Bylaws vs. MEMART: Cornerstones of a Company
Dear BIVILLEPM Community,
Ever wondered what makes a company tick? Two key documents play a vital role: Bylaws and the Memorandum and Articles of Association (MEMART).
MEMART lays the foundation. It defines the company’s purpose, the number of shares, and the initial shareholders. Think of it as the blueprint for the company’s existence. Bylaws, on the other hand, delve into the operational nitty-gritty. They outline how the company will be governed, including procedures for meetings, voting rights, and officer duties. Bylaws are the internal rulebook that keeps things running smoothly.
In essence, MEMART establishes the “who” and “what” of the company, while Bylaws dictate the “how.”
This makes me wonder why companies can disappear when the owner passes on if there are no Bylaws (which function similarly to a constitution). I don’t believe it’s possible to effectively structure a business without this key document.
Image By #GeorgeNWOGU
Here’s the interesting part: While MEMART is a mandatory document for registered companies in Nigeria, Bylaws are not. I wonder why the Nigerian government doesn’t mandate companies to set up Bylaws. Clear internal guidelines can prevent confusion, disputes, and ensure good corporate governance. What do you think?
Source: Authored by me, in collaboration with Gemini AI
#NigerianBusiness #CorporateGovernance #Bylaws #MEMART #CompanyOperations #COO #GeorgeNWOGU #BIZVILLEPM 🌐🚀
Warm regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
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