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Royal Charter

Royal Charter

A Royal Charter is a charter given by a monarch to legitimize an incorporated body, such as a city, company, university or such. In medieval Europe, cities were the only place where it was legal to conduct commerce, and Royal Charters were the only way to establish a city. The year a city was chartered is considered the year the city was "founded", irrespective of whether there was settlement there before. In the United Kingdom and Canada a Royal Charter is a charter granted by the Sovereign on the advice of the Privy Council, which creates or gives special status to an incorporated body. It is an exercise of the Royal Prerogative. At one time a Royal Charter was the only way in which an incorporated body could be formed, but other means such as the registration of a limited company are now available. Among the historic bodies formed by Royal Charter were the British East India Company and the American colonies. Among the 400 or so organisations with Royal Charters are cities, the BBC, Livery Companies, Britain's older universities, professional institutions and charities. A Royal Charter is the manner in which a British town is raised to the rank of British city. Most recently Inverness, Brighton & Hove and Wolverhampton were given their charters to celebrate the millennium, and Preston, Stirling, Newport, Lisburn and Newry to celebrate the Golden Jubilee of Elizabeth II in 2002. Some of the older British universities operate under Royal Charters, which give them the power to grant degrees. The most recent generation of universities were granted this power by the Further and Higher Education Act, 1992 instead. Some other universities operate under Acts of Parliament. The BBC operates under a Royal Charter which lasts for a limited period of ten years, after which it is renewed. Most Royal Charters are now granted to professional institutions and to charities. A Charter is not necessary for them to operate, but one is often sought as a recognition of "pre-eminence, stability and permanence".

External links

- [http://www.privy-council.org.uk/output/page26.asp Privy Council website]
- [http://www.bbc.co.uk/info/bbc/charter.shtml Royal Charter of the BBC]
- [http://www.ppd.bham.ac.uk/policy/charter/charter.htm Charter of the University of Birmingham]
- [http://www.state.ri.us/rihist/richart.htm Royal Charter of Rhode Island (1663)]

Charter

:Alternate use, see charter airline, yacht charter, bare-boat charter or Charter Communications. A charter is a document bestowing certain rights on a town, city, university or institution; sometimes used as a loan of money. The term derives from a root word meaning "paper".

Origin

As John Fiske described in his 1890 treatise on the Origin of Civil Government in the United States: :The word "charter" originally meant simply a paper or written document, and it was often applied to deeds for the transfer of real estate. In contracts of such importance papers or parchment documents were drawn up and carefully preserved as irrefragable evidences of the transaction. And so, in quite significant phrase the towns zealously guarded their charters as the "title-deeds of their liberties." :After a while the word charter was applied in England to a particular document which specified certain important concessions forcibly wrung by the people from a most unwilling sovereign. This document was called Magna Carta, or the "Great Charter," signed at Runnymede, June 15, 1215, by John, king of England.

History

Charters were issued in medieval times by Royal decree, perhaps giving a particular town the right to hold a weekly market, or to levy a toll on a road or bridge.

Legal status

A charter is a legally binding document incorporating an organization or institution and specifying its purpose, remit or bylaws. Organisations such as the Institution of Civil Engineers in the UK is chartered to maintain and advance the science and practice of civil engineering in the UK, and by this charter has the right to regulate the business of civil engineering in the UK; this gives rise to a status of a chartered engineer - one who satisfies the requirements of the charter holding organisation.

Charter schools

In education, charter schools are becoming quite common.

Charter colony

A charter colony is a type of colony that was established by a group of settlers that received a charter.

Charter member

The term charter member refers to a person or group who was among those participating in the creation of any chartered organisation.

External links

- [http://www.pparc.ac.uk/Ap/Mc/Charter.asp The Royal Charter for the Particle Physics and Astronomy Research Council]
- The International [http://www.icharter.org Charter] Organization
- [http://en.constitution.wikicities.com/ Create your own ideological charter] Category:Law

United Kingdom

:For other meanings of the terms "United Kingdom" and "UK" , see United Kingdom (disambiguation) and UK (disambiguation). :For an explanation of terms like England, (Great) Britain and United Kingdom see British Isles (terminology). The United Kingdom of Great Britain and Northern Ireland (usually shortened to the United Kingdom or the UK) is a country located off the north-western coast of continental Europe, surrounded by the North Sea, the English Channel, the Celtic Sea, the Irish Sea, and the Atlantic Ocean. It is composed of four constituent parts: three constituent countries—England, Scotland, and Wales—on the island of Great Britain, and the province of Northern Ireland on the island of Ireland. The border between Northern Ireland and the Republic of Ireland forms the United Kingdom's principal international land border, although there is a nominal frontier with France in the middle of the Channel Tunnel. The UK has several overseas territories and the Crown dependencies of the Isle of Man and the Channel Islands come under the UK's sovereignty. The UK also has close relationships with the fifteen other Commonwealth Realms, as they all share the same head of state. The UK is also one of the largest member states of the European Union and a founding partner of both the UN and NATO.
Terminology

