Small Business Term: Non-Profit Corporation By-laws

by John Burke

0 min read

All nonprofit corporations are legally obligated to have bylaws. The bylaws set out the rules for governing and operating the corporation on a day-to-day basis. The directors of the nonprofit corporation use the bylaws to determine how to make decisions and how the corporation will operate.

Usual provisions include the determination of the financial year end, the qualifications required for membership, banking arrangements, provisions as to year-end statements, and detailed rules regarding annual meetings and special meetings of members.

The bylaws can change as the corporation’s activities evolve. To do this, the board of directors must adopt the change, and the members must confirm it in a general meeting.

References & Resources

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