De Jure Corporation

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DEFINITION of 'De Jure Corporation'

A business that has fulfilled its requirements for formation according to the regulations for earning a state charter. De jure, meaning "a matter of law," indicates that the company has been fully and legally chartered, and is therefore entitled to do business. A government's granting of a charter assumes that the de jure corporation will remain in compliance; however, while unusual, certain circumstances may lead to the revocation of the charter.

INVESTOPEDIA EXPLAINS 'De Jure Corporation'

A de jure corporation is one that is lawfully chartered by a state government, and is recognized as a corporation for all purposes. Du jure is opposed to de facto, which connotes "as a matter of practice not founded on law." A de facto corporation generally acts in good faith but has failed to comply with the technical requirements for becoming a de jure corporation.

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