- United Kingdom of Great Britain and Northern Ireland: The official name for the sovereign state
- United Kingdom: an abbreviation of United Kingdom of Great Britain and Northern Ireland
- Britain: an informal term that sometimes means United Kingdom of Great Britain and Northern Ireland and sometimes means Great Britain
- British: an informal term that sometimes means from the United Kingdom of Great Britain and Northern Ireland and sometimes means from Great Britain
- Great Britain (as a geographical term): the largest island of the British Isles
- Great Britain (as a political term): England + Wales + Scotland
- British Isles (as a geographical term): Great Britain + Ireland + many smaller surrounding islands. This term is disputed, please see below.
- Ireland (as a geographical term): the second largest island of the British Isles
- Ireland (as a political term): an abbreviation of the Republic of Ireland, a sovereign state on the island of Ireland
- Northern Ireland: a political region of the United Kingdom of Great Britain and Northern Ireland
- Ulster (as a geographical term): Often used to refer to Northern Ireland. It is derived from the Irish Language term 'Ulad.' It was one of the ancient Irish provinces (the others were Connaught, Leinster and Munster.). Although it is normally used to refer to Northern Ireland, Ulster also (traditionally) includes Counties Cavan, Monaghan and Donegal, which lie in the Republic of Ireland. The term Ulster is often favoured by the Protestant community.
History
Protestant Today's state is the latest of several unions formed over the last 1000 years. Scotland and England have existed as separate unified entities since the 10th century. Wales, under English control since the Statute of Rhuddlan in 1284, became part of the Kingdom of England by the Laws in Wales Act 1535. With the Act of Union 1707, the separate kingdoms of England and Scotland, having shared the same monarch since 1603, agreed to a permanent union as the Kingdom of Great Britain. The Act of Union 1800 united the Kingdom of Great Britain with the Kingdom of Ireland, which had been gradually brought under English control between 1169 and 1691, to form the United Kingdom of Great Britain and Ireland. The United Kingdom of Great Britain and Northern Ireland was formed in 1922, after bitter fighting which echoes down to the current political strife, the Anglo-Irish Treaty partitioned Ireland into the Irish Free State and Northern Ireland, with the latter remaining part of the United Kingdom. As provided for in the treaty, Northern Ireland, which consists of six of the nine counties of the Irish province of Ulster, immediately opted out of the Free State and to remain in the UK. The nomenclature of the UK was changed in 1927 to recognise the departure of most of Ireland, with the current name being adopted. 1927 The United Kingdom, the dominant industrial and maritime power of the 19th century, played a leading role in developing Western world ideas of property, liberty, capitalism and parliamentary democracy - to say nothing of its part in advancing world literature and science. At its zenith, the British Empire stretched over one quarter of the Earth's surface and encompassed a third of its population. The first half of the 20th century saw the UK's strength seriously depleted from the effects of World War I and World War II. The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous nation. The UK has been a member of the European Union since 1973. Its attitude towards further integration is conservative, and there is significant Euroscepticism in UK politics. It has not chosen to adopt the Euro, owing to internal political considerations and the government's judgement of the prevailing economic conditions.
Government and politics
The United Kingdom is a constitutional monarchy, with executive power exercised on behalf of the Queen by the Prime Minister and other cabinet ministers who head departments. The cabinet, including the Prime Minister, and other ministers collectively make up Her Majesty's Government. These ministers are drawn from and are responsible to Parliament, the legislative body, which is traditionally considered to be "supreme" (that is, able to legislate on any matter and not bound by decisions of its predecessors). The UK is one of the few countries in the world today that does not have a codified constitution, relying instead on customs and separate pieces of constitutional law. While the monarch is Head of State and holds all executive power, it is the Prime Minister who is the head of government. The government is answerable chiefly to the House of Commons and the Prime Minister is drawn from this chamber of Parliament by constitutional convention. The majority of cabinet members will be from the House of Commons, the rest from the House of Lords. Ministers do not, however, legally have to come from Parliament, though that is the modern day custom. The British system of government has been emulated around the world - a legacy of the United Kingdom's colonial past - most notably in the other Commonwealth Realms. The Prime Minister is chosen as the MP who can command a majority in the House of Commons - usually the leader of the largest party or, if there is no majority party, the largest coalition. The current Prime Minister is Tony Blair of the Labour Party, who has been in office since 1997. In the United Kingdom the monarch has extensive theoretical powers, but his or her role is mainly, though not exclusively, ceremonial. The monarch is an integral part of Parliament (as the "Crown-in-Parliament") and theoretically gives Parliament the power to meet and create legislation. An Act of Parliament does not become law until it has been signed by the Queen (being given Royal Assent), although no monarch has refused to assent to a bill that has been approved by Parliament since Queen Anne in 1708. Although the abolition of the monarchy has been suggested several times, the popularity of the monarchy remains strong in spite of recent controversies. Support for a British republic usually fluctuates between 15% and 25% of the population, with roughly 10% undecided or indifferent [http://www.mori.com/mrr/2000/c000616.shtml]. The current monarch is Queen Elizabeth II who acceded to the throne in 1952 and was crowned in 1953. Parliament is the national legislature of the United Kingdom. It is the ultimate legislative authority in the United Kingdom, according to the doctrine of parliamentary sovereignty. It is bicameral, composed of the elected House of Commons and the unelected House of Lords, whose members are mostly appointed. The House of Commons is the more powerful of the two houses. The House of Commons has 646 members who are directly elected from single-member constituencies based on population. The House of Lords has 724 members (though this number is not fixed): hereditary peers, life peers, and bishops of the Church of England. The Church of England is the established church of the state in England. established church]] The two largest political parties are the Labour Party and Conservative Party. The UK has long had a two-party system, but in the last 20 years the Liberal Democrats have re-emerged as a large third party. The electoral system used for general elections is first-past-the-post. The constitution of the United Kingdom is un-codified and partially unwritten, which means that no single document regulates how the government works, and unwritten constitutional conventions are used extensively. The constitution is based on the principle that Parliament is the ultimate sovereign body in the country. There has long been a widespread sense of national identity in the Celtic nations. Throughout the late 19th century the UK debated giving Ireland home rule. The Scottish National Party was founded in 1934, and Plaid Cymru (Party of Wales) in 1925. Referenda for devolution succeeded in 1997 for Scotland and Wales and in 1998 for Northern Ireland. In 1999, the Scottish Parliament and the National Assembly for Wales were established, the former having primary legislative power. Proportional representation is used for the elections, which has resulted in a Labour-Liberal Democrat coalition government in Scotland. Due to internal disagreements, the Northern Ireland Assembly has been suspended since 2002.
Subdivisions
The United Kingdom is a country that is divided into four constituent parts:
- England
- Scotland
- Northern Ireland
- Wales The constituent parts of the United Kingdom have administrative subdivisions as follows:
- The regions and administrative counties of England
- The council areas of Scotland
- The counties and county boroughs of Wales
- The districts of Northern Ireland The Laws in Wales Act 1535 incorporated Wales and England into England and Wales for legal purposes. Although all four have historically been divided into counties, England's population is an order of magnitude larger than the others so in recent years it has for some purposes been divided into nine intermediate-level Government Office Regions. Each region is made up of counties and unitary authorities, apart from London, which consists of London boroughs. Although at one point it was intended that each or some of these regions would be given its own regional assembly, the plan's future is uncertain, as of 2004, after the North East region rejected its proposed assembly in a referendum. Scotland consists of 32 Council Areas. Wales consists of 22 Unitary Authorities, styled as 10 County Boroughs, 9 Counties, and 3 Cities. Northern Ireland is divided into 26 Districts. Also sometimes associated with the United Kingdom, though not constitutionally part of the United Kingdom itself, are the Crown dependencies (the Bailiwicks of Jersey and Guernsey, and the Isle of Man) as self-governing possessions of the Crown, and a number of overseas territories under the sovereignty of the United Kingdom.
Military
The armed forces of the United Kingdom are known as the British Armed Forces or Her Majesty's Armed Forces, officially the Armed Forces of the Crown. Their Commander-in-Chief is the Queen and they are managed by the Ministry of Defence. Ministry of Defence The British Armed Forces are charged with protecting the United Kingdom and its overseas territories, promoting the United Kingdom's wider security interests, and supporting international peacekeeping efforts. They are active and regular participants in NATO and other coalition operations. The United Kingdom fields one of the most powerful and comprehensive military forces in the World. Its global power projection capabilities are second only to those of the United States Armed Forces. The British Army had a reported strength of 112,700 in 2004, including 7,600 women, and the Royal Air Force a strength of 53,400. The 40,900-member Royal Navy is in charge of the United Kingdom's independent strategic nuclear arm, which consists of four Trident Ballistic Missile Submarines, while the Royal Marines provide infantry units for amphibious assault and for specialist reinforcement forces in and beyond the NATO area. This puts total active duty military troops in the 210,000 range, currently deployed in over 80 countries. The UK's special forces, principally the SAS, provides elite commandos trained for quick, mobile, military responses; often where secrecy or covert operations are required. The Royal Navy is the second largest navy in the World in terms of gross tonnage. Despite the United Kingdom's wide ranging capabilities, recent pragmatic defence policy has a stated assumption that any large operation would be undertaken as part of a coalition. Bosnia, Kosovo, Afghanistan, Iraq (Granby, No-Fly-Zones, Desert Fox and Telic) may all be taken as precedent - indeed the last true war in which the British military fought alone was the Falklands War of 1982, in which military action was initiated by Argentina and the UK was fighting a defensive, rather than offensive, campaign. The British army has been actively involved in the Troubles in Northern Ireland. However, a programme of demilitarisation is being gradually implemented.
Geography
Troubles World Factbook Map of the United Kingdom]] Most of England consists of rolling lowland terrain, divided east from west by more mountainous terrain in the Northwest (Cumbrian Mountains of the Lake District) and north (the upland moors of the Pennines) and limestone hills of the Peak District by the Tees-Exe line. The lower limestone hills of the Isle of Purbeck, Cotswolds, Lincolnshire and chalk downs of the Southern England Chalk Formation. The main rivers and estuaries are the Thames, Severn and the Humber Estuary. The largest urban area is Greater London. Near Dover, the Channel Tunnel links the United Kingdom with France. There is no peak in England that is 1000 metres (3,300 ft) or greater. Wales is mostly mountainous, the highest peak being Snowdon at 1085 metres (3,560 ft) above sea level. North of the mainland is the island of Anglesey. The largest and capital city is Cardiff, located in South Wales. Scotland's geography is varied, with lowlands in the south and east and highlands in the north and west, including Ben Nevis, the UK's highest mountain at 1343 metres (4,406 ft). There are many long and deep-sea arms, firths, and lochs. A multitude of islands west and north of Scotland are also included, notably the Hebrides, Orkney Islands and Shetland Islands. The largest city is Glasgow. Northern Ireland, making up the north-eastern part of Ireland, is mostly hilly. The main cities are Belfast ('Beal Feirste' in Irish) and Londonderry / Derry ('Doire' in Irish). The province is home to one of the UK’s World Heritage Sites, the Giant's Causeway, which consists of more than 40,000 six-sided basalt columns up to 40 feett (12 m) high. In total it is estimated that the UK includes around 1098 small islands, some being natural and some being crannogs, a type of artificial island which was built in past times using stone and wood, gradually enlarged by natural waste building up over time.
Economy
artificial island The United Kingdom, a leading trading power and financial centre, has an essentially capitalist economy, the fourth largest in the world in terms of market exchange rates and the sixth largest by purchasing power parity (PPP) exchange rates. Over the past three decades, the government has greatly reduced public ownership by means of privatisation programmes, and has contained the growth of the Welfare State. Agriculture is intensive, highly mechanised, and efficient by European standards, producing about 60% of food needs with only 1% of the labour force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial state. Services, particularly banking, insurance and business services, account for by far the largest proportion of GDP. Industry continues to decline in importance, although the UK is still Europe's largest manufacturer of armaments, petroleum products, personal computers, televisions, and mobile telephones. Tourism is also important: with over 24 million tourists a year, between China (33) and Austria (19.1), the United Kingdom is ranked as the sixth major tourist destination in the world. The Blair government has put off the question of participation in the Euro system, citing five economic tests that would need to be met before they recommend that the UK adopts the Euro, and hold a referendum.
Society

