What is the main purpose of corporate by-laws?

The primary purpose of corporate by-laws is to govern internal management and operational procedures of a corporation. By-laws serve as the internal rules and regulations that dictate how the company functions, including the roles and responsibilities of directors and officers, procedures for meetings, voting requirements, and the process for amending the by-laws themselves. They ensure that there is a structured framework within which the corporation operates, allowing for consistent decision-making and compliance with applicable laws.

In contrast, the other options focus on aspects that are not primarily addressed by by-laws. Financial obligations of shareholders relate more to corporate governance and obligations rather than internal procedures. The roles of external auditors are defined by different regulations and standards that ensure financial transparency and accountability. Determining pricing of corporate shares is a concern related to market conditions and company valuation rather than an internal procedural mechanism laid out in by-laws. Each of these functions plays a role in corporate operations, but by-laws specifically concentrate on the organizational structure and management processes.