This document provides bylaws for a statutory close corporation. The bylaws set forth the voting rights and responsibilities of the shareholders, directors and officers of the corporation. The bylaws also set forth the mechanisms for how the corporation will be run and the corporate formalities. This document contains both standard clauses as well as opportunities for customization to ensure that the understandings of the parties are properly set forth.
This document provides bylaws for a statutory close corporation. The bylaws set forth the voting rights and responsibilities of the shareholders, directors and officers of the corporation. The bylaws also set forth the mechanisms for how the corporation will be run and the corporate formalities. This document contains both standard clauses as well as opportunities for customization to ensure that the understandings of the parties are properly set forth. BYLAWS OF ___________ [Instruction: Insert Name of Closely Held Corporation] A ___________ [Instruction: Insert State] CORPORATION ARTICLE I OFFICES 1. Principal Office. The principal office of ___________ [Instruction: Insert Name of Corporation] (the “Corporation”), shall be located in the State of ___________ [Instruction: Insert State], County of ___________ [Instruction: Insert County], City of ___________ [Instruction: Insert City]. The Corporation’s board of directors (the “Board”) is hereby granted full power and authority to relocate said principal office, provided that the new location is provided in amended Bylaws. 2. Other Offices. The Corporation may have other offices, within or without the State of ___________ [Instruction: Insert State], as the Corporation’s Board may designate or as the business of the Corporation may require. ARTICLE II SHAREHOLDERS 1. Place of Meetings. All meetings of shareholders of the Corporation (“Shareholders”) shall be held at the principal office of the Corporation or at any other place within or without the State of ___________ [Instruction: Insert State] that may be designated either by the Board or by the written consent of all Shareholders entitled to vote at said meeting. 2. Notice of Meetings. Written or electronic notice of any meeting of the Shareholders shall state the place, date and hour of the meeting and the purpose or purposes for which the meeting is called. Said notice shall be delivered not less than ten (10) days nor more than sixty (60) days before the date of the meeting. The notice should also indicate that it is being issued by, or at the direction of, the person calling the meeting. The provisions of this paragraph are subordinate to any statutory provisions that may require a different procedure 3. Annual Meetings. The annual meeting of the Shareholders will be held on the [Instruction: Choose One: first // second // third // fourth] ___________ [Instruction: Insert Day of the Week] of ___________ [Instruction: Insert Month] each year, at ___________ [Instruction: Insert Time] [Instruction: Choose One: a.m // p.m.], provided that should the day fixed for the annual meeting fall on a legal holiday, the meeting will be held on the next succeeding business day, at which the Shareholders shall elect the Board, and transact such other business as may properly be brought before the meeting. 4. Special Meetings. Special meetings of the Shareholders, for any purpose, may be called by the President or by the Board. A special meeting must be called by the President if requested by the holders of not less than ___________ percent (___%) [Instruction: Insert Percentage] of the shares of the Corporation entitled to vote at the meeting. The provisions of this paragraph are subordinate to any statutory provisions which may require a different procedure. The business transacted at any special meeting of Shareholders shall be limited to the purposes stated in the notice. 5. Proxies. At all meetings of Shareholders, a Shareholder may vote in person or by proxy executed in writing by the Shareholder or by his authorized attorney-in-fact. A proxy must be filed with the Secretary of the Corporation before or at the time of the meeting. Any proxy that is duly executed shall not be revoked and shall continue in full force and effect until: (a) an instrument revokes said proxy; (b) the person who executed the proxy attends the meeting and votes in person; or (c) written notice of a death or incapacity of the maker of such proxy is received by the Corporation before the vote pursuant thereto is counted; provided that no such proxy shall be valid after the expiration of eleven (11) months from the date of its execution, unless the person executing it specifies therein the length of time for which such proxy is to continue in force. 6. Quorum. The presence, in person or by proxy, of a majority of the shares entitled to vote shall constitute a quorum at a meeting of Shareholders. The Shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough Shareholders to leave less than a quorum if any action taken (other than adjournment) is approved by at least a majority of the shares required to constitute a quorum. 7. Voting. If a quorum is present, the affirmative vote of a majority of the votes cast in favor of or against an action shall be the act of the Shareholders, unless the vote of a greater or lesser number of shares of stock is required by law or the certificate of incorporation. A. Except as provided in Article II, paragraph 7(Error! Reference source not found.B) hereof, each outstanding share of stock having voting power shall be entitled to one vote on each matter submitted to a vote at a meeting of Shareholders. B. At all elections of Directors of the Board, every Shareholder entitled to vote at the election has the right to vote the number of shares owned by the Shareholder for as many people as there are Directors to be elected and for whose election the Shareholder has a right to vote, or to cumulate votes by giving one candidate as many votes as the number of Directors to be elected multiplied by the number of shares will equal, or by distributing that number of votes among any number of candidates. 