Demographics
At the April 2001 census, the United Kingdom's population was 58,789,194, the third-largest in the European Union (behind Germany and metropolitan France) and the twenty-first largest in the world. Its overall population density is one of the highest in the world. Almost one-third of the population lives in England's prosperous south-east and is predominantly urban and suburban--with about 7.2 million in the capital of London. The United Kingdom's high literacy rate (99%) is attributable to universal public education introduced for the primary level in 1870 and secondary level in 1900 (except in Scotland where it was introduced in 1696). Education is mandatory from ages five through sixteen. referendum The Church of England and the Church of Scotland function as the official national religions in their respective countries, but most religions found in the world are represented in the United Kingdom. Anglicanism is the state religion that has been established in England since 1534 during the reign of King Henry VIII. During his reign, England broke ties with the Roman Catholic church and established the Church of England as the offical religion of England. Reforms to the nature of the church's relationship to the state have been ongoing, especially concerning the nature of the House of Lords and the appointment of a fixed amount of the lordships going to Lords Temporal, bishops of the Church of England. A group of islands close to continental Europe, the British Isles have been subject to many invasions and migrations, especially from Scandinavia and the continent, including Roman occupation for several centuries. Contemporary Britons are descended mainly from the varied ethnic stocks that settled there before the eleventh century. The pre-Celtic, Celtic, Roman, Anglo-Saxon, and Norse influences were blended on Great Britain under the Normans, Scandinavian Vikings who had lived in Northern France. Although Celtic languages persist in Wales, Scotland, and Northern Ireland, the predominant language is English, which is a West Germanic language descended from Old English, featuring a large amount of borrowings from Norman French.The other indigenous languages include the Celtic languages; Welsh, the closely related Irish and Scots Gaelic, and the Cornish language; as well as Lowland Scots, which is closely related to English; Romany; and British Sign Language (Northern Ireland Sign Language is also used in Northern Ireland). Celtic dialectal influences from Cumbric persisted in Northern England for many centuries, most famously in a unique set of numbers used for counting sheep. Recent immigrants, especially from the Commonwealth, speak many other languages, including Bengali, Cantonese, Hindi, Punjabi and Urdu. The United Kingdom has the largest number of Hindi speaking peoples outside of the Indian sub continent.
Culture
Urdu The United Kingdom contains many of the world's leading universities, including the University of Cambridge, the University of Oxford and the University of London (which incorporates, amongst others, Imperial College and University College London), and has produced many great scientists and engineers including Sir Isaac Newton, Charles Darwin and Isambard Kingdom Brunel; the nation is credited with many inventions including the locomotive, vaccination, television, vacuum, and both the internal combustion and the jet engine. The English language has spread to all corners of the world (primarily because of the country’s empire) and is referred to as a ‘global language’. It is now taught as a second language more than any other around the world. Over the next few decades, it is estimated that approximately half the world’s population will be proficient in the language. Playwright William Shakespeare is arguably the most famous writer in the history of the English language; other well-known writers from the United Kingdom include the Brontë sisters (Charlotte, Emily, and Anne), Jane Austen, William Thackeray, J. R. R. Tolkien, John Milton, H. G. Wells and Charles Dickens. Important poets include Lord Byron, Robert Burns, Lord Tennyson and William Blake. Notable composers from the United Kingdom have included William Byrd, John Taverner, William Lawes, John Dowland, Thomas Tallis, and Henry Purcell from the 16th and early 17th centuries, and, more recently, Sir Edward Elgar, Sir Arthur Sullivan (most famous for working with librettist Sir W. S. Gilbert), Ralph Vaughan Williams and Benjamin Britten in the 19th and 20th. George Frideric Handel spent most of his composing life in England. The BBC is the oldest and perhaps the most respected broadcasting network on the globe, with the BBC World Service radio channel and its news output held in particularly high regard. The other main television networks are ITV, Channel 4, five (TV) and Sky Television. Popular programmes in the UK include the three soaps Eastenders, Coronation Street and Emmerdale, as well as the comedy news quiz Have I Got News For You and Reality TV shows Big Brother and The X Factor. Various British TV formats have been exported to other nations, notably Who Wants To Be A Millionaire?, The Weakest Link and The Office. The UK was, with the US, one of the two main contributors in the development of rock and roll, and the UK has provided some of the most famous rock stars, including the Beatles, Queen, Led Zeppelin, Pink Floyd, the Rolling Stones, The Who and many others. The UK was at the forefront of punk rock music in the 1970s with bands such as the Sex Pistols and The Clash, and the subsequent rebirth of heavy metal with bands such as Motörhead and Iron Maiden. In mid to late '90s, the Britpop phenomenon has seen bands such as Oasis, Blur, Radiohead and Coldplay gain international fame. The UK is also at the forefront of electronica, with British artists such as Aphex Twin, Talvin Singh, Nitin Sawhney and Lamb at the cutting edge. The United Kingdom was also associated with music from the Caribbean, with a large number of Jamaicans and other Caribbean nationals being present in the UK.
Sport
A great number of major sports originated in the United Kingdom, including football, golf, cricket, rugby, tennis and boxing. The national sport of the UK is association football, but the UK does not compete as a nation in any major football tournament. Instead, the home nations compete individually as England, Wales, Scotland and Northern Ireland. It is because of this unique four-team arrangement that the UK currently does not compete in football events at the Olympic Games. However, a united team will probably take part in the 2012 Summer Olympic Games, as these are hosted in London. The English and Northern Irish football associations have confirmed participation in this team while the Scottish FA and the Welsh FA have declined to participate. The UK also hosts many world-renowned football clubs, such as Manchester United, Liverpool, Chelsea and Arsenal in England and Rangers and Celtic in Scotland. Clubs compete in national leagues and competitions and some go on to compete in European competitions. Both forms of rugby are national sports. Rugby League originates from and is generally played in the North of England, whilst Rugby Union is played all over Britain. In Rugby League the UK plays as one nation - Great Britain - whilst in union it is represented by the four nations. England are the current holders of the Rugby Union World Cup. Every four years the British and Irish Lions (comprising the best players from England, Scotland, Wales and Ireland) tour other countries. Cricket is also played in the UK, although it is focussed in England. The Wimbledon Championships are an international tennis event held in Wimbledon in south London every summer and are seen as the most prestigious of the tennis calendar. Golf is one of the most popular participation sports played in the UK and St Andrews in Scotland is the sport's home course.
Miscellaneous topics

