Early Charters

The English East
India Company:
Early Charters
INTRODUCTION
 British monarch granted a 15 year monopoly to a group of 216 nobles

and an assortment of traders in regards to any and all trade with the
"Indies", essentially the modern-days states of China, India, Pakistan,
Bangladesh, Myanmar, Nepal, Sri Lanka, the Maldives, and also
Thailand, Cambodia, Laos, Brunei, Singapore, the Philippines, East
Timor, Malaysia and Indonesia.
 It was not the first such company - a Russia Company had been formed
in 1553.
 Similarly, for centuries, municipalities, universities, religious institutions

and regional governments had been enabled by a succession of
English kings and queens to exercise separate legal powers under the
banner of corporations.
 East India Company started a succession of corporations designed to
finance exploration and promote trade with England.
 Other companies soon followed: the Virginia Company in 1609, the

Bermuda Company in 1612, the New England Company of 1620 and
the Hudson's Bay Company in 1670.
 In the result, these common law innovations promoted the refinement

of corporations law to what we know today.
Origin Of East India Company
 In 1599 the English Association of the Merchant Adventurers was

formed to trade with the East. This company (popularly recognized
as the East India Company) got a Royal Charter with her trade
domination in the East through Queen Elizabeth on December
1600.
 In 1608 the English merchants decided to open their first factory at

Surat. Through 1619, they succeed in establishing factories at Agra,
Ahmedabad and Broach.
 In the South, the English established their first factory at Masulipatam in
1611.
 Whereas, in Aramgaon another factory was opened in the year 1636.
 In 1639, they got Madras on lease from the local King. Soon, they
fortified their factories which came to be recognized as Fort St. George.
They had also acquired the island of Bombay in 1668 and fortified it
soon thereafter.
 It was soon to surpass Surat (through 1687) as the head office of the
Company on the west coast.
 They recognized their first factory in Orissa at Hariharpur and Balasore

in 1633.
 In 1651, they got consent to trade at Hugli. Soon they also
opened their factories at Patna (Bihar) and Qasimbazar
(Bengal).
 In 1698, the English acquired the zamindari of Sutanati,

Kalikata and Govindpur, where they built the Fort William.
 Soon it grew into a big city and came to be recognized as

Calcutta.
 Surat remains the English headquarters on the west coast until it is
gradually replaced, between 1672 and 1687, by Bombay (given to
Charles II in 1661 as part of the wedding gift of his Portuguese bride,
Catherine of Braganza, and leased by him to the company in 1668).
 In 1668 a new company under the name of English Company of

Merchants came into being. But luckily both the companies merged
under the title “The United Company of Merchants of England Trading
to the East Indies.”
 Calcutta is eventually selected, in 1690, as the best site for a trading

station in the Ganges delta; it is fortified, as Fort William, in 1696.
 By the end of the 17th century the three English presidencies of
Bombay, Madras and Calcutta are firmly established.
 The English and French were also at war several times during the
English Company’s history.
 The first Carnatic War was fought from 1746 to 1748, the second from
1749 to 1754, and the third from 1757 to 1763.
 The English were victorious in these conflicts, which played a central

role in founding Britain as a strong expatriate power in the Indian
Subcontinent.
 Over the same period the British Royal Navy was built up into a
formidable force which played an undeviating role in the development
of the English Company.
Early Charters
Charter of 1600: East India Company
 The East India Company with its official title as “The Governor and
Company of Merchants of London trading into the East Indies”, was
incorporated in England on 31st December 1600, by a charter of
Queen Elizabeth which settled its constitution, powers and
privileges
 The Company have a life of 15 years
 But the Charter can be revoked by the Crown on 2 years notice if

the trade carried on by it did not appear to be profitable.
 A monopoly of trade (known today as a patent) with all
countries to the east of the Cape of Good Hope and to the
west of the Straits of Magellan.
 Sir James Lancaster commanded the first East India

Company voyage in 1601. As per this charter no other
company was allowed to do business with this geographic
area with out the permission and license from the company.
 The company was not allowed to make any laws which

may go against the English laws or customs.
 The company was supposed to work in democratic manner.

 All its members were to form the General Court which was to
elect annually the Court of Directors consisting of a Governor
and 24 Directors for managing the Company’s affairs.
 The Governor and Directors were to hold office for one year
though they were eligible for re-election.
 The General Court could remove any of them before the expiry
of his term if he did not “demean himself well in his said office”,
and elect a new person to fill the vacancy for the remainder of
the year.
Legislative Powers:-
 Company can make , ordain and constitute laws, orders

and constitutions for the good government of itself, its
servants and for the better advancement and
continuance of its trade and traffic.
 Limited powers:- Punishments were to be in the nature

of fines, forfeiture and imprisonment.
King’s Commission:-
 Company found that the limited powers were useless on the

long voyages to control servants and maintain law and order on
ships.
 Company invoked the crowns prerogative and the commander

in chief got the power to give death punishment to servants by
using the law of martial.
 On 24th January 1601 Queen Elizabeth gave first time this right
to commander in chief Captain Lancaster.
 Using this power first time on 28th Feb. 1616 at Surat Port,
person named as Gregory killed an Englishman and
commander in chief gave him death sentence.

Early Charters

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Early Charters

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The English East

 British monarch granted a 15 year monopoly to a group of 216 nobles

 Similarly, for centuries, municipalities, universities, religious institutions

 Other companies soon followed: the Virginia Company in 1609, the

 In the result, these common law innovations promoted the refinement

 In 1599 the English Association of the Merchant Adventurers was

 In 1608 the English merchants decided to open their first factory at

 Whereas, in Aramgaon another factory was opened in the year 1636.

 They recognized their first factory in Orissa at Hariharpur and Balasore

 In 1698, the English acquired the zamindari of Sutanati,

 Soon it grew into a big city and came to be recognized as

 In 1668 a new company under the name of English Company of

 Calcutta is eventually selected, in 1690, as the best site for a trading

 The English were victorious in these conflicts, which played a central

Charter of 1600: East India Company

 The Company have a life of 15 years

 But the Charter can be revoked by the Crown on 2 years notice if

 Sir James Lancaster commanded the first East India

 The company was not allowed to make any laws which

 The company was supposed to work in democratic manner.

 Company can make , ordain and constitute laws, orders

 Limited powers:- Punishments were to be in the nature

 Company found that the limited powers were useless on the

 Company invoked the crowns prerogative and the commander

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