uael-faq.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\n\t\t\t<div id='uael-faq-wrapper-214' class=\"uael-faq-wrapper\">\n\t\t\t\t<div class=\"uael-faq-container uael-faq-layout-accordion\" data-layout=\"accordion\" >\n\t\t\t\t\t\t\t\t\t\t\t\t<div id=\"uael-accordion-4e204cd\" class=\"uael-faq-accordion\" role=\"tablist\">\n\t\t\t\t\t\t\t\t<div class= \"uael-accordion-title\" aria-expanded=\"false\" role=\"tab\">\n\t\t\t\t\t\t\t\t\t<span class=\"uael-accordion-icon uael-accordion-icon-right\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"uael-accordion-icon-closed\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"14\" height=\"14\" viewBox=\"0 0 14 14\" fill=\"none\"><path d=\"M6 6V0H8V6H14V8H8V14H6V8H0V6H6Z\" fill=\"#2453ff\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"uael-accordion-icon-opened\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"14\" height=\"2\" viewBox=\"0 0 14 2\" fill=\"none\"><path d=\"M0 0V2H14V0H0Z\" fill=\"#2453ff\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"uael-question-4e204cd uael-question-span\" tabindex=\"0\" id=\"uael-faq-1-69f1a0ec814df\">How do bylaws differ from articles of incorporation?<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div class=\"uael-accordion-content\" role=\"tabpanel\">\n\t\t\t\t\t\t\t\t\t<span>\n\t\t\t\t\t\t\t\t\t<span><p><span style=\"font-weight: 400\">A company\u2019s articles of incorporation are a lot less complex than bylaws. They normally include only basic information about the company including its location, industry, and its share structure. These articles are filed with the appropriate government agency to create a corporation. Bylaws, on the other hand, are much more extensive rules that describe the governance of the corporation. Unlike the articles of incorporation, these bylaws can also be amended over time to reflect the changing needs of the company. Corporate bylaws are normally adopted at an organizational meeting after the articles of incorporation have been filed.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div id=\"uael-accordion-71c8c6c\" class=\"uael-faq-accordion\" role=\"tablist\">\n\t\t\t\t\t\t\t\t<div class= \"uael-accordion-title\" aria-expanded=\"false\" role=\"tab\">\n\t\t\t\t\t\t\t\t\t<span class=\"uael-accordion-icon uael-accordion-icon-right\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"uael-accordion-icon-closed\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"14\" height=\"14\" viewBox=\"0 0 14 14\" fill=\"none\"><path d=\"M6 6V0H8V6H14V8H8V14H6V8H0V6H6Z\" fill=\"#2453ff\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"uael-accordion-icon-opened\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"14\" height=\"2\" viewBox=\"0 0 14 2\" fill=\"none\"><path d=\"M0 0V2H14V0H0Z\" fill=\"#2453ff\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"uael-question-71c8c6c uael-question-span\" tabindex=\"0\" id=\"uael-faq-2-69f1a0ec81853\">What happens if a corporation doesn't have bylaws?<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div class=\"uael-accordion-content\" role=\"tabpanel\">\n\t\t\t\t\t\t\t\t\t<span>\n\t\t\t\t\t\t\t\t\t<span><p><span style=\"font-weight: 400\">In some jurisdictions, including 31 states in the US, all corporations must have bylaws. If they don\u2019t, they can face penalties or even have their registration revoked. In others, however, bylaws are not mandated by law. However, courts may see a lack of bylaws as one indication that a company is acting as an extension of the owners(s) and may rule that this company is simply an alter ego, piercing the corporate veil and potentially making the owner(s) liable for the company\u2019s debts. Without bylaws, corporations are likely to be poorly governed and may suffer a lack of clear direction and organization.<\/span><\/p><\/span>\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Bylaws are the internal rules for a corporation\u2019s governance. These bylaws are required by law in many states and countries. Bylaws describe how corporations are organized and managed and give power to elected directors. They\u2019re private and don\u2019t need to be submitted to government agencies. Company or corporate bylaws are a key element [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"iawp_total_views":12,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-41293","post","type-post","status-publish","format-standard","hentry","category-corporate-entities"],"acf":[],"_links":{"self":[{"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/posts\/41293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/comments?post=41293"}],"version-history":[{"count":6,"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/posts\/41293\/revisions"}],"predecessor-version":[{"id":47280,"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/posts\/41293\/revisions\/47280"}],"wp:attachment":[{"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/media?parent=41293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/categories?post=41293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/msadvisory.com\/wp-json\/wp\/v2\/tags?post=41293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}