Only a few department of corporations are in existence today and one of the first steps towards creating a new corporation is to select the members of the board. Directors are identified in the "bylaws" of the corporation, or are selected by the "incorporator" of the new corporation. Once the enterprise is regularly conducting business, directors are then elected by shareholders at annual conferences. Bylaws play an important role because they lay down the primary rules that govern the corporation during its continuing growth. It's best that an attorney assist you when staring a new business.