This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
The powers of a corporation are derived from the charter granted it by the state and these powers are limited by the law in some respects. A corporation has no power to do anything not expressly mentioned in its charter or necessary to carry out some purpose which is expressly mentioned by its charter.
Before the general incorporation acts were passed, the corporation had to secure its life and its grant of powers by special application and special act of the legislative or sovereign authority. Since then, the application has become a matter of form only. There is no discretion in the executive authority to refuse any request for a charter which conforms to a few set forms and regulations. Any citizen has as much right as any other to organize a corporation without asking a favor from any man or any governmental body.