Charter is a document that creates a corporation.

The charter may be an approved copy of the application form, or it may be a separate document containing the same basic data. The issuance of the charter creates the corporation.

The charter is often referred to as the articles of incorporation.

Webster Dictionary Meaning

1. Charter
- A written evidence in due form of things done or granted, contracts made, etc., between man and man; a deed, or conveyance.
- An instrument in writing, from the sovereign power of a state or country, executed in due form, bestowing rights, franchises, or privileges.
- An act of a legislative body creating a municipal or other corporation and defining its powers and privileges. Also, an instrument in writing from the constituted authorities of an order or society (as the Freemasons), creating a lodge and defining its powers.
- A special privilege, immunity, or exemption.
- The letting or hiring a vessel by special contract, or the contract or instrument whereby a vessel is hired or let; as, a ship is offered for sale or charter. See Charter party, below.
2. Charter
- To establish by charter.
- To hire or let by charter, as a ship. See Charter party, under Charter, n.
Share it:  Cite

More from this Section

  • Dividends in arrears
    When preferred stock, is cumulative, preferred dividends not declared in a given period ...
  • Paid-in capital
    Paid-in capital is the total amount of cash and other assets paid in to the corporation ...
  • Bookkeeping
    Bookkeeping is a part of accounting process that involves only the recording of economic ...
  • Audit programme
    Before the work of an audit is commenced, the auditor should chalk out a programme as ...
  • Customer perspective
    Customer perspective is a viewpoint employed in the balanced scorecard to evaluate the ...