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is the document that enfranchises a corporation. It is sometimes called "articles of incorporation" and is usually filed with the secretary of state in the state in which the company incorporates. The charter spells out what activities the corporation may undertake, the number and type of shares of capital stock it is authorized to issue, and the names of the company's founding members. As a general rule, the charter can only be amended by a vote of the shareholders. Often a vote of two thirds of the shares is required. An example of a simple charter is provided below. See: Bylaws. |