The Ngqika people are a Xhosa monarchy who lived west of the Great Kei River in what is today the Eastern Cape of South Africa . They were first ruled by Rarabe kaPhalo who died with his son Mlawu, who was destined for chieftaincy. The clan would be named after Ngqika ka Mlawu, the son of the then late Mlawu. It would be years before the child would rule his people who fought in the Xhosa Wars , which were sparked by the encroachment of European settlers on Xhosa lands.
125-553: The Dutch East India Company (VOC) that was responsible for trading and colonising of South African land in what is described as “founding” several urban areas like towns and cities in already populated areas of the west of South Africa. The organisation continually changed the boundaries in the Cape Colony due to European invasion and migration, establishing the Great Fish River as the eastern frontier in 1778. In colonial times,
250-612: A fleet of eight ships under Jacob van Neck had been the first Dutch fleet to reach the 'Spice Islands' of Maluku (also known as the Moluccas), cutting out the Javanese middlemen. The ships returned to Europe in 1599 and 1600 and the expedition made a 400 percent profit. In 1600, the Dutch joined forces with the Muslim Hituese on Ambon Island in an anti-Portuguese alliance, in return for which
375-648: A subsidiary of another corporation (its parent company ), which may itself be either a closely held or a public corporation. In some jurisdictions, the subsidiary of a listed public corporation is also defined as a public corporation (for example, in Australia ). In Australia corporations are registered and regulated by the Commonwealth Government through the Australian Securities and Investments Commission . Corporations law has been largely codified in
500-638: A Dutch ship. The Cambodians defeated the VOC in the Cambodian–Dutch War from 1643 to 1644 on the Mekong River. In 1640, the VOC obtained the port of Galle , Ceylon , from the Portuguese and broke the latter's monopoly of the cinnamon trade. In 1658, Gerard Pietersz Hulft laid siege to Colombo , which was captured with the help of King Rajasinghe II of Kandy . By 1659, the Portuguese had been expelled from
625-462: A capital of 6,440,200 guilders , the new company's charter empowered it to build forts, maintain armies, and conclude treaties with Asian rulers. It provided for a venture that would continue for 21 years, with a financial accounting only at the end of each decade. In February 1603, the company seized the Santa Catarina , a 1500-ton Portuguese merchant carrack , off the coast of Singapore. She
750-405: A company with legal liability, not being a partnership, had a distinct legal personality that was separate from that of its individual shareholders. The existence of a corporation requires a special legal framework and body of law that specifically grants the corporation legal personality, and it typically views a corporation as a fictional person, a legal person, or a moral person (as opposed to
875-453: 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, followed by as in the case of the Australian and UK tax systems, is for the recipient of the dividend to be entitled to a tax credit to address the fact that
1000-432: A form for smaller enterprises, are becoming increasingly common. Between 2002 and 2008, the intermediary corporation ( 中間法人 , chūkan hōjin ) existed to bridge the gap between for-profit companies and non-governmental and non-profit organizations. In Latvia , which uses a model similar to Germany, a public stock company is called an akciju sabiedrība (a/s, A/S or AS), whereas a private, 'limited liability company'
1125-433: A large capital 'V' with an O on the left and a C on the right half and was possibly the first globally recognised corporate logo . It appeared on various corporate items, such as cannons and coins. The first letter of the hometown of the chamber conducting the operation was placed on top. The monogram, versatility, flexibility, clarity, simplicity, symmetry, timelessness, and symbolism are considered notable characteristics of
1250-614: A large number of members. The shares of each member can be purchased, sold, and transferred without the consent of other members. Its capital is divided into transferable shares, suitable for large undertakings. Joint stock companies have a perpetual succession and a common seal. Ownership refers to a large number of privileges. The company is managed on behalf of the shareholders by a board of directors, elected at an annual general meeting. The shareholders also vote to accept or reject an annual report and audited set of accounts. Individual shareholders can sometimes stand for directorships within
1375-602: A large pool of shareholders with management in the hands of jingshang , merchants who operated their businesses using investors' funds, with investor compensation based on profit-sharing, reducing the risk of individual merchants and burdens of interest payment. The operation of these joint investment partnerships can be examined in a mathematical problem included in the Mathematical treatise in nine sections ( Shu-shu chiu-chang ) (1247 ed.) of Ch'in Chiu-shao (c.1202–61). Although