External links

- [http://www.bbc.co.uk/history/state/nations/ BBC Nations] History of the nations within the UK.
- [http://www.bbc.co.uk British Broadcasting Corporation (BBC)]
- [http://www.cia.gov/cia/publications/factbook/geos/uk.html CIA World Factbook: UK.]
- [http://www.direct.gov.uk Gateway to UK governmental services and websites.]
- [http://www.number-10.gov.uk Number 10 Downing Street]
- [http://www.statistics.gov.uk Office of National Statistics]
- [http://www.opsi.gov.uk Office of Public Sector Information] Source for all UK legislation 1987-present (successor to Her Majesty's Stationery Office).
- [http://www.macs.hw.ac.uk/britishisles/ The British Isles] Independent view of the UK.
- [http://www.royal.gov.uk The British Monarchy]
- [http://www.parliament.uk/ The United Kingdom Parliament]
- [http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=5703&Pos=&ColRank=1&Rank=272 Official Yearbook of the UK] factbook produced by the Office for National Statistics (years 2000 to 2005 available online).
- [http://www.ukcities.co.uk UK Cities] lists a variety of useful resources for every city in the UK.
- [http://www.justuk.org UK travel guide] United Kingdom for travellers.
- [http://www.world66.com/europe/unitedkingdom World66 Guide to United Kingdom] A travel guide written by its users.
- [http://www.multimap.co.uk www.multimap.co.uk] provides online maps and aerial photographs of the UK.
- [http://www.streetmap.co.uk www.streetmap.co.uk] an alternative to multimap.
- [http://www.freeworldmaps.net/europe/united-kingdom/map.html Physical map of United Kingdom.]
- [http://www.upmystreet.com www.upmystreet.com] detailed localised information about places in the United Kingdom.
- [http://www.parks.it/world/UK/Eindex.html UK Parks] National parks, Areas of Outstanding Natural Beauty and other protected areas. ----
Category:British Isles Category:European countries Category:European Union member states Category:Members of the Commonwealth of Nations Category:Monarchies A als:Grossbritannien und Nordirland zh-min-nan:Liân-ha̍p Ông-kok ko:영국 ms:United Kingdom ja:イギリス simple:United Kingdom th:สหราชอาณาจักร

Charter

Origin

History

Charters were issued in medieval times by Royal decree, perhaps giving a particular town the right to hold a weekly market, or to levy a toll on a road or bridge.

Legal status

Charter schools

In education, charter schools are becoming quite common.

Charter colony

A charter colony is a type of colony that was established by a group of settlers that received a charter.

Charter member

The term charter member refers to a person or group who was among those participating in the creation of any chartered organisation.

External links

Corporation

A corporation is a legal entity (distinct from a natural person) that often has similar rights in law to those of a natural person. Civil law systems may refer to corporations as "moral persons;" they may also go by the name "AS" (anonymous society) or something similar, depending on language (see below). In colloquial usage, "corporation" usually refers to a commercial entity set up in accordance with a governmental framework. Churches (mainly in US, but not so much in other countries, where Churches have a different status), interest groups (both can form as not-for-profit corporations or can exist as voluntary associations), cities and townships (often chartered as public corporations), among others, may also have historically lengthy corporate identities.

Legal status

The law typically views a corporation as a fictional person, a legal person, or a moral person (as opposed to a natural person); United States law recognises this as corporate personhood. Under such a doctrine (obviously a legal fiction), a corporation enjoys many of the rights and obligations of individual citizens, such as the ability to own property, sign binding contracts, pay taxes, have certain constitutional rights, and otherwise participate in society. (Note that corporations do not possess all the rights appertaining to individuals: in most jurisdictions, for example, a corporation cannot vote.) In common law countries, the classic statement of this principle is found in Lennard's Carrying Co Ltd v Asiatic Petroleum Co Ltd [1915], where Lord Haldane said: :"My Lords, a corporation is an abstraction. It has no mind of its own any more than it has a body of its own; its active and directing will must consequently be sought in the person of somebody who is really the directing mind and will of the corporation, the very ego and centre of the personality of the corporation." The most salient features of incorporation include: #Limited Liability. Unlike in a partnership, stockholders of a corporation hold no liability for the corporation's debts and obligations: see leading case in common law, Salomon v. Salomon & Co.. As a result their "limited" potential losses cannot exceed the amount which they paid for the stock. Not only does this allow corporations to engage in risky enterprises, but limited liability also forms the basis for trading in corporate stock. Without the limitation on the amount that an investor can lose, the time and effort required to determine whether the stock could wipe the investor out would render the stock market very illiquid (as one can observe in the very illiquid market for partnership interests). A lender can, however, require a personal guarantee on a loan to a corporation, thus introducing personal liability. #Perpetual Lifetime. The assets and structure of the corporation exist beyond the lifetime of any of its shareholders, officers or directors. This allows for stability of capital, which thus becomes available for investment in projects of a larger size and over a longer term than if the corporate assets remained subject to dissolution and distribution. This feature also had great importance in the medieval period, when land donated to the Church (a corporation) would not generate the feudal fees that a lord could claim upon a landholder's death. In this regard, see Statute of Mortmain. #Profit Maximization. In Anglo-American jurisdictions, business corporations are generally required to serve the best interests of the shareholders, a rule that courts have generally interpreted to mean the maximization of share value, and thus profits. Corporate directors are prohibited by corporate law from sacrificing profits to serve some other interest. Originally this included such areas as environmental protection, or the improvement of the welfare of the community. For example, when Henry Ford cut dividends and reduced car prices in order to increase the number of people who could afford to buy his cars, his brother-in-law, Mr. Dodge, a shareholder, sued him for having harmed profitability: Dodge v. Ford Motor Company, 170 N.W 688 (Mich.S.C. 1919). Mr. Dodge succeeded and went on to form his own car company with the proceeds of the suit. However, modern law by statutes and court decisions holds that a corporation does have an implied authority to make charitable contributions to society.

