What is the main purpose of by-laws in a corporation?

The main purpose of by-laws in a corporation is to govern the internal operations of the corporation. By-laws serve as the foundational rules that dictate how the corporation will be managed, including procedures for board meetings, the role and responsibilities of directors and officers, voting rights, and other operational protocols. They provide a framework that ensures the corporation runs efficiently and in accordance with both its charter and applicable laws.

While by-laws may touch upon aspects related to corporate identity, shareholder rights, and financial policies, these elements are typically governed by separate documents or statutes. For example, a corporation's identity is established through its articles of incorporation rather than by-laws. Shareholder rights are often detailed in the articles and applicable corporate statutes, while financial policies may be outlined in separate financial management documents. By-laws primarily focus on the internal governance structure and administrative functions essential for the day-to-day operations of the corporation.