Corporate Charter

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Description of Corporate Charter. Explanation.

Definition Corporate Charter. Description.

The Corporate Charter is a legal document that is prepared during the formation of a corporation that states how the company should be governed.

It normally states such things as:

• The name and legal form of the corporation
• Its place of business
• The corporate mission, purpose, objectives
• Voting rights, rules and powers
• Protection mechanisms against hostile takeovers
• Rules of corporate governance
• Classes of securities to be issued.

It is also called: Articles of Incorporation or Articles of Association and other similar terms depending on the country.

The term must not be confused with a Vision Statement nor with a Mission Statement.

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Compare with: Corporate Governance  |  Preferred Stock  |  Strategic Vision  |  Organization Chart  |  Ultra Vires

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