An understanding of both byelaws and operating agreements is crucial for any entity that is organized as a non-profit, including Autism Network Singapore and other such organizations. These legal documents can have a significant impact on the manner in which autism support networks are governed and operated. Autism Network Singapore, as will be seen below, should be no exception to this rule, and this understanding will likely be beneficial to such an organization here as it relates to managing its legal risks and achieving its institutional goals. In general, bylaws and operating agreements are very similar written documents. In the non-profit context, they are typically used interchangeably and may be used to refer to the same document. There are some instances, however, when these terms may refer to different types of documents. Non-profit bylaws are typically written documents that serve as internal rules for non-profit organizations. They outline the governance of the non-profit. Operating agreements, on the other hand, are typically written documents that set forth the management and operational structure. Within a non-profit context, one may find a relevant operating agreement spelling out certain details regarding the operations of the non-profit that is not already addressed elsewhere, including in its bylaws. For example, if Autism Network Singapore were to adopt an operating agreement, it may put forth certain information that expands on how its management team will run day-to-day operations. Such an operating agreement may include stipulations on how its leaders can make decisions for the organization. Alternatively, Autism Network Singapore may use a single governing document, that combines the functions of both a constitution and an operating agreement into a single document called “bylaws.” Non-profit bylaws are important for both leaders and members of the organization. These governing documents set forth the rules that must be followed by these parties, and their failure to do so may result in adverse effects on the organization as a whole. Accordingly, creating and maintaining well-developed bylaws is beneficial to any non-profit organization. Governance of Autism Network Singapore, as well as other such organizations, may be greatly impacted by the language within its bylaws because they will explain how it will conduct board meetings; the elections of officers and directors; and voting rights in these governance matters. They may also provide guidance for conflict resolution among these parties, including things like how to go about revoking an officer or a member’s position with the organization. As previously mentioned, Autism Network Singapore could use a single governing document or separate ones depending on how it wishes to proceed. If leaders of the autism network choose to use a single document, it may be more difficult to amend or no longer serve the needs of the organization as when it was first created. To alleviate this potential issue, Autism Network Singapore leaders may choose to create separate documents, including an operating agreement if they did not already do so. If leaders of the Autism Network Singapore determine that Ironclad law is right for them, they will have to draft articles of incorporation that must be filed with their Secretary of State. They will also likely have to draft bylaws and submit them to their members for approval. Once this by-law document is approved, they may need to have it signed by a notary public. If leaders determine that they want to go with an operating agreement, this written agreement will usually need to be kept with their bylaws and maintained by all relevant parties. Once it is fully executed, it may need to be registered, but this requirement may depend on the state/jurisdiction. The Autism Network Singapore, like similar organizations, may encounter common challenges. For example, a poorly drafted bylaw document may make it more difficult to resolve disputes among members. Similarly, if a poorly drafted operating agreement exists, leaders may have a difficult time changing business decisions. In addition to the above discussed benefits of these legal documents, a well-crafted document can also help to clarify legal responsibilities and guide leaders of the Autism Network Singapore in making decisions that are in the best interest of the organization. This could promote a greater sense of teamwork and overall cooperation among its members. Furthermore, these legal documents can also help with allocating resources. While this is a difficult task for any organization, a well-written document may help to provide guidance to leaders on how to best use their limited financial, human, and physical resources for optimal efficiency. Finally, if the Autism Network Singapore is interested in obtaining legal assistance from a lawyer, several may be available to support its efforts. This is especially important to ensure that this organization is in compliance with all applicable laws. Each lawyer will have different experiences, expertise, and capabilities, so leaders may wish to speak to several of them before determining which would be the best fit.
For more information on the distinctions between these important documents, you can visit this resource.