What is a Corporate Charter? A Comprehensive Guide to Its Legal Definition
Definition & Meaning
A corporate charter, also known as a certificate of incorporation, is a formal document that a business must file with the secretary of state when it is being incorporated. This document outlines essential information about the corporation, including its name, purpose, the number of shares it is authorized to issue, and the names of the individuals involved in its formation. The charter serves as the foundational document for a corporation and is crucial for establishing its legal identity.
Legal Use & context
The corporate charter is primarily used in the context of business law. It is essential for the formation of a corporation and is required for legal recognition. This document is relevant in various areas of law, including corporate governance and compliance. Users can often manage the filing process themselves using legal templates provided by services like US Legal Forms, which offer guidance on how to complete the necessary forms correctly.
Real-world examples
Here are a couple of examples of abatement:
For instance, if a group of entrepreneurs wants to start a tech company, they must file a corporate charter with their state's secretary of state. This document will include their company name, the purpose of the business (e.g., developing software), and the number of shares they plan to issue to investors.
(hypothetical example) A bakery may file a corporate charter to operate as a corporation, detailing its name, the types of baked goods it will sell, and the number of shares it will offer to potential investors.