8. Action without Meeting. Whenever Shareholders are required or permitted to take any action by vote, such action may be taken without a meeting on written consent, setting forth the action so taken, signed by the Shareholders of all outstanding shares entitled to vote thereon or, if the certificate of incorporation so permits, signed by the Shareholders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those Shareholders who have not consented in writing. ARTICLE III DIRECTORS 1. Powers. Subject to the limitations set forth in ___________ [Instruction: Insert State Corporation Code] (the “Code”) as to action required to be authorized or approved by the Shareholders, the business and affairs of the Corporation shall be managed and all corporate powers shall be exercised by and under the direction of the Board. 2. Number, Qualifications, Tenure. The number of Directors shall be ___________ (___) [Instruction: Insert Number of Directors]. Directors shall be at least eighteen (18) years of age and need not be residents of the State of ___________ [Instruction: Insert State] nor Shareholders of the Corporation. The Directors, other than the first Board, shall be elected at the annual meeting of the Shareholders, except as hereinafter provided, and each Director elected shall serve until the next succeeding annual meeting and until his successor shall have been elected and qualified. The first Board shall hold office until the first annual meeting of Shareholders. 3. Removal. Any individual Director or the entire Board may be removed, with or without cause, at any time by the vote of the Shareholders at a special meeting called for that purpose. 4. Vacancy. Any vacancy in the Board may be filled by the affirmative vote of a majority of the remaining Directors. A Director elected to fill a vacancy will be elected for the unexpired term of his predecessor in office. Any directorship to be filled by reason of an increase in the number of Directors may be filled by election by the Board for a term of office continuing only until the next election of Directors by the Shareholders. 5. Place of Meetings. All meetings of the Board, regular or special, shall be held at the principal office of the Corporation or at any other place within or without the State of ___________ [Instruction: Insert State] that may be designated either by the Board. 6. Regular Meetings. A regular meeting of the Board will be held without any notice other than this Bylaw immediately after, and at the same place as, the annual meeting of Shareholders. The Board may fix, by resolution, the time and place, either within or without the State of ___________ [Instruction: Insert State], of additional regular meetings without any notice other than said resolution. 7. Special Meetings. Special meetings of the Board may be called by or at the request of the President or any two (2) Directors. The person(s) calling said special meeting of the Board shall fix the time and place of said special meeting of the Board, and provide at least ___________ (___) days [Instruction: Insert Number of Days] written notice to each Director, either personally, by mail, facsimile or email correspondence. 8. Notice of Meeting. Any Director may waive notice of any meeting. The attendance of a Director at a meeting will constitute a waiver of notice of said meeting, unless said Director attends for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. 9. Quorum. Except as otherwise provided herein, a majority of the authorized number of Directors constitutes a quorum of the Board. Members of the Board may participate in a meeting of the Board by means of teleconference or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting. 10. Act of the Board. Except as otherwise provided in the Articles, in these Bylaws, or by law, if quorum is present, every act or decision done or made by a majority of the Directors present at a duly held meeting shall be an act of the Board. 11. Action without Meeting. Any action required or permitted to be taken at a meeting of the Directors may be taken without a meeting if a written consent to the adoption of a resolution authorizing the action is signed by all of the Directors entitled to vote with respect to the subject matter thereof. ARTICLE IV OFFICERS 1. Officers. The officers of the Corporation (“Officers”) shall be elected or appointed by the Board and shall be a President, a Vice-President, a Secretary and a Treasurer. Other Officers and Assistant Officers may be elected or appointed by the Board. Any two or more offices may be held by the same person, except the offices of President and Secretary. 2. Term of Office and Compensation. The term of office and salary of each of the Officers and the manner and time of the payment of such salaries shall be fixed and determined by the Board and may be altered by the Board, in the Board’s sole discretion. 3. Removal and Vacancy. The Officers of the Corporation shall hold office until their successors are chosen and qualify. Any Officer elected or appointed by the Board may be removed at any time by the affirmative vote of a majority of the Board. Any vacancy occurring in any office of the Corporation shall be filled by the Board. 4. President. The President is the principal executive officer of the Corporation and, subject to the control of the Board, will supervise and control all of the business and affairs of the Corporation. The President will preside at all meetings of the Shareholders. The President may sign, with the Secretary or any other Officer of the Corporation authorized by the Board, certificates for shares of the Corporation as well as deeds, mortgages, bonds, contracts, or other instruments that the Board has authorized to be executed. The President may not sign these documents if such execution has been expressly delegated by the Board or by these Bylaws to some other Officer or agent of the Corporation, or where the law of the State of ___________ [Instruction: Insert State] requires the documents to be executed by others. In general, the President will perform all duties incident to the office of President and all other duties as may be prescribed by the Board. 5. Vice-President. In case of the absence, disability, or death of the President, the Vice- President shall perform all the duties of the President; and when so acting, shall have all the powers of and be subject to all the restrictions upon the President. The Vice-President shall have such other powers and perform such other duties as from time to time may be prescribed by the Board or these Bylaws. 