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#17328560399031500-539: A large share of its profits to this end in the period up to 1630. The VOC traded throughout Asia, benefiting mainly from Bengal . Ships coming into Batavia from the Netherlands carried supplies for VOC settlements in Asia. Silver and copper from Japan were used to trade with the world's wealthiest empires, Mughal India and Qing China , for silk, cotton, porcelain, and textiles. These products were either traded within Asia for
1625-626: A legal entity that has shares (Bosnian/Croatian: dionica or vrijednosni papir ; Serbian: akcija or hartija od vrijednosti - Cyrillic : акција or хартија од вриједности ) that can be traded in a free market or stock exchanges in the Bosnia and Herzegovina (listed in Sarajevo Stock Exchange or Banja Luka Stock Exchange ). In Bulgaria , a joint-stock company is called a aktsionerno druzhestvo or AD ( Bulgarian : акционерно дружество or АД ). When all shares are owned by
1750-689: A monopoly on East Indies trade. In 1620, diplomatic agreements in Europe ushered in a period of collaboration between the Dutch and English spice trades. This ended with the notorious Amboyna massacre , where ten Englishmen were arrested, tried and beheaded for conspiracy against the Dutch government. Although this caused outrage in Europe and a diplomatic crisis, the English quietly withdrew from most of their Indonesian activities (except trading in Banten) and focused on other Asian interests. In 1619, Jan Pieterszoon Coen
1875-632: A more viable financial structure than previous guilds or state-regulated companies. The first joint-stock companies to be implemented in the Americas were the London Company and the Plymouth Company . Transferable shares aim to achieve positive returns on equity , which is evidenced by investment in companies like the East India Company, which used the financing model to manage their trade on
2000-460: A much smaller hit to their returns as opposed to those involved with a closely held corporation. Publicly traded companies, however, can suffer from that advantage. A closely held corporation can often voluntarily take a hit to profit with little to no repercussions if it is not a sustained loss. A publicly traded company often comes under extreme scrutiny if profit and growth are not evident to stock holders, thus stock holders may sell, further damaging
2125-467: A natural person) which shields its owners (shareholders) from "corporate" losses or liabilities; losses are limited to the number of shares owned. It furthermore creates an inducement to new investors (marketable stocks and future stock issuance). Corporate statutes typically empower corporations to own property, sign binding contracts, and pay taxes in a capacity separate from that of its shareholders, who are sometimes referred to as "members". The corporation
2250-463: A new era of an abundant supply of capital at low interest rates suddenly opened around this time. The second factor enabled the company easily to finance its expansion in the new areas of commerce. Between the 1680s and 1720s, the VOC was therefore able to equip and man an appreciable expansion of its fleet, and acquire a large amount of precious metals to finance the purchase of large amounts of Asian commodities, for shipment to Europe. The overall effect
2375-625: A publicly traded company, as there will generally be fewer voting shareholders, and the shareholders would have common interests. A publicly traded company is also at the mercy of the market, with capital flow in and out based not only on what the company is doing but also on what the market and even what the competitors, major and minor, are doing. However, publicly traded companies also have advantages over their closely held counterparts. Publicly traded companies often have more working capital and can delegate debt throughout all shareholders. Therefore, shareholders of publicly traded company will each take
2500-421: A quarter of the initial shareholders were Zuid-Nederlanders (people from an area that includes modern Belgium and Luxembourg ), and there were also a few dozen Germans. The VOC had two types of shareholders: the participanten , who could be seen as non-managing members, and the 76 bewindhebbers (later reduced to 60) who acted as managing directors. This was the usual set-up for Dutch joint-stock companies at
2625-503: A responsabilità limitata , or S.r.l.), and the publicly traded partnership ( società in accomandita per azioni , or S.a.p.a.). The latter is a hybrid of the limited partnership and public limited company, having two categories of shareholders, some with and some without limited liability, and is rarely used in practice. In Japan , both the state and local public entities under the Local Autonomy Act (now 47 prefectures , made in
