Corporate glossary
What the corporate purpose is
The corporate purpose is the activity or set of activities for which the company is incorporated. The law requires it to be precise and determined (art. 11, subsec. 3).
What the corporate purpose is
The purpose delimits the company's capacity and the powers of its representatives: the administrator binds it by acts that are not notoriously alien to the purpose (art. 58). A vague or unlimited purpose is often objected to by the registry.
A lawful purpose but carried out through unlawful activity, or prohibited by reason of the type, entails serious consequences (arts. 18 to 20).
Distinctions often confused
Corporate purpose is not the same as Actual activity. The purpose is what the bylaws authorize; the activity is what the company actually does. They must be consistent.
An informational definition; it does not constitute legal advice nor replace professional consultation.
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