What is a common requirement for corporate bylaws?

Corporate bylaws serve as the internal governing document for a corporation and outline the rules and procedures for managing the corporation's operations. A common requirement for corporate bylaws is that they should clearly delineate the internal governance rules, including the structure of the board of directors, voting procedures, meetings of shareholders, and other operational details that guide the company's day-to-day activities.

Establishing these governance rules is crucial because they provide a framework within which the corporation functions, ensuring that all members understand their rights and obligations. This structure helps in maintaining order and adherence to the corporation's objectives.

In contrast, bylaws do not need to be public documents accessible to everyone, nor do they require approval from the Securities and Exchange Commission (SEC) before implementation; they are internal documents. Additionally, while shareholder input may be necessary in some contexts, unanimous approval by all shareholders is not a requirement for bylaws to be valid. Typically, they are adopted by the board of directors at the corporation's formation or through a majority vote, reflecting the operational flexibility inherent in corporate governance.