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#17328560399032750-474: A single shareholder the company receives the special designation of ednolichno aktsionerno druzhestvo or EAD ( Bulgarian : еднолично акционерно дружество or ЕАД ). In Canada both the federal government and the provinces have corporate statutes, and thus a corporation may be incorporated either provincially or federally. Many older corporations in Canada stem from Acts of Parliament passed before
2875-456: A single voyage and to be liquidated upon the return of the fleet. Investment in these expeditions was a very high-risk venture, not only because of the usual dangers of piracy, disease and shipwreck, but also because the interplay of inelastic demand and relatively elastic supply of spices could make prices tumble, thereby ruining prospects of profitability. To manage such risk, the forming of a cartel to control supply would seem logical. In 1600,
3000-594: A stock transfer for an eighth of the company (or more specifically, the mountain in which the copper resource was available) as early as 1288. In more recent history, the earliest joint-stock company recognized in England was the Company of Merchant Adventurers to New Lands , founded in 1551 with 240 shareholders. It became the Muscovy Company , which had a monopoly on trade between Russia and England , when royal charter
3125-448: A trade surplus with other European countries. Coen discovered the obvious solution for the problem: to start an intra-Asiatic trade system, whose profits could be used to finance the spice trade with Europe. In the long run this obviated the need for exports of precious metals from Europe, though at first it required the formation of a large trading-capital fund in the Indies. The VOC reinvested
3250-414: A trading post in the area and eventually to monopolise the trade there, especially the gold trade. By 1669, the VOC was the richest private company the world had ever seen, with over 150 merchant ships, 40 warships, 50,000 employees, a private army of 10,000 soldiers, and a dividend payment of 40% on the original investment. Many of the VOC employees inter-mixed with the indigenous peoples and expanded
3375-702: A treaty of 1684 with the Sultan. Also, on the Coromandel Coast , it moved its chief stronghold from Pulicat to Nagapattinam , so as to secure a monopoly on the pepper trade to the detriment of the French and the Danes. However, the importance of these traditional commodities in the Asian-European trade was diminishing rapidly at the time. The military outlays that the VOC needed to make to enhance its monopoly were not justified by
3500-576: Is a matter of definition. An early form of joint-stock company was the medieval commenda , although it was usually employed for a single commercial expedition. Around 1350 in France at Toulouse , 96 shares of the Société des Moulins du Bazacle , or Bazacle Milling Company were traded at a value that depended on the profitability of the mills the society owned, making it probably the first company of its kind in history. The Swedish company Stora has documented
3625-419: Is also empowered to borrow money, both conventionally and directly to the public, by issuing interest-bearing bonds. Corporations subsist indefinitely; "death" comes only by absorption (takeover) or bankruptcy. According to Lord Chancellor Haldane , ...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
3750-621: Is called a sabiedrība ar ierobežotu atbildību (SIA). State-owned variants of these companies add an initial capital V ( valsts - 'state'), as in VAS and VSIA. In Norway, a joint-stock company is called an aksjeselskap , abbreviated AS . A special and by far less common form of joint-stock companies, intended for companies with a large number of shareholders, is the publicly traded joint-stock companies, called allmennaksjeselskap and abbreviated ASA . A joint-stock company must be incorporated, has an independent legal personality and limited liability, and
3875-503: Is required to have a certain capital upon incorporation. Ordinary joint-stock companies must have a minimum capital of NOK 30,000 upon incorporation, which was reduced from 100,000 in 2012. Publicly traded joint-stock companies must have a minimum capital of NOK 1 million. See: Open joint-stock company (OJSC). In Spain there are two types of companies with limited liability: (i) "S.L.", or Sociedad Limitada (a private limited company ), and (ii) "S.A.", or Sociedad Anónima (similar to
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4000-493: Is that publicly traded corporations have the burden of complying with additional securities laws, which (especially in the US) may require additional periodic disclosure (with more stringent requirements), stricter corporate governance standards as well as additional procedural obligations in connection with major corporate transactions (for example, mergers) or events (for example, elections of directors). A closely held corporation may be
