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If a nonprofit cannot show that its actions conform to the requirements of its bylaws, it will be vulnerable to lawsuits by its members, auditors or vendors.
A corporation's bylaws govern the ways the business may be operated.
I have also seen the unhappy consequences, when people got carried away and made changes in haste that they later repented at leisure.
By-laws that do not clearly make the distinction between general and special by-law amendments may mislead the board of directors and create a situation in which the membership adopts ordinary resolutions for all by-law amendments, resulting in by-laws that may not be properly in force with respect to all provisions.
This means that any by-laws drafted under the Act to effect any action, in which case the articles shall prevail.
Later discussions affirmed the wisdom of the less-drastic strategy.
For starters, even skeptics on the board agreed that some bylaws were essential, even though their content might be more artfully condensed and simplified.
Since bylaws are a contract between the organization and its members, it isn’t desirable to be able to modify the terms any old time that you feel like it.
I have seen nonprofit bylaws that allow the board to amend them at any meeting, by a majority vote – in other words, meeting just the ordinary standard for action.
While it’s true that almost everyone hates bylaws (attorneys and parliamentarians are the exception), it is possible to change them without too much grief.
Here we discuss the ordinary approach – to amend bylaws – and another alternative – to revise bylaws.
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