What do bylaws govern in a corporation?

Bylaws are essentially the internal rules and guidelines that govern the management and operations of a corporation. They establish the framework within which the corporation will run, including details such as the roles and responsibilities of officers and directors, the procedure for meetings, how voting is conducted, and how corporate records are maintained. This governance is crucial because it outlines how decisions are made and how the corporation interacts with its shareholders and other stakeholders.

This option emphasizes the operational side of the corporation, which is the primary purpose of bylaws. They do not directly regulate financial performance or external compliance—those aspects are typically governed by broader financial regulations or laws applicable to the corporation's operations. Similarly, while bylaws can define general guidance on dividends, their main focus is not specifically on how shareholder dividends are distributed but rather on the procedures for making such decisions within the framework of corporate governance.