We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Charter: A Comprehensive Guide to Its Legal Meaning and Usage
Definition & Meaning
A charter is a formal document that establishes an organization, defines its structure, and outlines its rights and responsibilities. It can refer to various types of agreements, including those that create governmental bodies, municipalities, or businesses. Charters serve as foundational legal documents that grant authority and recognition to organizations, ensuring they can operate within specified boundaries and under defined rules.
Table of content
Legal Use & context
Charters are commonly used in several areas of law, including corporate law, municipal law, and nonprofit law. They play a crucial role in:
Establishing governmental entities, such as cities or counties.
Incorporating businesses and defining their corporate structure.
Granting authority to local affiliates or chapters of larger organizations.
Individuals can often use legal templates to create or modify charters, which can simplify the process of establishing an organization.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are two examples of charters:
A city charter that outlines the governance structure of a municipality, including the roles of the mayor and city council.
A corporate charter that establishes a new business entity, detailing its purpose, structure, and the rights of its shareholders.
State-by-state differences
Examples of state differences (not exhaustive):
State
Charter Type
Key Differences
California
City Charter
Allows for a strong mayor system.
Texas
Municipal Charter
Can be home rule or general law.
Florida
County Charter
May provide for a county manager form of government.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Bylaws
Rules governing the internal management of an organization.
Bylaws are created under the authority of a charter.
Articles of Incorporation
Document filed to create a corporation.
Articles are often part of the charter for a corporation.
Constitution
Fundamental principles or established precedents according to which a state or organization is governed.
A constitution is broader and may encompass multiple charters.
Common misunderstandings
What to do if this term applies to you
If you need to create or modify a charter for your organization, consider the following steps:
Determine the type of charter required for your organization.
Consult legal templates available through US Legal Forms to draft your charter.
If your situation is complex, seek assistance from a legal professional to ensure compliance with state laws.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.