4125-553: Is used to make a distinction from the [British] East India Company (EIC) and other East Indian companies (such as the Danish East India Company , French East India Company , Portuguese East India Company , and the Swedish East India Company ). The company's alternative names that have been used include the 'Dutch East Indies Company', 'United East India Company', 'Jan Company', or 'Jan Compagnie'. Before
4250-631: The Aktiengesellschaft (AG), analogous to public limited companies (or corporations in US/Can) in the English-speaking world, and the Gesellschaft mit beschränkter Haftung (GmbH), similar to the modern private limited company . Italy recognizes three types of company limited by shares: the public limited company ( società per azioni , or S.p.A.), the private limited company ( società
4375-683: The Canada Business Corporations Act . The Chilean form of joint-stock company is called Sociedad por Acciones (often abbreviated "SpA"). They were created in 2007 by Law N° 20.190, and they are the most recent variety of societary types, as they represent a simplified form of corporation – originally conceived for venture capital companies. According to the Ministry of Economy's Business and Society Registry, SpAs accounted for 71.42% of new businesses in October 2023. The Czech form of
4500-585: The Amsterdam Stock Exchange ). The company possessed quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, strike its own coins , and establish colonies. Also, because it traded across multiple colonies and countries from both the East and the West, the VOC is sometimes considered to have been the world's first multinational corporation . Statistically,
4625-513: The Corporations Act 2001 . In Brazil there are many different types of legal entities ( sociedades ), but the two most common ones commercially speaking are (i) sociedade limitada , identified by "Ltda." or "Limitada" after the company's name, equivalent to the British limited liability company, and (ii) sociedade anônima or companhia , identified by "SA" or "Companhia" in
4750-465: The Dutch East India Company issued shares that were made tradable on the Amsterdam Stock Exchange . The development enhanced the ability of joint-stock companies to attract capital from investors, as they could now easily dispose of their shares. In 1612, it became the first 'corporation' in intercontinental trade with 'locked in' capital and limited liability. The joint-stock company became
4875-549: The Dutch Republic was at war. The Portuguese Empire thus became an appropriate target for Dutch military incursions. These factors motivated Dutch merchants to enter the intercontinental spice trade themselves. Further, a number of Dutch merchants and explorers, such as Jan Huyghen van Linschoten and Cornelis de Houtman , went on to obtain firsthand knowledge of the "secret" Portuguese trade routes and practices that were already in place, thereby providing further opportunity for
5000-581: The Dutch Revolt , which began in 1566/68, the Flemish city of Antwerp had played an important role as a distribution center in northern Europe. After 1591, the Portuguese used an international syndicate of the German Fugger family and Welser family , as well as Spanish and Italian firms, which operated out of Hamburg as the northern staple port to distribute their goods, thereby cutting Dutch merchants out of
5125-606: The Heeren XVII (the Lords Seventeen). They were selected from the bewindhebber -class of shareholders. Of the Heeren XVII , eight delegates were from the Chamber of Amsterdam (one short of a majority on its own), four from the Chamber of Zeeland, and one from each of the smaller Chambers, while the seventeenth seat was alternatively from the Chamber of Middelburg-Zeeland or rotated among the five small Chambers. Amsterdam had thereby
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5250-487: The Indian subcontinent . Joint-stock companies paid out divisions (dividends) to their shareholders by dividing up the profits of the voyage in the proportion of shares held. Divisions were usually cash, but when working capital was low and detrimental to the survival of the company, divisions were either postponed or paid out in remaining cargo, which could be sold by shareholders for profit. However, in general, incorporation
5375-655: The Malabar and Coromandel coasts in India. Direct access to mainland China came in 1729 when a factory was established in Canton . In 1662, however, Koxinga expelled the Dutch from Taiwan ( see History of Taiwan ). In 1663, the VOC signed the "Painan Treaty" with several local lords in the Painan area that were revolting against the Aceh Sultanate . The treaty allowed the VOC to build
