TeachMeFinance.com - explain charter
charter -- the legal authorization to conduct business granted by the federal or state government to a thrift institution or other business or organization.
Charter -- The charter of a company is the authority conferred
upon it by a special act of legislature to do business and
the act defines the purposes and prescribes the privileges of
the company. It is a common though incorrect practise to designate as a
charter the articles of incorporation of a company that is
formed under the general laws. In such a case the company
merely is incorporated not chartered and its articles of incorporation
are merely the papers it files with the proper
authority specifying its purposes, etc. Also, the contract for the lease of a vessel for a voyage is
called a charter.
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Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".
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