Corporate Charter DefinitionDefinition of the Corporate Charter
It is the role of a company's articles of association to determine the fundamental principles of a company limited by shares. Thus, for example, a company's articles of association define the type of operations that the company wishes to carry out once it has been set up. In this respect, a standard rule in a company statute is to perform any legitimate act allowed to a company under the law of the State, Neal R. Bevans' "Business Organisations and Company Law".
Among the fundamental characteristics of a company's articles of association are the name of the company, the name of the persons intended to act on the original administrative council, the main branch office and the name of the person authorised to represent the company. In the event of a complaint, the person named to receive delivery of a notice of invitation and a petition in the name of a company is the person named as the person authorized to receive such notice.
By-laws must be drawn up and submitted before a company can legitimately conduct transactions. Neglecting to submit the Articles of Incorporation before the commencement of operation will expose the Company's various shareholders to face to face liabilities for debt and damage arising during that term under Stephen M. Bainbridge's "Company Law".
One misunderstanding in the context of a company statute is that it is an additional tool to the generally accepted statutes. Indeed, the concept of Charter and Article refers to the same kind of legislative tool and is not a separated and separated document. Though a person or persons wishing to incorporate a corporate body may keep a lawyer, the Permanent Secretary will maintain a standards corporate or charter forms.