5500-489: The continued existence of the company. In modern-day corporate law , the existence of a joint-stock company is often synonymous with incorporation (possession of legal personality separate from shareholders) and limited liability (shareholders are liable for the company's debts only to the value of the money they have invested in the company). Therefore, joint-stock companies are commonly known as corporations or limited companies . Some jurisdictions still provide
5625-510: The 19th century and municipalities ) are considered to be corporations ( 法人 , hōjin ) . Non-profit corporations may be established under the Civil Code . The term "company" ( 会社 , kaisha ) or (企業 kigyō ) is used to refer to business corporations. The predominant form is the Kabushiki gaisha (株式会社), used by public corporations as well as smaller enterprises. Mochibun kaisha (持分会社),
5750-581: The Cape Colony's white government to overthrow Ngqika, but the colony continued to recognise his nephew as the paramount chief. Ngqika ka Mlawu died in November 1829 after a chest illness and alcohol abuse. Sandile kaNgqika the rightful heir of Ngqika, was only nine years old when his father died. Maqoma, born to Ngqika and Nomvakalisa Nothontho of the Ngqosini, was the chief's eldest son but because Sandile's mother
5875-625: The Dutch East Indies for the first time in its history. After the Fourth Anglo-Dutch War , the VOC's financial issues worsened considerably. After vain attempts at reorganisation by the provincial States of Holland and Zeeland , the board of directors in the VOC were sacked in 1796 and the company's management was handed over to a Committee for Affairs relating to East India Trade and Possessions (Dutch: Comité tot de zaken van de Oost-Indische handel en bezittingen ). The VOC charter
6000-488: The Dutch captain's life on condition that he joined his army and trained his soldiers on modern lines. This defeat in the Travancore–Dutch War is considered the earliest example of an organised Asian power overcoming European military technology and tactics; and it signalled the decline of Dutch power in India. The attempt to continue as before as a low volume-high profit business enterprise with its core business in
6125-547: The Dutch to enter the trade. The stage was thus set for Dutch expeditions to the Indonesian islands , beginning with James Lancaster in 1591, Cornelis de Houtman in 1595 and again in 1598, Jacob Van Neck in 1598, Lancaster again in 1601, among others. During the four-ship exploratory expedition by Frederick de Houtman in 1595 to Banten , the main pepper port of West Java, the crew clashed with both Portuguese and indigenous Javanese. Houtman's expedition then sailed east along
6250-528: The Dutch were given the sole right to purchase spices from Hitu. Dutch control of Ambon was achieved when the Portuguese surrendered their fort in Ambon to the Dutch-Hituese alliance. In 1613, the Dutch expelled the Portuguese from their Solor fort, but a subsequent Portuguese attack led to a second change of hands; following this second reoccupation, the Dutch once again captured Solor in 1636. East of Solor , on
6375-695: The East Indies, but implementation of this policy never materialised, mainly because very few Dutch were willing to emigrate to Asia. Another of Coen's ventures was more successful. A major problem in the European trade with Asia at the time was that the Europeans could offer few goods that Asian consumers wanted, except silver and gold. European traders therefore had to pay for spices with the precious metals, which were in short supply in Europe, except for Spain and Portugal. The Dutch and English had to obtain it by creating
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#17328560399036500-519: The English were the first to adopt this approach by bundling their resources into a monopoly enterprise, the English East India Company , thereby threatening their Dutch competitors with ruin. In 1602, the Dutch government followed suit, sponsoring the creation of a single "United East Indies Company" that was also granted monopoly over the Asian trade. For a time in the seventeenth century, it
6625-581: The Ngqika lands were known as British Kaffraria . Later the Apartheid government of South Africa gave them a form of independence as the former " Ciskei " homeland . The clan were referred to as “Gaika” people by the Europeans. Ngqika ka Mlawu was the first chief of the Ngqika and the third paramount chief of the Rharhabe Xhosas . He had nine wives. The clan was named after him when his grandfather ( Rharhabe ,
6750-584: The Ngqika), Khoikhoi and San people . Relations between the European invaders were fluid throughout this period with the varying indigenous people and Europeans working for or against one another to secure land, resources and cattle. These groups changed allies depending on who would help advance their objectives over the years. In 1793, in collaboration with other Xhosa clans, the Ngqikas fought against white settlers during
