A statute can regulate the operation of a company.
The Latin word statūtum came to our language as 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 in binding obligations .
It should be noted that a rule is an indication that must be followed. Generally, anyone who does not follow a rule receives some kind of sanction or punishment.
What is a statute
A statute can be understood as a series of rules that are created and made known to be considered by a specific sector of the community . Typically, a statute is subordinated to laws that have a higher rank.
There are different types of statutes. Their function is to organize the operation of an entity or regulate relations between people according to certain criteria to minimize and/or resolve potential 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 sets out the obligations and rights of the shareholders or partners and establishes the provisions for the operation of the company in question.
The bylaws have a dual function. On the one hand, as we have already indicated, they are responsible for internal regulation by establishing the obligations and rights of the members and defining the links between them. On the other hand, the bylaws also regulate the functioning of the company with respect to third parties.
The bylaws of a company, in short, make its structuring possible. This is intended to promote the firm 's operation and minimize the possibility of future conflicts that may arise between the partners.
Statutes are subordinate to higher rules, such as laws.
The status of an SME
Let's take the case of small and medium-sized enterprises ( SMEs ). The creation of a statute when founding a company of this type is essential so that it can then operate normally and so that, in the event of a subsequent dispute between the partners, the problem can be resolved in accordance with the provisions of the regulations.
The bylaws of an SME define everything from the name of the company to its purpose, including the capital contributions of the partners, the distribution of profits and the assignment of functions. The bylaws also name the administrator, the supervisory body and the legal representatives of the company.
Other issues resolved by a statute of this kind are the steps to follow if a partner dies or leaves the company and how to call a meeting of partners to make decisions .
The foundation of a club
Not only commercial companies have bylaws. A non-profit association and an entity that brings together individuals with common interests and promotes sports or cultural activities can also be governed by bylaws.
Let's look at the statute of Club Atlético Boca Juniors , one of the most important clubs on the American continent. This Argentine institution approved its first statute in 1919 ; said statute was modified and updated on several occasions.
Currently, the statute of 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.