What is a charter?

A charter is a legal document that defines the rights and privileges of a person, company, organization, or group. In the context of business, a charter is often used to establish a corporation or other form of business entity, outlining the company's purpose, structure, and rules of operation.

Charter documents typically include provisions related to corporate governance, shareholder rights, management structure, and other important aspects of the business. They may also include details about the company's financial operations, such as stock offerings, dividends, and other shareholder benefits.

Charter documents are typically filed with the appropriate government agency, depending on the jurisdiction and type of organization. For example, in the United States, corporations register with the state where they are incorporated, and must file annual reports and other compliance documents to maintain their status.

Overall, a charter is an important legal document that establishes the foundation and guidelines for a business or organization's operation, and helps ensure that it operates in accordance with the law and best practices.