Corporations come in many different types: The first types were churches and towns. Industrial corporations allowed in the 19th century are usually divided by the law of the jurisdiction where they are chartered into two kinds: by whether they can issue stock or not, or by whether they are formed to make a profit or not. Where local law distinguishes corporations by the ability to a business owned by stockholders is known as a stock, corporations allowed to do so are referred to as “stock corporations”, ownership of the corporation is through stock, and owners of stock are referred to as “stockholders” or “shareholders”.
Corporations chartered in regions where they are distinguished by whether they are allowed to be for profit or not are referred to as “for profit” and “not-for-profit” corporations, respectively. A for-profit corporation is almost always a stock corporation, but some for-profit corporations may choose to be non-stock. Chartered corporations have legal personality and own the assets and profits. Shareholders do not own the assets or profits and do not manage a corporation. In American English, the word corporation is most often used to describe large business corporations. Late in the 19th century, a new form of company having the limited liability protections of a corporation, and the more favorable tax treatment of either a sole proprietorship or partnership was developed. While not a corporation, this new type of entity became very attractive as an alternative for corporations not needing to issue stock.
8 share of the Stora Kopparberg mine, dated June 16, 1288. The word “corporation” derives from corpus, the Latin word for body, or a “body of people”. Roman law recognized a range of corporate entities under the names universitas, corpus or collegium. Entities which carried on business and were the subjects of legal rights were found in ancient Rome, and the Maurya Empire in ancient India. In medieval times, traders would do business through common law constructs, such as partnerships.
Whenever people acted together with a view to profit, the law deemed that a partnership arose. Hudson’s Bay Company, which were created to lead the colonial ventures of European nations in the 17th century. In England, the government created corporations under a royal charter or an Act of Parliament with the grant of a monopoly over a specified territory. Labeled by both contemporaries and historians as “the grandest society of merchants in the universe”, the English East India Company would come to symbolize the dazzlingly rich potential of the corporation, as well as new methods of business that could be both brutal and exploitative.