Charter

The charter of a company is the authority conferred upon it by a special act of legislature to do busine and; the act defines the purposes and prescribes the privileges of the company. It is a common though incorrect practise to designate as a charter the articles of incorporation of a company that is formed under the general laws. In such a case the company merely is incorporated—not chartered—and its articles of incorporation are merely the papers it files with the proper authority specifying its purposes, etc. Also, the contract for the lease of a ve el for a voyage is called a charter.. Chartered accountant. English; one who holds a charter (certificate) from the Institute of Chartered Accountants stating that he has pa ed an examination and is competent to perform an accountant’s work.