ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -“Charter document” is a term used to describe a company’s formation document, such as a corporation’s Articles of Incorporation or a limited liability company’s Articles of Organization.

Detailed explanation-2: -Charters are documents that bind a company’s objectives and goals, be it non-profit or for-profit status, full registered name, and location of the company’s representative. The authorised representative is the individual who can legally sign and accept documents on the company’s behalf.

Detailed explanation-3: -The Memorandum of Association (MOA) of a company defines the constitution and the scope of powers of the company. In simple words, the MOA is the foundation on which the company is built. Hence, it is called the charter of the company. Was this answer helpful? 0.

Detailed explanation-4: -A chartered company is an association with investors or shareholders that is incorporated and granted rights (often exclusive rights) by royal charter (or similar instrument of government) for the purpose of trade, exploration, and/or colonization.