What sets the powers of a corporation?

The powers of a corporation are fundamentally established by its articles of incorporation and charter. These foundational documents detail the purpose of the corporation, define its structure, and delineate the powers granted to the corporation itself, including the authority to engage in certain business activities, enter contracts, and incur debts.

The articles of incorporation serve as a formal declaration to the state of the corporation's existence and governance, providing essential information like the corporate name, address, and the nature of the business. The charter may also include specific limitations or permissions regarding the scope of operations and governance structures. Together, these documents are essential in setting the framework within which the corporation operates and outlining the rights and responsibilities of its shareholders and directors.

While shareholders' voting decisions may influence specific actions or policies, they do not fundamentally establish the powers of the corporation; those are predetermined by the articles and charter. Global market conditions and federal regulations may impact a corporation's operations and strategic direction but do not set the powers of the corporation as defined by its foundational legal documents.