Ownership and control

Humans and other legal entities (such as trusts and other corporations) can hold shares. When no stockholders exist, a corporation may exist as a "non-stock corporation", a "membership corporation", or similar — this second type of corporation counts as a not-for-profit corporation. In either category, the corporation comprises a collective of individuals with a distinct legal status and with special privileges not vouchsafed to ordinary unincorporated businesses, to voluntary associations, or to groups of individuals. Typically, a board of directors governs a corporation on the stockholders' behalf. The board has a fiduciary duty to look after the interests of the corporation. The corporate officers such as the CEO, president, treasurer, and other titled officers are chosen by the board to manage the affairs of the corporation. Corporations can also be controlled (in part) by creditors such as banks. In return for lending money to the corporation, creditors can demand a control interest analogous to that of a shareholder, including one or more seats on the board of directors. Creditors are not said to "own" the corporation as shareholders do, but can outweigh the shareholders in practice, especially if the corporation is experiencing financial difficulties and cannot survive without credit. Shareholders in a corporation are said to have a "residual interest." Should the corporation end its existence, the shareholders are the last to receive its assets, following creditors and others with interests in the corporation. This can make investment in a corporation risky; however, the risk is outweighed by the corporation's limited liability, which ensures that the shareholder will only be liable for the amount they invested.

Formation

Historically, corporations were created by special charter of state governments. Today, corporations are usually registered with a state, and become regulated by the laws enacted by that state. Registration is the main prerequisite to the corporation's assumption of limited liability. As part of this registration, it must designate the principal address of the corporation (where to contact it in the event of legal process), and often an agent or other legal representative of the corporation. Generally, a corporation files articles of incorporation with the government, laying out the general nature of the corporation, the amount of stock it is authorized to issue, and the names and addresses of directors. Once the articles are approved, the corporation's directors meet to create bylaws that govern the internal functions of the corporation, such as meeting procedures and officer positions. The law of the state in which a corporation operates will regulate most of its internal activities, as well as its finances. If a corporation operates outside its home state, it is often required to register with other governments as a foreign corporation, and is almost always subject to laws of its host state pertaining to employment, crimes, contracts, civil actions, and the like.

Naming

Corporations generally have a distinct name. Historically, corporations were named after their membership: for instance, "The President and Fellows of Harvard College." Nowadays, corporations in most jurisdictions have a distinct name that does not need to make reference to their membership. In Canada, this possibility is taken to its logical extreme: many smaller Canadian corporations have no names at all, merely numbers (e.g., "Ontario 123-4567 Limited"). In most countries, corporate names include the term "Corporation", or an abbreviation that denotes the corporate status of the entity. See Types of corporations for a full list. These terms, known as words of limitation, obviously vary by jurisdiction and language. Their use puts all persons on constructive notice that they have to deal with an entity whose liability remains limited, in the sense that it does not reach back to the persons who constitute the entity; one can only collect from whatever assets the entity still controls at the time one obtains a judgment against it. Certain jurisdictions do not allow the use of the word "company" alone to denote corporate status, since the word "company" may refer to a partnership or to a sole proprietorship, or even, archaically, to a group of not necessarily related people (for example, those staying in a tavern).

Unresolved issues

The nature of the corporation continues to evolve, both through existing corporations pushing new ideas and structures, and governments regulating them in response to new situations. A current question is that of diffused responsibility: for example, if the corporation is found liable for a death, then how should the blame and punishment for this be allocated across the shareholders, directors, management and staff of the corporation? The present law diffuses this responsibility. One may think that the owners of the business - the shareholders - should be ultimately responsible for such circumstances, but the modern corporation may have many millions of small-scale shareholders who know nothing about its business activities. Worse still, traders - especially hedge funds - may rapidly turn over their partial ownership of a corporation many times a day. One suggestion is that the directors should be passed the burden of moral and legal responsibility as part of their job of representing the shareholders. This is currently an active area of debate.

Origins

Etymology

The word "corporation" derives from the Latin corpus (body), representing a "body of people"; that is, a group of people authorized to act as an individual (Oxford English Dictionary). The word universitas also used to refer to a group of people but now refers specifically to a group of scholars (see University). In the United Kingdom and Republic of Ireland, the term corporation was also used for the local government body in charge of a borough. This style was replaced in most cases with the term council in the United Kingdom in 1973, and in the Republic of Ireland in 2001. The sole exception is the Corporation of London which retains the title.

Pre-modern corporations

Corporations have been present in some forms as far back as Ancient Rome. Although devoid of some of the core characteristics by which corporations are known today, they nonetheless were enterprises, sanctioned by the state, with a form of shareholders who invested money for a specific purpose. With the collapse of the Roman Empire, the rise of Christianity and the influx of Germanic tribes, the Roman conception of the corporation merged with other views. Germanic tribes, for example, maintained that a group entity in and of itself could have a separate identity from that of its members. These influences came together in the body of canon law built around the conception of the church as corporate structure in the Middle Ages. Different theories of the church as corporate body were favored by different individuals but all agreed on one key component: that the church was more than just its members and could maintain an existence perpetually, regardless of the death of any individual member. This, together with discussion as to the relationship between the head of a corporation (such as the Pope) and its members, contributed not only to the development of modern corporations and corporate theory but also set the stage for many ideas that would come to fruition during the enlightenment. Kenneth Pomeranz, an economic historian, argues that the need to perform pseudo-governmental operations (such as the waging of war) accounts for the development of this economic structure in Europe but not in China or in the Middle East. Older corporate entities gained incorporation as "the person/people of xx". This reflected the people who made up the "body" and also emphasised their legal identity. The law classifies a corporation either as a corporation sole (one person) or as a corporation aggregate (any other number). Examples include (the link gives the legal name; the nickname appears in brackets with the nature of the corporation)
- The Governor and Company of the Bank of England (Bank of England — corporation aggregate)
- The Chancellor Masters and Scholars of the University of Cambridge (Cambridge University — corporation aggregate)
- The President and Fellows of Harvard College (Harvard College — corporation aggregate)
- Her Majesty the Queen in Right of New Zealand (New Zealand Government — corporation sole)
- The Archbishop of Canterbury (corporation sole)
- The Dean, Chapter and Students of the Cathedral Church of Christ in Oxford of the Foundation of King Henry VIII (Christ Church, Oxford — corporation aggregate) Using strict definitions, universities and colleges count as corporations since they merely comprise groups of people.

