Legal Definitions - charter

A charter is a foundational legal document that establishes an entity, defines its purpose, outlines its structure, and grants specific powers or rights. It serves as the primary governing document for various organizations, from corporations to municipalities. In a separate, more common usage, "charter" can also refer to the act of leasing a large vehicle for private or exclusive use.

• Example 1 (Organizational Charter): A group of entrepreneurs decides to launch a new biotechnology company. They file Articles of Incorporation with the state government, which legally establishes their business. This document, often referred to as the company's corporate charter, specifies its official name, its primary business purpose, the types and number of shares it can issue, and its initial organizational structure. It acts as the fundamental legal framework that governs the company's existence and operations.

• Example 2 (Municipal Charter): Residents of a large unincorporated community decide they want to form their own city to gain more local control over services and development. They work with state officials to draft and adopt a city charter. This charter is a comprehensive legal document that establishes the city's form of government (e.g., mayor-council or city manager), defines the powers and responsibilities of its elected officials, outlines its departments, and sets the framework for local lawmaking, taxation, and public services. It essentially functions as the city's constitution.

• Example 3 (Leasing a Vehicle): A professional sports team needs to travel to an away game across the country on short notice, and commercial flight schedules don't meet their needs. The team's management decides to charter an airplane. This means they enter into a contract to lease the entire aircraft, along with its crew, for their exclusive use for that specific trip. The flight is then referred to as a chartered flight, providing flexibility and privacy not available on a regular commercial service.