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

References in periodicals archive ?
Over the next three months, Washington would travel between Mount Vernon, Annapolis, and Richmond to obtain, in 1784, the corporate charter of the Potomac Company.
(19) Nevertheless, Centros, Uberseering, and Inspire Art are of essential importance to the existence or non-existence of a transatlantic market for corporate charters. The reason can be summed up as follows: As long as the Member States of the Community managed to prevent an intra-European market for corporate charters via the real seat rule, they could hardly be expected to eliminate the various obstacles that prevent European businesses from incorporating in the United States.
And like those other areas of law, the rules of corporate governance affect more than the parties embodied in the corporate charter. From the standpoint of democratic legitimacy, it is no more justifiable to allow corporations to choose which state provides their corporate governance laws than it is to allow such corporations to choose which state ought to provide the tort law or environmental law that governs them.
Poison pills, unlike the two devices discussed above, do not amend the corporate charter, thereby not requiring shareholder approval.
But during the period of industrialization, corporations used their rapidly growing economic power to bore into state constitutions, hiring early-day lobbyists to surreptitiously alter state corporate laws and promote new legal doctrines such as limited liability (originally rationalized by the need to attract investment into risky ventures that benefit the broad public) to challenge the legislatures' ability to regulate their behavior through the corporate charter.
An example of a situation giving rise to such liability would be when a contract, originally executed as a binding agreement to be performed by the Corporation, becomes the personal liability of the owners of the Corporation after the corporate charter was revoked for failure to pay franchise taxes.
In a lawsuit brought by TV preacher Jerry Falwell in November 2001, the evangelist's Thomas Road Baptist Church challenged a Virginia law passed in 1787 that prohibited corporate charters for religious institutions.
The only difference would be that those privileges would no longer be special." Such laws were eventually passed, radically changing the nature of the corporate charter.
And it is planning to petition Dan Lungren, California's attorney general and the Republican gubernatorial candidate, to initiate legal action to revoke UNOCAL's corporate charter.
Particularly when it appears in an association's articles of incorporation (sometimes called a corporate charter), the purpose statement is a relatively permanent pronouncement.
443 (1937), the corporate taxpayer issued preferred stock that was nonvoting stock under the taxpayer's corporate charter. State law, however, caused all shareholders to be entitled to vote in elections for directors.
If the corporate charter provisions that are examined here allow managers to extract benefits that raise expense ratios, and ultimately fund discounts, then at least part of the theory of managerialism has been shown to be relevant, and many other of the suspected entrenchment mechanisms (e.g., golden parachutes and poison pills) are likely to detract from the value of shareholders' wealth.

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