Development of modern commercial corporations

college, dating from 7 November 1623, for the amount of 2,400 florins]] Early corporations of the commercial sort were formed under frameworks set up by governments of states to undertake tasks which appeared too risky or too expensive for individuals or governments to embark upon. The alleged oldest commercial corporation in the world, the Stora Kopparberg mining community in Falun, Sweden, reportedly obtained a charter from King Magnus Eriksson in 1347. Many European nations chartered corporations to lead colonial ventures, such as the Dutch East India Company, and these corporations came to play a large part in the history of corporate colonialism. In the United States, government chartering began to fall out of vogue in the mid-1800s. Corporate law at the time was very restrictive and very closely regulated by the states. Forming a corporation usually required an act of legislature. Investors generally had to be given an equal say in corporate governance, and the corporation's activities were tightly restricted to its express purposes. Many private firms in the 19th century avoided the corporate model for these reasons (Andrew Carnegie formed his steel operation as a limited partnership, and John D. Rockefeller set up Standard Oil as a trust). Eventually, state governments began to realize the economic value of providing more permissive corporate laws. New Jersey was the first state to adopt an "enabling" corporate law, with the goal of attracting more business to the state. Delaware followed, and soon became known as the most corporation-friendly state in the country; even today, most major public corporations are set up under Delaware law. The 20th century saw a proliferation of enabling law across the world, which helped to drive economic booms in many countries before and after World War I. After World War II, and especially starting in the 1980s, many countries with large state-owned corporations moved toward privatization, the selling of publicly-owned services and enterprises to private, normally corporate, ownership. Deregulation - reducing the public-interest regulation of corporate activity - often accompanied privatization as part of an ideologically laissez-faire policy. Another major postwar shift was toward conglomerates, in which large corporations purchased smaller corporations to expand their industrial base. Japanese firms developed a horizontal conglomeration model, the keiretsu, which was later duplicated in other countries as well. While corporate efficiency (and profitability) skyrocketed, small shareholder control was diminished and directors of corporations assumed greater control over business, contributing in part to the hostile takeover movement of the 1980s and the accounting scandals that brought down Enron and WorldCom following the turn of the century. More recent corporate developments include downsizing, contracting-out or out-sourcing, off-shoring and scoping down activities to core business, as information technology, global trade regimes, and cheap fossil fuels enable corporations to reduce labour costs, transportation costs and transaction costs, and thereby maximize profits. For a history of corporations that is “pro-corporate”, see John Micklethwait and Adrian Wooldridge, The Company: a Short History of a Revolutionary Idea (New York: Modern Library, 2003). For a history of corporations that is “critical”, see Joel Bakan, The Corporation. The pathological pursuit of profit and power (Toronto: Viking Canada, 2004).

Types of corporations

For-profit and non-profit

Main article: non-profit organization In modern economic systems, the corporate conventions of governance commonly appear in a wide variety of business and non-profit activities. Though the laws governing these creatures of statute often differ, the courts often interpret provisions of the law that apply to profit-making enterprises in the same manner (or in a similar manner) when applying principles to non-profit organizations — as the underlying structures of these two types of entity often resemble each other.

Closely-held and public

The institution most often referenced when the word "corporation" is used, as in the title of the movie The Corporation, is a public or publicly traded corporation, the shares of which are traded on a public market (e.g., the New York Stock Exchange or Nasdaq) designed specifically for the buying and selling of shares of stock of corporations by and to the general public. Most of the largest businesses in the world are publicly traded corporations. However, the majority of corporations are said to be closely held, privately held or close corporations, meaning that no ready market exists for the trading of ownership interests. Many such corporations are owned and managed by a small group of businesspeople or companies, although the size of such a corporation can be as vast as the largest public corporations. The affairs of publicly traded and closely held corporations are similar in many respects. The main difference in most countries is that publicly traded corporations have an additional burden of complying with securities laws, which (especially in the U.S.) grant further rights to stockholders to protect them from fraud or unfairness in connection with the sale and purchase of stock. The publicly traded corporation must usually follow much more stringent disclosure requirements, and sometimes additional procedural obligations in connection with major transactions (e.g. mergers) or events (e.g. elections of directors).

Multinational corporations

Following on the success of the corporate model at a national level, many corporations have become transnational or multinational corporations: growing beyond national boundaries to attain sometimes remarkable positions of power and influence in the process of globalising. The typical "transnational" or "multinational" may fit into a web of overlapping ownerships and directorships, with multiple branches and lines in different regions, many such sub-groupings comprising corporations in their own right. Growth by expansion may favour national or regional branches; growth by acquisition or merger can result in a plethora of groupings scattered around and/or spanning the globe, with structures and names which do not always make clear the structures of ownership and interaction. In the spread of corporations across multiple continents, the importance of corporate culture has grown as a unifying factor and a counterweight to local national sensibilities and cultural awareness.

National features

There are various types of corporations throughout the world.

United States

In the United States, several corporate forms exist; the name of "corporation" generally applies to a business, run for profit, to which one of the states of the United States has granted a corporate charter. American corporations often charter as a Delaware Corporation in Delaware, which charges no tax on activities outside the state and has courts experienced in commercial law. Corporations set up for privacy or asset protection often charter in Nevada, which allows setting them up with no record of who owns them. The federal government of the United States usually does not grant corporate charters, except for some special instances such as Amtrak and Freddie Mac and banks and credit unions which opt not to receive charters from their home states. Historically, most U.S. states issued charters for fixed lengths of time (for example, a manufacturing corporation might receive a charter good for 40 years), and only by an act of the legislature. In theory, a limited charter forced corporations to remain accountable to government (that is, to the community) for the special privileges granted to them. Investors protested that it actually led to unhealthy amounts of political payoffs and graft. Most states now charter unlimited-term corporations for a small fee, and possibly for a yearly tax. Legally, corporations are accorded some corporate personhood, i.e. Constitutional rights similar to those held by persons. The U.S. Supreme Court ruled on this question in the 1886 case Santa Clara County v. Southern Pacific Railroad. Many countries around the world now have corporate laws based upon state laws from the United States. For example, corporations in Japan are organized under a variant of the corporate law of Illinois, and corporations in Saudi Arabia follow corporate laws copied from New York. The oldest corporation in the United States, and the oldest in North America, is the President and Fellows of Harvard College (also known as the Harvard Corporation), chartered in 1650.

Canada

In Canada both the federal government and the provinces have corporate statutes, and thus a corporation may have a provincial or a federal charter. Many older corporations in Canada stem from Acts of Parliament passed before the introduction of general corporation law. The oldest corporation in Canada, and second oldest in North America, is the Hudson's Bay Company, chartered in 1670. Federally recognized corporations are regulated by the Canada Business Corporations Act

German-speaking countries

Germany, Austria and Switzerland recognize two forms of corporation: the Aktiengesellschaft (AG), analogous to public corporations in the English-speaking world, and the Gesellschaft mit beschränkter Haftung (GmbH), similar to (and an inspiration for) the modern limited liability company.

Corporate taxation

In many countries, including the United States and United Kingdom, corporate profits are taxed at a corporate tax rate, and dividends paid to shareholders are taxed at a separate rate. Such a system is sometimes referred to as "double taxation," because any profits distributed to shareholders will eventually be taxed twice. One solution to this (as in the case of UK tax system) is for the recipient of the dividend to be entitled to a tax credit which addresses the fact that the profits represented by the dividend have already been taxed. The company profit being passed on is therefore effectively only taxed at the rate of tax paid by the eventual recipient of the dividend. Where a double taxation system exists, the additional tax burden is often an incentive for smaller businesses to organize in the form of a partnership, limited liability company, or other type of entity that is not separately taxed. Such entities are often called "pass-through entities." In the United States, business corporations owe taxes according to two basic categories. A "C corporation" must pay corporate taxes, while "S corporations" pay no corporate taxes but instead pass profits and losses directly to their owners (the stockholders) who declare such profits and losses as part of their personal taxable income. An S corporation must generally have no more than 100 stockholders, who must be natural persons (not other corporations or entities), must reside in the United States, and must consent to the classification; moreover, the S corporation can only issue a single class of stock. As a result of these restrictions, all publicly traded corporations and many larger close corporations have C corporation status. Certain kinds of investment companies are also exempt from corporate income taxes, provided they distribute almost all of their income to shareholders in the form of dividends or capital gains distributions.

