1504 - Adoption, amendment and contents of bylaws.
§ 1504. Adoption, amendment and contents of bylaws. (a) General rule.--Except as otherwise provided in this subpart, the shareholders entitled to vote shall have the power to adopt, amend and repeal the bylaws of a business corporation. Except as provided in subsection (b), the authority to adopt, amend and repeal bylaws may be expressly vested by the bylaws in the board of directors, subject to the power of the shareholders to change such action. The bylaws may contain any provisions for managing the business and regulating the affairs of the corporation not inconsistent with law or the articles. In the case of a meeting of shareholders, written notice shall be given to each shareholder that the purpose, or one of the purposes, of a meeting is to consider the adoption, amendment or repeal of the bylaws. There shall be included in, or enclosed with, the notice a copy of the proposed amendment or a summary of the changes to be effected thereby. Any change in the bylaws shall take effect when adopted unless otherwise provided in the resolution effecting the change. (b) Exception.--Except as otherwise provided in section 1310(a) (relating to organization meeting), or in the articles to the extent authorized by section 1306(b) (relating to other provisions authorized), the board of directors shall not have the authority to adopt or change a bylaw on any subject that is committed expressly to the shareholders by any of the provisions of this subpart. See: Subsection (d) (relating to amendment of voting provisions). Section 1521 (relating to authorized shares). Section 1713 (relating to personal liability of directors). Section 1721 (relating to board of directors). Section 1725 (relating to selection of directors). Section 1726 (relating to removal of directors). Section 1729 (relating to voting rights of directors). Section 1756 (relating to quorum). Section 1757 (relating to action by shareholders). Section 1765 (relating to judges of election). Section 2105 (relating to termination of nonstock corporation status). Section 2122 (relating to classes of membership). Section 2124 (relating to voting rights of members). Section 2302 (relating to definition of minimum vote). Section 2321 (relating to shares). Section 2322 (relating to share transfer restrictions). Section 2325 (relating to sale option of estate of shareholder). Section 2332 (relating to management by shareholders). Section 2334 (relating to appointment of provisional director in certain cases). Section 2337 (relating to option of shareholder to dissolve corporation). Section 2923 (relating to issuance and retention of shares). (c) Bylaw provisions in articles.--Where any provision of this subpart or any other provision of law refers to a rule as set forth in the bylaws of a corporation, the reference shall be construed to include and be satisfied by any rule on the same subject as set forth in the articles of the corporation. (d) Amendment of voting provisions.-- (1) Unless otherwise provided in a bylaw adopted by the shareholders, whenever the bylaws require for the taking of any action by the shareholders or a class of shareholders a specific number or percentage of votes, the provision of the bylaws setting forth that requirement shall not be amended or repealed by any lesser number or percentage of votes of the shareholders or of the class of shareholders. (2) Paragraph (1) shall not apply to a bylaw setting forth the right of shareholders to act by unanimous written consent as provided in section 1766(a) (relating to unanimous consent). (Dec. 19, 1990, P.L.834, No.198, eff. imd.; Dec. 18, 1992, P.L.1333, No.169, eff. 60 days) 1992 Amendment. Act 169 amended subsecs. (b) and (d), retroactive to October 1, 1989, as to subsec. (d). Cross References. Section 1504 is referred to in sections 1103, 1757, 2332, 3121 of this title.