[chahr-ter] 
| 1. | a document, issued by a sovereign or state, outlining the conditions under which a corporation, colony, city, or other corporate body is organized, and defining its rights and privileges. |
| 2. | (often initial capital letter ) a document defining the formal organization of a corporate body; constitution: the Charter of the United Nations. |
| 3. | authorization from a central or parent organization to establish a new branch, chapter, etc. |
| 4. | a grant by a sovereign power creating a corporation, as the royal charters granted to British colonies in America. |
| 5. | Also called charter party. a contract by which part or all of a ship is leased for a voyage or a stated time. |
| 6. | a tour, vacation, or trip by charter arrangement: The travel agency is offering charters to Europe and the Caribbean. |
| 7. | special privilege or immunity. |
| 8. | to establish by charter: to charter a bank. |
| 9. | to lease or hire for exclusive use: The company will charter six buses for the picnic. |
| 10. | to give special favor or privilege to. |
| 11. | of or pertaining to a method of travel in which the transportation is specially leased or hired for members of a group or association: a charter flight to Europe. |
| 12. | that can be leased or hired for exclusive or private use: a charter boat for deep-sea fishing. |
| 13. | done or held in accordance with a charter: a charter school. |
| char·ter (chär'tər) n.
tr.v. char·tered, char·ter·ing, char·ters
[Middle English chartre, from Old French, from Latin chartula, diminutive of charta, paper made from papyrus; see card1.] char'ter·er n. |
Charter
A legal document that provides for the creation of a corporate entity. A corporation's charter is issued by either a federal or a regional government and effectively creates a legal entity out of the business, which existed only as a partnership, sole proprietorship or similar business before incorporating.
Also referred to as "articles of incorporation".
Investopedia Commentary
A corporation's charter, once issued by the government of jurisdiction, will vary in structure depending on the country in which it's issued. However, most charters usually include the corporation's name, the location of its head office, the date of incorporation, the amount/type of stock to be issued and any restrictions on areas of business activity or further share issuances.
Related Links
The Basics Of Corporate Structure
Policing The Securities Market: An Overview Of The SEC
See also: Articles of Incorporation, Authorized Stock, Corporation, General Partner, Limited Partnership - LP, Partnership, Sole Proprietorship
Also spelled: charters, chartered, articles of incorporation