Other commercial entities

Several other forms of business entity exist under the laws of various countries. These include:
- Partnership
- Limited partnership (LP)
- Limited liability partnership (LLP)
- Limited liability company (LLC)
- Sole proprietorship

Quotes

- Corporations have neither bodies to be punished, nor souls to be condemned, they therefore do as they like. —Lord Thurlow
- An ingenious device for obtaining individual profit without individual responsibility. —"Corporation" as defined by Ambrose Bierce in The Devil's Dictionary
- The opinion of the Court, after mature deliberation, is that this [a corporate charter] is a contract, the obligation of which cannot be impaired without violating the Constitution of the United States. —Chief Justice John Marshall, Dartmouth College v. Woodward (1819).

External links

- [http://www.econlib.org/library/Enc/Corporations.html Corporations] — article by Robert Hessen
- [http://www.company-formation-glossary.co.uk Company Formation Glossary]
- [http://www.ukcorporator.co.uk/guidance/G59.php Standard UK Company Formation Configurations]
- [http://www.gangsofamerica.com/ Gangs of America by Ted Nace] — A free book on historical and legal bases of Corporations Category:Business law Category:Corporations law Category:Legal entities Category:Types of companies ko:주식회사 ja:株式会社

British East India Company

The British East India Company, sometimes referred to as "John Company", was a joint-stock company of investors, which was granted a Royal Charter by Elizabeth I on December 31, 1600, with the intent to favour trade privileges in India. The Royal Charter effectively gave the newly created Honourable East India Company a monopoly on all trade in the East Indies. The Company transformed from a commercial trading venture to one which virtually ruled India as it acquired auxiliary governmental and military functions, until the Company's dissolution in 1858. As Adam Smith wrote, "The difference between the genius of the British constitution which protects and governs North America, and that of the mercantile company which oppresses and domineers in the East Indies, cannot perhaps be better illustrated than by the different state of those countries." Adam Smith in the corner, and the stripes possibly inspired the Stars and Stripes.]]

Flags

Image:EICFlagDownman.jpg|Downman (1685) Image:EICFlagLens.jpg|Lens (1700) Image:EICFlagRees.jpg|Rees (1820) Image:EICFlagLaurie.jpg|Laurie (1842) The East India Company flag changed over time. From the period of 1600 to 1707 (Act of Union - England and Scotland) the flag consisted of a St George's cross in the canton and a number of alternating Red and White stripes. After 1707 the canton contained the original Union Flag consisting of a combined St George's cross and a St Andrew's cross. After the Act of Union in 1800, that joined Ireland into the United Kingdom, the canton of the East India Company's flag was altered accordingly to include the new Union Flag; with the additional St Patrick's cross. There has been much debate and discussion regarding the number of stripes on the flag and the order of the stripes. Historical documents and paintings show many variations from 9 to 13 stripes, with some images showing the top stripe being red and others showing the top stripe being white. At the time of the American revolution the East India Company flag would have been identical to the Grand Union Flag. The flag probably inspired the Stars and Stripes (as argued by Sir Charles Fawcett in 1937). [http://www.crwflags.com/fotw/flags/gb-eic2.html] Comparisons between the Stars and Stripes and the Company's flag from historical records present some convincing arguments. The John Company flag dates back to the 1600s whereas the United States adopted the Stars and Stripes in 1777[http://www.kimber.org/flag/index.htm].

Impact

Based in Leadenhall Street, London, the company presided over the creation of the British Raj. In 1717, the Company received a royal dictate from the Mughal Emperor exempting the Company from the payment of custom duties in Bengal, giving it a decided commercial advantage in the Indian trade. A decisive victory by Sir Robert Clive at the Battle of Plassey in 1757 established the British East India Company as a military as well as a commercial power. By 1760, the French were driven out of India, with the exception of a few trading posts on the coast, such as Pondicherry. The Company also had interests along the routes to India from Great Britain. As early as 1620, the company attempted to lay claim to the Table Mountain region in South Africa, later it occupied and ruled St Helena. The Company also established Hong Kong and Singapore; employed Captain Kidd to combat piracy; and cultivated the production of tea in India. Other notable events in the Company's history were that it held Napoleon captive on Saint Helena, and made the fortune of Elihu Yale. Its products were the basis of the Boston Tea Party in Colonial America. Its shipyards provided the model for St. Petersburg, elements of its administration survive in the Indian bureaucracy, and its corporate structure was the most successful early example of a joint stock company. However the demands of Company officers on the treasury of Bengal contributed tragically to the province's incapacity in the face of a famine which killed millions in 1770-1773.

History

The foundation years

The Company was founded as The Governor and Company of Merchants of London Trading into the East Indies by a coterie of enterprising and influential businessmen, who obtained the Crown's charter for exclusive permission to trade in the East Indies for a period of fifteen years. The Company had 125 shareholders, and a capital of £72,000. Initially, however, it made little impression on the Dutch control of the spice trade and at first it could not establish a lasting outpost in the East Indies. Eventually ships belonging to the company arrived in India, docking at Surat, which was established as a trade transit point in 1608. In the next two years, it managed to build its first factory (as the trading posts were known) in the town of Machilipatnam in the Coromandel Coast in the Bay of Bengal. The high profits reported by the Company after landing in India (presumably due to a reduction in overhead costs effected by the transit points), initially prompted King James I to grant subsidiary licenses to other trading companies in Britain. But, in 1609, he renewed the charter given to the Company for an indefinite period, including a clause which specified that the charter would cease to be in force if the trade turned unprofitable for three consecutive years.

Original organization structure

The Company was led by one Governor and 24 directors who made up the Court of Directors. They were appointed by, and reported to the Court of Proprietors. The Court of Directors had ten committees reporting to it. Only an investor with more than 500 pounds of stock could vote in the Court of Proprietors. Also, only an investor with an investment exceeding 2,000 pounds could be elected as a Director [http://courses.washington.edu/hum523/india/eic2.shtml].

