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Articles Of Incorporation Explained

28/04/2010 by admin

The Articles of Incorporation (sometimes also referred to as the Certificate of Incorporation or the Corporate Charter) are the primary rules governing the management of a corporation in the United States and Canada, and are filed with a state or other regulatory agency.A set of documents filed with a government body for the purpose of legally documenting the creation of a corporation. The document that must be filed with an appropriate government agency, commonly the office of the Secretary of State, if the owners of a business want it to be given legal recognition as a corporation.

Articles of incorporation, sometimes called a certificate of incorporation, must set forth certain information as mandated by statute. Although laws vary from state to state, the purposes of the corporation and the rights and liabilities of shareholders and directors are typical provisions required in the document. Official forms are prescribed in many states.

Once the articles of incorporation are filed with the secretary of state, corporate existence begins. In some jurisdictions, a formal certificate of incorporation attached to a duplicate of the articles must be issued to the applicant before the business will be given legal status as a corporation.

Also referred to as the “corporate charter.”

Articles of incorporation typically contain pertinent information such as the firm’s address, profile, distribution of corporate powers and the amount/type of stock to be issued. Some states will offer more favorable environments and, as a result, attract a greater proportion of firms seeking incorporation.

Filed Under: Derivatives, Future and Options Tagged With: Articles Of Incorporation, forex, investors, portfolio, STOCKS

Comments

  1. Share Tips says

    12/05/2010 at 6:12 pm

    Very good information about certificate of incorporation.
    This is a really great blog, i found it very useful and bookmarked it.
    Thanks.
    CapitalVia

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