What is a corporate charter?

A corporate charter, also known as articles of incorporation or certificate of incorporation, is a legal document that establishes a corporation as a separate legal entity. It outlines the basic information about the company, such as its name, purpose, location, structure, and the number of shares of stock that the company is authorized to issue.

The corporate charter is filed with the state in which the company is incorporating, and once approved, it grants the company legal recognition and protection. It also sets forth the rights and responsibilities of the company's shareholders, directors, and officers.

The charter typically includes information about the company's governance structure, such as the roles and responsibilities of the board of directors and officers. It also outlines the procedures for shareholder meetings, voting rights, and the distribution of profits.

Modifying a corporate charter typically requires a formal amendment process, which may involve approval from the board of directors and shareholders, as well as filing the necessary documents with the state. Additionally, the corporate charter must comply with state laws and regulations governing corporations.