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Corporate Charter

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Corporate charter
A legal document creating a corporation.

Articles of Incorporation
A document outlining the basic functions of a company. Among other things, it states whether it will be an S Corporation or a C Corporation and how many authorized shares there will be. It also states how its corporate governance and operations will work. A company that seeks to incorporate must file articles of incorporation with the appropriate authority. In the United States, that authority is usually the states and sometimes the federal government. It is also called a corporate charter or simply a charter. See also: Charter Amendment Limitations.

corporate charter


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Disposing of a valuable corporate charter is not as simple as a straight sale of the asset and can have unintended tax consequences if not properly structured.
The Arkansas Court of Appeals has held that "officers and directors of a corporation who actively participate in its operation during the time when the corporate charter is revoked for failure to pay corporate franchise taxes are individually liable for debts incurred during the period of revocation.
District Judge Norman Moon struck down the state law as unconstitutional and ordered the Virginia State Corporation Commission to grant Thomas Road a corporate charter.
 
 
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