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Bylaws are laws passed by municipal councils and regional district boards to exercise their statutory authority. Bylaws may be used for a variety of different purposes, including establishing meeting procedures, regulating services, prohibiting an activity, or requiring certain actions.
Most towns have bylaws to cover things like: Business licensing. Parking. Noise. Local utility fees. Animal control. Smoking in public. Construction. Heritage buildings.
Policies are known as by-laws when their scope is regulated by government. Organizations, as a requirement of legal incorporation in most jurisdictions, are required to establish by-laws in respect to specific matters.
Bylaws should provide specific authority of the board to adopt policies, identify provisions for adoption and the vote required for adoption or amendment. Policies reflect the tenets of the board on which current and future decisions are made.
10 steps for writing bylaws for an association Research. Form a committee. Create the structure. Outline your organization's key roles and responsibilities. Establish your meeting rules. Define your membership. Address finances. Outline the amendment process.
Corporate bylaws specify the number of directors, their qualifications and duties, their time and place of meeting, and more. A violation of the bylaws can lead to the internal discipline of board members or even shareholder lawsuits. In cases of directorial malfeasance, even criminal prosecution is possible.
By creating bylaws, you're helping to: Ensure everyone understands and operates under the same rules. Provide transparency in how the business is run. Resolve disputes, both internally and in a court of law.
The Internal Revenue Code 501(c) (3) requires that any tax-exempt organization report changes in bylaws and other governing documents to the IRS every year using IRS Form 990. This is best used for minor changes.