By-Laws

Bylaws serve as a contract between a business association organization, a corporation or cooperative and its members.  They provide rules for governance and serve as a basis for the conduct of the business activities.  Typically, they can be revised in accordance with provisions for by-laws changes that are set forth in them.  By-laws should characterize the nature and, if appropriate, classes of members, provide for equitable treatment of all members, and address how the cooperative is to be administered and managed.

BAM Program Mentors can offer prospective or currently active Business Association governors and cooperative directors advice about best practices employed by active cooperatives and business associations regarding:

• Membership eligibility
• Voting Procedures and Practices
• Requirements for annual and regular member meetings
• Definitions of member classes
  • Nomination and election procedures
  • Quorum requirements
• Assure equitable treatment of all members.
• Provide for equitable distribution of remaining coop assets to all members and former members upon dissolution or liquidation

Tax Issues

A variety of issues present themselves to operators of cooperatives and business associations that affect performance and earnings.   Some of these have to do with adhering to standards established for “for profit” and for “not for profit”organziations.  Others have to do with the affect that practices and operations decisions will have on tax obligations for members. 

BAM personnel can offer guidance to groups as to options in this area and provide referrals to professional service groups equipped to assist with forms and filings.