A corporate charter is something of an organizational document for a corporation. A corporate charter is designed to outline the purposes of a corporation, as well as its operational procedures and structure. A corporate charter is particularly significant because of the fact that State Government examines all charters in order to determine if those charters are adequate for approval.
Without the approval of the State Government, a company will not be given approval to exist as a corporation, and thus, will be denied status as a separate legal entity apart from any of its particular members.
It is very important that a corporate charter be designed well enough to call for the approval of the State Government.
The number of charters which the State Government turns down for approval will vary depending upon the state, as the state’s statutes will have a significant impact upon the exact number of charters it approves, as will the number of corporate charters which are submitted to that State Government every year. Regardless, however, it is important that a corporate charter be designed with all necessary information and structure for it to be approved.
A corporate resolution is a separate kind of document which may often be important in light of corporate charters. A corporate resolution is a document which details a particular action being taken by a company’s board of directors, for example, explaining exactly what the intent behind the action was and any important information that the action might have for the company.
A corporate resolution can include such actions as selling real estate, offering a lease, and more. A corporate resolution is of particular importance as it provides documentation of a corporate action, which is often required under a corporate charter.