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Simple English definitions for legal terms
corporate charter
Read a random definition: comitia
A quick definition of corporate charter:
A corporate charter is a document that a person creates when they want to start a company. It has important information about the company, like its name, what it does, and how much money it has. The charter also says how many people are in charge of the company and how they can be replaced. It's like a rulebook for the company to follow.
A more thorough explanation:
A corporate charter is a document that an incorporator creates and files with the Secretary of State in the state where the corporation is being formed. This document outlines important information about the corporation, such as its name, purpose, and capital structure.
For example, if someone wants to start a new company called ABC Inc., they would need to create a corporate charter that includes the following information:
- The names of the original incorporators
- The name of the corporation (ABC Inc.)
- The purpose of the corporation (e.g. to sell products or provide services)
- The capital structure of the corporation (e.g. the number and classes of shares)
- Any voting rights attached to the shares
- The size of the Board of Directors and their terms
- The process for removing a member of the Board of Directors
The corporate charter is an important document because it establishes the legal existence of the corporation and sets out the rules and regulations that will govern its operations.