6875-520: The Second Frontier War. In 1796, Ngqika turned 18 and was ready to assume his rightful place on the throne, but his uncle was reluctant to give up power. Ndlambe appealed to the tribe to retain his power but this failed. His nephew imprisoned him a year later in an attempt to stifle his power. When he escaped across the Great Fish River in 1799 with his supporters, he attempted to collude with
7000-548: The US). The institution most often referenced by the word "corporation" is publicly traded , which means that the company's shares are traded on a public stock exchange (for example, the New York Stock Exchange or Nasdaq in the United States) whose shares of stock of corporations are bought and sold by and to the general public. Most of the largest businesses in the world are publicly traded corporations. However,
7125-536: The VOC by 1685. Even more importantly, the Third Anglo-Dutch War temporarily interrupted VOC trade with Europe. This caused a spike in the price of pepper, which enticed the English East India Company (EIC) to enter this market aggressively in the years after 1672. Previously, one of the tenets of the VOC pricing policy was to slightly over-supply the pepper market, so as to depress prices below
7250-428: The VOC eclipsed all of its rivals in the Asian trade. Between 1602 and 1796 the VOC sent nearly a million Europeans to work in the Asia trade on 4,785 ships and netted for their efforts more than 2.5 million tons of Asian trade goods and slaves. By contrast, the rest of Europe combined sent only 882,412 people from 1500 to 1795, and the fleet of the English (later British) East India Company , the VOC's nearest competitor,
7375-493: The VOC in the Dutch Republic , the VOC made extensive use of local Asian labour markets. As a result, the personnel of the various VOC offices in Asia consisted of European and Asian employees. Asian or Eurasian workers could be employed as sailors, soldiers, writers, carpenters, smiths, or as simple unskilled workers. At the height of its existence, the VOC had 25,000 employees who worked in Asia and 11,000 who were en route. Also, while most of its shareholders were Dutch, about
7500-512: The VOC mainly operated in what later became the Dutch East Indies (modern Indonesia), the company also had important operations elsewhere. It employed people from different continents and origins in the same functions and working environments. Although it was a Dutch company, its employees included not only people from the Netherlands, but also many from Germany and other countries. Besides the diverse north-west European workforce recruited by
7625-408: The VOC tried to use military force to make Ming dynasty China open up to Dutch trade, the Chinese defeated the Dutch in a war over the Penghu islands from 1623 to 1624, forcing the VOC to abandon Penghu for Taiwan . The Chinese defeated the VOC again at the Battle of Liaoluo Bay in 1633. The Vietnamese Nguyen lords defeated the VOC in a 1643 battle during the Trịnh–Nguyễn War , blowing up
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#17328560399037750-448: The VOC's professionally designed logo. Those elements ensured its success at a time when the concept of the corporate identity was virtually unknown. An Australian vintner has used the VOC logo since the late 20th century, having re-registered the company's name for the purpose. Around the world, and especially in English-speaking countries, the VOC is widely known as the 'Dutch East India Company'. The name 'Dutch East India Company'
7875-421: The VOC's trade started in the early 1680s, after the temporary collapse of the EIC around 1683 offered an excellent opportunity to enter these markets. The actual cause for the change lies, however, in two structural features of this new era. In the first place, there was a revolutionary change in the tastes affecting European demand for Asian textiles, coffee and tea, around the turn of the 18th century. Secondly,
8000-508: The Zamorin was made to sign a treaty with the VOC undertaking to trade exclusively with the VOC and expel other European traders. For a brief time, this appeared to improve the company's prospects. However, in 1715, with EIC encouragement, the Zamorin renounced the treaty. Though a Dutch army managed to suppress this insurrection temporarily, the Zamorin continued to trade with the English and the French, which led to an appreciable upsurge in English and French traffic. The VOC decided in 1721 that it
8125-406: The case of Hallett v Dowdall , the Court of the Exchequer held that such clauses bound people who have notice of them. Four years later, the Joint Stock Companies Act 1856 provided for limited liability for all joint-stock companies provided, among other things, that they included the word "limited" in their company name. The landmark case of Salomon v A Salomon & Co Ltd established that
