Corporate Charter

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What is a Corporate Charter?

The Corporate Charter is a legal document that is prepared during the formation of a corporation that states how the company should be governed.

It normally states such things as:

• The name and legal form of the corporation
• Its place of business
• The corporate mission, purpose, objectives
• Voting rights, rules and powers
• Protection mechanisms against hostile takeovers
• Rules of corporate governance
• Classes of securities to be issued.

It is also called: Articles of Incorporation or Articles of Association and other similar terms depending on the country.

The term must not be confused with a Vision Statement nor with a Mission Statement.

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Expert Tips Advanced insights about the Corporate Charter. Here you will find professional advices by experts. Consultancy Tips Teaching Tips Practical Implementation Tips How to Articulate, Communicate and Deliver on a Corporate Purpose Statement How to Create a Corporate Purpose Statement, Corporate Mission, Organizational Purpose, Organizational Mission A Corporate Purpose Statement (CPS) has at least 3 major functions: market definition, employee motivation and external ...

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