Final answer:
The charter of Vista West Corporation encompasses the purpose and objectives, the rights and responsibilities of shareholders, and the structure and governance of the corporation, specifying all key elements that define the corporation's existence and operations.
Step-by-step explanation:
The charter of Vista West Corporation specifies all of the above: 1) The purpose and objectives of the corporation, 2) The rights and responsibilities of the shareholders, and 3) The structure and governance of the corporation. These elements are critical because they provide a framework for the operation, control, and accountability of the corporation.
A strong corporate governance structure is essential for the credibility and stability of a corporation. The board of directors, elected by the shareholders, serves as the initial oversight for the company's executives, assuring that the corporation's actions align with shareholder interests. Auditing firms play a vital role in reviewing financial records and certifying their accuracy, while outside investors, especially large shareholders like mutual funds or pension funds, also play a part in corporate governance by exerting influence and ensuring transparency.
The importance of these elements can also be seen in the case of Lehman Brothers, where failures in corporate governance led to inaccurate financial information being provided to investors, which had significant consequences. Thus, the corporate charter aims to establish a robust framework to prevent such failures and ensure the corporation operates with integrity and responsibility towards its stakeholders.