SEPTEMBER 2019 BEACON

By-Laws, Board, Policy, and Traditions What are they, what’s the difference, why do we have them? Ron Draper NCYC Director, Publications June 1, 2019 By-Laws The By-Laws of the North Channel Yacht Club are a legal document, and exist primarily to define our Club as a single legal entity so it can relate to various private and government institutions and agencies. Secondarily, By-Laws provide a roadmap for our Club’s government, activities and actions. The By-Laws are a legally binding agreement between the Club and the Members and between the Club and other Institutions and Government agencies. By-Laws provide an outline for how our Club will operate as an organization. Our status as a Not for Profit Organization requires us to keep a record of them and abide by the provisions contained in them. The By-Laws ensure the Club is consistent in its governmental conduct and organization, even though the Officers and Directors change year to year. The By-Laws ensure next year’s Flag and Board will follow the same rules as this year’s Flag and Board. It would be appropriate to think of the By-Laws as compared to the Articles of Incorporation for a Corporation or the Charter of a City, or the Constitution of our Country. By-Laws can be amended; however, it requires a 2/3 Vote of the Membership and the amendment process is burdensome by design. Examples of private and government agencies with interest in our By-Laws: • The IRS is interested in certain aspects of the By-Laws to grant and maintain our Not for Profit tax status, see ARTICLE II. last phrase, among others. • The State of Michigan is interested in our organization’s By-Laws as it relates to the lease of Bottom Land to maintain our East Harbor. • The State of Michigan is interested in our organization’s By-Laws as it relates to the Michigan Liquor Control Commission to maintain our MLCC Club License to sell alcohol. • Our Bank and Insurance Company are interested in our By-Laws as it relates to our ability to maintain bank accounts and insure our property. • St. Clair County Health Department is interested in our By-Laws as it relates to our maintaining a commercial kitchen and serving food for recompence. Without good By-Laws we couldn’t have any of these things. Interestingly, the largest part of our By-Laws is ARTICLE VII. NOMINATIONS, ELECTIONS, BALLOTING AND MEETINGS, with a total of 13 Sections. This is to ensure a fair and equitable Government in the Club and to ensure compliance with standards found in State and Federal election procedures.