Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

What is an Incorporators Statement?

An Incorporators Statement is a document that outlines the initial directors of a corporation when it is first registered. It is prepared by the incorporator and kept with the corporation's records.

Understanding the Contents of an Incorporator’s Statement

Incorporator’s Statement is typically divided into three main sections – the structure, purpose, and authority of the corporation. The structure outlines the number of directors, the address of the corporation, and the number of shares the corporation is authorized to issue. The purpose section describes the nature and scope of the corporation’s activities, such as the production of a product or provision of service. The authority section gives the directors the right to take actions, such as manage finances, make decisions, and hire employees.

Importance and Legal Standing of an Incorporator’s Statement

An Incorporator’s Statement is an important document, as it lays out the structure and purpose of the corporation and provides the directors with certain rights and privileges. It carries legal enforcement and stands as evidence in the event of a legal dispute, so it is important for the statements to be accurate, complete, and up-to-date.

Frequently Asked Questions

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.