A statute can regulate the operation of a company.
The Latin word statūtum came to our language as a statute . The concept is used to refer to an order or set of rules that, in a certain area or entity, have the force of law or are effective to bind .
It should be noted that a rule is an indication that must be followed. Generally, anyone who does not follow a rule receives some type of sanction or punishment.
What is a statute
The statute can be understood as a series of rules that are created and made known so that they can be considered by a specific sector of the community . Typically, the statute is subordinated to laws that have a higher rank.
There are different types of statute. Its function is to organize the operation of an entity or regulate relationships between people according to certain criteria to minimize and/or resolve possible conflicts.
Operation of a legal entity
When a legal entity is established, the rules agreed upon by the founders make up the statute of the new company or foundation. This statute establishes the obligations and rights of the shareholders or partners and establishes the provisions for the operation of the company in question.
The statute has a double function. On the one hand, as we already indicated, it is responsible for internal regulation by instituting obligations and rights of the members and delimiting the links between them. On the other hand, the statute also orders the operation of the company with respect to third parties.
The statutes of a company, in short, make its structuring possible. This seeks to promote the operation of the firm and minimize the possibility of future conflicts that may arise between partners.
Statutes are subordinate to higher rules, such as laws.
The status of an SME
Take the case of small and medium-sized enterprises ( SMEs ). The creation of a statute at the time of founding a company of this type is essential so that it can then operate normally and so that, in the event of a subsequent confrontation between the partners, the problem can be resolved in accordance with the provisions of the rules.
The statute of an SME defines everything from the name of the company created to its objective, including the capital contributions of the partners, the distribution of profits and the assignment of functions. The statute also names the administrator, the supervisory body and the legal representatives of the company.
Other issues resolved by a statute of this type are the steps to follow if a partner dies or leaves the company and how to convene a meeting of partners to make decisions .
The foundation of a club
Not only commercial companies have statutes. A non-profit association and an entity that brings together individuals with common interests and promotes sporting or cultural activities may also be governed by statutes.
Let's look at the status of Club Atlético Boca Juniors , one of the most important clubs on the American continent. This Argentine institution approved its first statute in 1919 ; This statute was modified and updated on several occasions.
Currently, the statute of the Club Atlético Boca Juniors consists of six titles. The first article of Title I , for example , states that one of the purposes of the civil association is to promote the “comprehensive development” of its members.