One way in which a corporation establishes rules for its governance. By-laws may be initiated either by shareholder proposal or, more typically, by the directors. If a by-law is initiated and approved by the directors, it takes effect immediately, but must be approved by ordinary resolution at the next meeting of shareholders. The main purpose for which by-laws are used in practice is to set out the rules for conducting director and shareholder meetings and to designate and assign responsibilities of officers of the corporation. See CBCA, s. 103
Law passed by local government; a form of subordinate legislation.