Also known as:article of incorporation · articles of incorporations · certificate of incorporation
Written by attorneys · grounded in primary & secondary sources — see below
A governing document that sets forth the basic terms of a corporation's existence, including the number and classes of shares and the purposes and duration of the corporation.
Sources & Authorities
How it applies
Common Examples
6
Missing Authorized Shares Statement
Amelia Amari and two colleagues prepared articles for Apollo Energy that listed multiple classes of stock but omitted any statement of the number of shares authorized to issue. The secretary of state rejected the filing. The omission prevented formation because the articles failed to supply the mandatory information required for valid incorporation.
Articles Authorize New Division
Alexis Archer amended the articles of Apex Dynamics to create a plastics trading division. The amendment allowed the company to expand into unrelated lines of business. The change in the articles enabled the corporation to pursue the new activity without ultra vires challenges.
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Uniform Acts
Model Codes
Restatements
Casebooks
Hornbooks
Study Supplements
Dictionaries
Miller v. Miller301 Minn. 207, 222 N.W.2d 71, 81 (1974)
Charter Amendments Limit Board
Ariana Azizi proposed amendments to the articles of Aether Technologies that added new director qualification rules. The board adopted the amendments after shareholder notice. The articles changes altered eligibility standards for future board service.
Stroud v. Grace606 A.2d 75 (Del. 1992)
Articles Permit Board Expansion
Antonio Alvarado sought to expand the board of Arcadia Retail by amending the articles to increase the maximum number of directors. The board responded with defensive measures. The articles provision supplied the authority for the proposed increase.
Blasius Industries, Inc. v. Atlas Corp.564 A.2d 651, 660 n.2 (Del. Ch. 1988)
Articles Enable Sale Process
Alexandra Armstrong's board of Apollo Energy considered selling the company after receiving an acquisition offer. The articles contained a broad purpose clause that permitted the transaction. The clause confirmed the board's power to pursue the sale.
Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc.506 A.2d 173, 176 (Del. 1986)
Articles Support Defensive Plan
Andrew Avery's board of Apex Dynamics adopted a defensive restructuring under authority granted in the articles. The plan included new share classes and voting provisions. The articles language supplied the basis for implementing the measures.
Unitrin, Inc. v. American General Corp.651 A.2d 1361, 1391 (Del. 1995)
Common questions
Frequently Asked
4
When does a corporation's legal existence begin?+
Corporate existence begins when the articles of incorporation are filed by the secretary of state unless the articles specify a delayed effective date. Filing provides conclusive evidence that all conditions precedent have been satisfied.
Supporting sources
What mandatory information must the articles contain under the Model Business Corporation Act?+
The articles must set forth the corporate name, the number of shares the corporation is authorized to issue, the street and mailing addresses of the initial registered office, the name of the initial registered agent, and the name and address of each incorporator.
Supporting sources
Can defects in the articles prevent corporate formation?+
Defects in the articles do not prevent formation once the secretary of state files the document. The corporation must later amend the articles to cure the defects or face possible administrative sanctions.
Supporting sources
How do the articles interact with bylaws?+
Bylaws may contain any provision not inconsistent with law or the articles of incorporation. Provisions in the bylaws that conflict with the articles are unenforceable.
Supporting sources
488 A.2d 858 (Del. 1985)Business Associations
…be managed by or under the direction of a board of directors, except as may be otherwise provided in this chapter or in its certificate of incorporation. If any such provision is made in the certificate of incorporation, the powers and duties conferred or imposed upon the board of directors by this chapter shall be exercised or performed to…