What Is Included in Montana Corporate Bylaws?
Your Montana corporate bylaws should cover the ways your business will deal with money, management, and other important matters. Per MT Code § 35-14-206, bylaws can incorporate any rules for your corporation that don’t contradict state law or the Articles of Incorporation. Here are some topics that any strong corporate bylaws should include:
- Meetings
- Stock
- Directors and officers
- Finances
- Records
- Amendments and emergencies
What Information Do I Need to Use Northwest’s Free Montana Corporate Bylaws?
Focus on your business and leave the heavy lifting to us! Our lawyer-drafted, comprehensive corporate bylaws template lets you fill out your bylaws right on this page. You can save it for later with a free account, then download a completed draft to sign whenever you’re ready.
In order to fill out our free corporate bylaws template, you’ll need your:
This must be your business’ legal entity name, or the name you put on your Montana Articles of Incorporation.
List when (date and time) you will hold annual meetings for shareholders.
Once your board of directors have approved the bylaws for the corporation, fill in the date.
The director signs the bylaws to approve them on behalf of the board of directors.
You should also expect to maintain current lists of all shareholders and directors.
Why Do Corporate Bylaws Matter in Montana?
Any legitimate Montana corporation should have a good set of bylaws. Here are a few reasons why:
1. Corporate bylaws are legally required in Montana.
Under MT Code § 35-14-206, a corporation’s initial bylaws must be adopted by its incorporators or board of directors. So to stay legally compliant, your corporation needs bylaws.
2. Corporate bylaws establish the rules and roles within your corporation.
Your Articles of Incorporation form your corporation with the state of Montana, but your bylaws create an actual framework of rules and structure for your corporation. They determine how many directors and officers you’ll have and their powers, set when and where board and shareholder meetings are held, and how voting will take place.
Plus, because your bylaws document all of your corporation’s rules, they can be used to help settle disputes between board members or shareholders.
3. Corporate bylaws prove that your business is a legitimate corporation.
To open a bank account, enter a contract, or attract a potential investor, you need to show your corporation is a legitimate organization following certain protocols. Adopting corporate bylaws demonstrates that. And in the event of a lawsuit, your corporate bylaws help prove your limited liability status.
Who Prepares the Bylaws?
Bylaws are adopted by your directors (or incorporators, if directors have not yet been named) at your first organizational meeting. Because corporate bylaws are complicated legal documents, many corporations consult a lawyer before finalizing their bylaws. You can use our free Montana Corporate Bylaws template to help get you started.
Are Corporate Bylaws Legally Binding?
Yes. All directors, shareholders, and officers are legally required to follow bylaws. Breaking the rules in your corporate bylaws could jeopardize your corporation’s limited liability status.
FAQs
No. Operating agreements are legal documents outlining rules for how owners of an LLC interact. Bylaws, on the other hand, establish the rules for running a corporation and managing its internal affairs.
No. Corporate bylaws are not filed with the Montana Secretary of State. Keep your bylaws on hand with other internal documents like meeting minutes, resolutions and other records.
Technically, no, but they really should be. Including the signatures of all board members and officers proves the administrators of the corporation agreed to the rules it sets.
MT Code § 35-14-1003 contains rules for making amendments, but generally, you decide the way your bylaws may be amended and should specify that process in the articles or bylaws themselves.