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Corporations play an important role in the economic development of any given society. They are the source of living to many people as well as they provide job opportunities to residents of a given countries. Most of the corporate bodies obtain their powers to carry out their activities out of parliamentary acts. The corporate power in most cases is usually misused resulting to social and economic problems.

Excess corporation power has been in the recent years blamed for the rising of tax evasion. This can be seen especially in countries with weak governance institutions, for example in African countries where governments are losing billions of dollars in terms of taxes. This became possible by collision between revenue officers and managers of corporate bodies. This has lead to corruption in government institutions and this has slowed down economic growth in many countries. Social problems have also been caused by misuse of corporate power. Advertisements, which advocates for immoral practices are the order of the day. Corporations are no longer concerned with moral values as their sole goal is to earn profit. For example, most advertisements advocate for sex which in most societies it something that should be allowed only to those who are in marriage.

If corporate power is misused, it should be revoked to avoid social and economic problems. Corporate power for instance should be revoked when it continually violates the laws of a given country. Secondly, a corporation charter can also be revoked when the company has been formed for purpose of evading payment of taxes. Thirdly, the charter of a corporation can be revoked when a company has been involved in fraud activities. There are other circumstances when a corporate charter can be revoked. The above cases are the main ones. Therefore, it is sound to revoke the charter, which gives a corporation power to carry out its activities, if it is involved in creation of social and economic problems.

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