Is a document which lists the objectives, powers, and authorities of a corporation. It indicates what the corporation can and cannot do. Some corporations have relatively narrow charters whereas other basically state that they may engage in any legal business activity. Some charters preclude speculative or outside investment activities. It is necessary to obtain a copy of a corporate charter before opening a securities, futures, or derivatives account. This is to determine whether the corporation is empowered to conduct such activities, with whom, and by whom. Corporate Charters are sometimes referred to as Articles of Incorporation.
The document prepared when a corporation is formed. It will set forth the objectives and goals of the corporation as well as a complete statement as to what the corporation can and cannot do in seeking these goals. When a corporation opens a margin account, the securities firm must obtain a copy of the corporate charter to be sure that the corporation is permitted to engage in transactions on margin.