Footholds in India

Traders were frequently engaged in hostilities with their Dutch and Portuguese counterparts in the Indian Ocean. A key event providing the Company with the favour of Mughal Emperor Jahangir was their victory over the Portuguese in the Battle of Swally in 1612. Perhaps realizing the futility of waging trade wars in remote seas, the English decided to explore their options for gaining a foothold in mainland India, with official sanction of both countries, and requested the Crown to launch a diplomatic mission. In 1615, Sir Thomas Roe was instructed by James I to visit the Mughal emperor Jahangir (who ruled over most of the subcontinent, along with Afghanistan). The purpose of this mission was to arrange for a commercial treaty which would give the Company exclusive rights to reside and build factories in Surat and other areas. In return, the Company offered to provide to the emperor goods and rarities from the European market. This mission was highly successful and Jahangir sent a letter to the King through Sir Thomas. He wrote: :Upon which assurance of your royal love I have given my general command to all the kingdoms and ports of my dominions to receive all the merchants of the English nation as the subjects of my friend; that in what place soever they choose to live, they may have free liberty without any restraint; and at what port soever they shall arrive, that neither Portugal nor any other shall dare to molest their quiet; and in what city soever they shall have residence, I have commanded all my governors and captains to give them freedom answerable to their own desires; to sell, buy, and to transport into their country at their pleasure. :For confirmation of our love and friendship, I desire your Majesty to command your merchants to bring in their ships of all sorts of rarities and rich goods fit for my palace; and that you be pleased to send me your royal letters by every opportunity, that I may rejoice in your health and prosperous affairs; that our friendship may be interchanged and eternal. [http://www.fordham.edu/halsall/india/1617englandindies.html]

Expansion

The company, under such obvious patronage, soon managed to eclipse the Portuguese, who had established their bases in Goa and Bombay (which was later ceded to the British as part of the dowry of Catherine de Braganza). It managed to create strongholds in Surat (where a factory was built in 1612), Madras (1639), Bombay (1668) and Calcutta. By 1647, the Company had 23 factories and 90 employees in India. The major factories became the walled forts of Fort William in Bengal, Fort St George in Madras and the Bombay Castle. In 1634, the Mughal emperor extended his hospitality to the English traders to the region of Bengal (and in 1717 completely waived customs duties for the trade). The company's mainstay businesses were by now in cotton, silk, indigo, saltpetre and tea. All the while it was making inroads into the Dutch monopoly of the spice trade in the Malaccan straits. In 1711, the Company established a trading post in Canton (Guangzhou), China, to trade tea for silver. In 1657, Oliver Cromwell renewed the charter of 1609, and brought about minor changes in the holding of the Company. The status of the Company was further enhanced by the restoration of monarchy in Britain. By a series of five acts around 1670, King Charles II provisioned it with the rights to autonomous territorial acquisitions, to mint money, to command fortresses and troops and form alliances, to make war and peace, and to exercise both civil and criminal jurisdiction over the acquired areas. The Company, surrounded by trading competitors, other imperial powers, and sometimes hostile native rulers, experienced a growing need for protection. The freedom to manage its military affairs thus came as a welcome boon and the Company rapidly raised its own armed forces in the 1680s, mainly drawn from the indigenous local population. By 1689, the Company was arguably a "nation" in the Indian mainland, independently administering the vast presidencies of Bengal, Madras and Bombay and possessing a formidable and intimidating military strength.

The road to a complete monopoly

Trade monopoly

The prosperity that the employees of the company enjoyed allowed them to return to their country and establish sprawling estates and businesses and obtain political power. Consequently, the Company developed for itself a lobby in the British parliament. However, under pressure from ambitious tradesmen and former associates of the Company (pejoratively termed Interlopers by the Company), who wanted to establish private trading firms in India, a deregulating act was passed in 1694. This act allowed any British firm to trade with India, unless specifically prohibited by act of parliament, thereby annulling the charter that was in vogue for almost 100 years. By an act in 1698, a new "parallel" East India Company (officially titled the English Company Trading to the East Indies) was floated under a state-backed indemnity of £2 million. However, the powerful stockholders of the old company quickly subscribed a sum of £315,000 in the new concern, and dominated the new body. The two companies wrestled with each other for some time, both in England and in India, for a dominant share of the trade. But it quickly became evident, that in practice, the original Company scarcely faced any measurable competition. Both companies finally merged in 1702, by a tripartite indenture involving the state and the two companies. Under this arrangement, the merged company lent to the Treasury a sum of £3,200,000, in return for exclusive privileges for the next three years—after which the situation was to be reviewed. The amalgamated company became the United Company of Merchants of England Trading to the East Indies. What followed in the next decades was a constant see-saw battle between the Company lobby and the parliament. The Company sought a permanent establishment, while the Parliament would not willingly relinquish the opportunity to exploit the Company's profits by allowing it a greater autonomy. In 1712, another act renewed the status of the Company, though the debts were repaid. By 1720 15% of British imports were from India, almost all passing through the Company, which reasserted the influence of the Company lobby. The license was prolonged until 1766 by yet another act in 1730. At this time, Britain and France became bitter rivals, and there were frequent skirmishes between them for control of colonial possessions. In 1742, fearing the monetary consequences of a war, the government agreed to extend the deadline for the licensed exclusive trade by the Company in India till 1783, in return for a further loan of £1 million. The skirmishes did escalate to the feared war, and between 1754 and 1763 the Seven Years' War diverted the state's attention towards consolidation and defence of its territorial possessions in Europe and its colonies in North America. The war also took place on Indian soil, between the Company troops and the French forces. Around the same time, Britain surged ahead of its European rivals with the advent of the Industrial Revolution. Demand for Indian commodities was boosted by the need to sustain the troops and the economy during the war, and by the increased availability of raw materials and efficient methods of production. As home to the revolution, Britain experienced higher standards of living, and this spiralling cycle of prosperity, demand and production had a profound influence on overseas trade. The Company became the single largest player in the British global market, and reserved for itself an unassailable position in the decision-making process of the Government. William Pyne notes in his book The Microcosm of London (1808) that :On the 1st March, 1801, the debts of the East India Company amounted to £5,393,989 their effects to £15,404,736 and their sales increased since February 1793, from £4,988,300 to £7,602,041.

Salt Trade [Saltpeter]

Sir John Banks, a businessman from Kent who negotiated an agreement between the King and the Company began his career in a syndicate arranging contracts for victualling the navy, an interest he kept up for most of his life. He knew Pepys and John Evelyn and and founded a substantial fortune from the Levant and Indian trades. He also became a Director and later, as Governor of the East Indian Company in 1672, he was able to arrange a contract which included a loan of #20,000 and #30,000 worth of saltpetre for the King 'at the price it shall sell by the candle' - that is by auction - where an inch of candle burned and as long as it was alight bidding could continue. The agreement also included with the price 'an allowance of interest which is to be expressed in tallies.' This was something of a breakthrough in Royal prerogative because previous requests for the King to buy at the Company's auctions had been turned down as 'not honourable or decent.' Outstanding debts were also agreed and the Company permitted to export 250 tons of saltpetre. Again in 1673 Banks successfully negotiated another contract for 700 tons of saltpetre at #37,000 between the King and the Company So urgent was the need to supply the armed forces in the United Kingdom, America and elsewhere that the authorities sometimes turned a blind eye on the untaxed sales. One Governor of the Company was even reported as saying in 1864 that he would rather have the saltpetre made than the tax on salt.
- [http://salt.org.il/frame_saltpet.html The Secret Trade] The basis of the Monopoly

Opium trade

In the eighteenth century opium was highly sought after by the Chinese, and so in 1773 the Company assumed the monopoly of opium trading in Bengal. Company ships were not allowed officially to carry opium to China. So the opium produced in Bengal was sold in Calcutta on condition that it be sent to China [http://www.ampltd.co.uk/collections_az/EIC-Factory-1/description.aspx]. Despite the official Chinese ban on opium imports, reaffirmed in 1799 it was smuggled into China from Bengal by traders and agency houses averaging 900 tons a year. The proceeds from drug-runners at Lintin was paid into the Company’s factory at Canton and by 1825 most of the money needed to buy tea in China was raised by the opium trade. In 1838 the Chinese imposed a death penalty on opium smuggling which was then close to 1400 tons a year, and sent a new governor, Lin Zexu to curb smuggling. This finally resulted in the Opium War of 1840 e

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