Corporate Authority
/ˈkɔːrpərət ɔːˈθɒrɪti/
Definitions
- (n.) The legal power granted to a corporation to act on its own behalf in business and legal affairs.
The board of directors exercises corporate authority when entering contracts.
- (n.) The scope and limitations of actions a corporation is permitted to undertake as defined in its charter or bylaws.
Corporate authority is limited by the company's articles of incorporation.
Forms
- corporate authority
Related terms
See also
Commentary
Corporate authority is typically defined and limited by a corporation’s charter, bylaws, and applicable law, so clear drafting is essential to delineate scope.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.