Chartered company

Updated: Aug 20, 2021

A company created by royal charter. These were once more common than they are today – they were used for developing international trade. One well-known company still in existence is the Hudson’s Bay Company, or more properly the Governor and Company of Advcnturers of England trading into Hudson’s Bay. This was formed in 1670. Other famous chartered companies include tl East India Company and the South Sea Company. Today charters tend to be reserved for special organizations, such as the governing bodies of certain professions. These companics must observe the rules of their charter. Members have no personal liability unless this is stated in the charter. There is. however, another type of chartered company known as a patented company, formed by letters patent. Here the liability is unlimited unless the terms of the letters patent state otherwise.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.