The corporate governance charter is a document that records the company’s details about its business. This is highly detailed and contains particulars like the official name and address of the company. This is a mandatory procedure and every corporate body is required to file this charter with the department or secretary of state. This is done in order to ascertain that the company has been legally established. This charter is necessary to legitimize the business operations of the company and following factors must be considered while framing these charters:
- Along with the legal name and address, the company must also state its purpose and goals for establishing the business.
- There should be specific information stated about the stocks and shares of the company and the nature of investment that the company and its investors must follow.
- The charter should also mention and distinguish between the major and minor stockholders of the company and provide distinct privileges accordingly.
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Sample Corporate Governance Charter Agreement
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