6. Secretary. The Secretary shall record or cause to be recorded, and shall keep or cause to be kept, at the principal office of the Corporation a book of minutes of actions taken at all meetings of Directors and Shareholders, with the time and place of holding, whether regular or special, and, if special, how authorized, the notice thereof given, the names of those present at Directors’ meetings, the number of shares present or represented at Shareholders’ meetings, and the proceedings thereof. The Secretary shall keep, or cause to be kept, at the principal office, a share register, or a duplicate share register, showing the names of the Shareholders and their addresses, the number and classes of shares held by each, the number and date of certificates issued for the same, and the number and date of cancellation of every certificate surrendered for cancellation. The Secretary shall give, or cause to be given, notice of all the meetings of the Shareholders and of the Board required by the Code, the Articles, or these Bylaws. The Secretary shall keep the seal of the Corporation in safe custody, and shall have such other powers and perform such other duties as may be prescribed by the Board or these Bylaws. 7. Treasurer. The Treasurer shall be the chief financial officer of the Corporation and shall keep and maintain, or cause to be kept and maintained, adequate and correct accounts of the properties, business transactions, and assets and liabilities of the Corporation. The books of account shall at all reasonable times be open to inspection by any Director. The Treasurer shall deposit all moneys and other valuables in the name and to the credit of the Corporation with such depositaries as may be designated by the Board. The Treasurer shall disburse the funds of the Corporation as may be ordered by the Board, shall render to the President and Directors, whenever they request it, an account of all transactions and of the financial condition of the Corporation, and shall have such other powers and perform such other duties as may be prescribed by the Board, the President, or these Bylaws. ARTICLE V ISSUANCE AND TRANSFER OF SHARES 1. Certificates for Shares. Certificates for shares of stock of the Corporation shall be in the form required by law and approved by the Board. Every certificate for shares issued by the Corporation must be signed by the President or a Vice-President and the Secretary. 2. Replacement of Certificates. No new certificates shall be issued until the former certificate for the shares represented thereby shall have been surrendered and cancelled, except in the case of a lost, stolen, or destroyed certificate. In this latter case, the Corporation must, if so requested by the Shareholder, issue a new certificate, provided it has received no notice that the certificate has been acquired by a bona fide purchaser, but it may require the giving of a bond or other adequate security sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft, or destruction of the certificate or the issuance of the new certificate. 3. Transfer of Shares. Subject to any limitations set forth on the certificates, shares of the Corporation may be transferred via endorsement by the signature of the owner, his authorized agent, attorney, or legal representative, and the delivery of the certificate. Notwithstanding the foregoing, such transfer is not valid, except as to the parties thereto, until the same is so entered on the books of the Corporation so as to show the names of the parties by whom and to whom transferred, the number of the certificate, and the number or designation of the shares and the date of the transfer, and until the old certificate is surrendered to the Corporation and cancelled. ARTICLE VI MISCELLANEOUS 1. Contracts. The Board may authorize one or more Officers or agents to enter into any contract or execute and deliver any instrument on behalf of the Corporation. This authority may be general or confined to specific instances. 2. Loans. No loans will be contracted on behalf of the Corporation and no evidences of indebtedness will be issued in the Corporation’s name unless authorized by a resolution of the Board. This authority may be general or confined to specific instances. 3. Checks. All checks, drafts, or other orders for the payment of money, notes, or other evidences of indebtedness issued in the Corporation’s name will be signed by the Officers and/or agents of the Corporation in the manner authorized by resolution of the Board. 4. Deposits. All funds of the Corporation, not otherwise employed, will be deposited to the credit of the Corporation in banks, trust companies, or other depositaries that the Board selects. 5. Dividends. The Board may declare and the Corporation may pay dividends on its outstanding shares, at any regular or special meeting, in the manner and upon the terms and conditions provided by law and the Corporation’s Articles of Incorporation. Before payment of any dividend, the Board may set aside sum or sums as the Directors from time to time, in their absolute discretion feel is proper for: (i) maintaining a reserve fund to meet contingencies; (ii) equalizing dividends; (iii) repairing or maintaining any property of the Corporation; or (iv) such other purpose as the Directors shall think conducive to the interest of the Corporation. The Directors may modify or abolish any such reserve in the manner in which it was created. 6. Fiscal Year. The fiscal year of the Corporation shall be fixed by resolution of the Board. 7. Amendments. These Bylaws may be amended or repealed or new bylaws may be adopted at any regular or special meeting of Shareholders at which a quorum is present or represented, by a majority of the votes cast by the shares entitled to vote in the election of any Directors, provided notice of the proposed alteration, amendment or repeal be contained in the notice of such meeting. These Bylaws may also be amended or repealed or new bylaws may be adopted by the affirmative vote of a majority of the Board at any regular or special meeting of the Board. Bylaws adopted by the Board may be amended or repealed by the Shareholders.
Pages to are hidden for
"Bylaws for Statutory Close Corporation"Please download to view full document