Bylaws of Corporations
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Purpose of Bylaws
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There are generally 2 main types of corporations: (i) public and (ii) private. Both types of corporations have bylaws. But the differences in bylaws between public and private corporations, as well as the size, function, management style, and laws that apply to corporations can dramatically change the bylaws. With that said, corporations in similar industries (e.g. auto industry, computer industry, etc.) tend to have somewhat similar bylaws as other similar corporations.

The purpose of bylaws is to direct the inner-workings of a corporation. In other words, the bylaws set forth the day-to-day functions of a corporation. But make sure that you don’t confuse bylaws with laws. Non-sovereign bodies like corporations pass bylaws, while sovereignties pass actual laws. A sovereign is a supreme lawmaking body like a country or state (e.g. a country like the United States or a state like Texas). Non-sovereign bodies, like corporations, get their power to pass rules from the sovereign in which they operate. For example, a corporation that forms bylaws in Florida must follow federal law from the United States because it’s a sovereign nation, and the corporation must also follow Florida state law because it is a sovereign state.

Next, we’ll go over how bylaws differ from the Articles of Incorporation.