California corporate bylaws are created by the incorporator or board of directors of a corporation to outline the operations of the entity, regulate the directors and shareholders, and maintain efficiency within the company. The bylaws are contained within a written document that will explain how directors will be elected, how and when meetings of directors and shareholders will take place, how and when shares and certificates will be distributed, and what duties the elected officers have.
A Californian corporation may choose not to establish bylaws; in which case, the default statutes in the California code will be applied to the entity. While the state statutes were drafted to cover almost all matters relating to the operations of a corporation, most entities still create their own bylaws to ensure they cover all the intricacies of their specific company.
Chapter: Title 1, Division 1