8250-532: The coastal regions, which were then occupied by the VOC, securing for it the monopoly over cinnamon. To prevent the Portuguese or the English from ever recapturing Sri Lanka , the VOC went on to conquer the entire Malabar Coast from the Portuguese, almost entirely driving them from the west coast of India. In 1652, Jan van Riebeeck established a resupply outpost at the Cape of Storms (the southwestern tip of Africa, now Cape Town , South Africa) to service company ships on their journey to and from East Asia. The cape
8375-418: The company at this time therefore were not hopeless, had one of the plans for reform been undertaken successfully. However, the Fourth Anglo-Dutch War intervened. British naval attacks in Europe and Asia reduced the VOC fleet by half; removed valuable cargo from its control; and eroded its remaining power in Asia. The direct losses of the VOC during the war can be calculated at 43 million guilders. Loans to keep
8500-404: The company debts that extend beyond the company's ability to pay up to the amount of them. The earliest records of joint-stock companies appear in China during the Tang and Song dynasties . The Tang dynasty saw the development of the heben , the earliest form of joint stock company with an active partner and one or two passive investors. By the Song dynasty this had expanded into the douniu ,
8625-480: The company if a vacancy occurs, but that is uncommon. A joint-stock company also differs from other company forms, as it lacks internal ownership (hence its shareholders). This means that although the shareholder(s) in the joint-stock company may also work for the company as employees or by contract, when they act as shareholders they are always exterior to the company, which may help keep ownership business-oriented and impersonal. Provided sales and assets exist within
8750-458: The company operating reduced its net assets to zero. From 1720 on, the market for sugar from Indonesia declined as the competition from cheap sugar from Brazil increased. European markets became saturated. Dozens of Chinese sugar traders went bankrupt, which led to massive unemployment, which in turn led to gangs of unemployed coolies . The Dutch government in Batavia did not adequately respond to these problems. In 1740, rumours of deportation of
8875-520: The company profits. Closely held companies often have a better relationship with workers. In larger, publicly traded companies, often after only one bad year, the first area to feel the effects is the workforce with layoffs or worker hours, wages or benefits being cut. Again, in a closely held business the shareholders can incur the profit damage rather than passing it to the workers. The affairs of publicly traded and closely held corporations are similar in many respects. The main difference in most countries
9000-489: The company's name, equivalent to the British public limited company. The "Ltda." is mainly governed by the new Civil Code, enacted in 2002, and the "SA", by Law 6.404, dated December 15, 1976, as amended. In Bosnia and Herzegovina , a joint-stock company is called: The specified form of organization means that the company ( private or state-owned ) is organized on the Bosnian market (Federation of BiH and RS entity level) as
9125-401: The company's overhead rose in step with the growth in trade volume; declining gross margins translated directly into a decline in profitability of the invested capital. The era of expansion was one of "profitless growth". Specifically: "[t]he long-term average annual profit in the VOC's 1630–70 'Golden Age' was 2.1 million guilders, of which just under half was distributed as dividends and
9250-469: The company, a joint-stock company is effectively a forum for three- party trading: Owners, i.e. shareholders, are seeking financial funds (profits) and offer economic assets, in the form of capital. Employees, contractors and other contracted parties seek compensation and offer labor for this. Utilisers, ie customers, clients and other stakeholders, seek products and services, and offer financial funds for this. The shareholders are usually not liable for any of
9375-408: The company. Often, that blow is enough to make a small public company fail. Often, communities benefit from a closely held company more so than from a public company. A closely held company is far more likely to stay in a single place that has treated it well even if that means going through hard times. Shareholders can incur some of the damage the company may receive from a bad year or slow period in
9500-460: The corporation are able to assess the creditworthiness of the corporation and cannot enforce claims against shareholders. Shareholders, therefore, experience some loss of privacy in return for limited liability. That requirement generally applies in Europe, but not in common law jurisdictions, except for publicly traded corporations (for which financial disclosure is required for investor protection). In many countries, corporate profits are taxed at
9625-432: The coveted spices or brought back to Europe. The VOC was also instrumental in introducing European ideas and technology to Asia. The company supported Christian missionaries and traded modern technology with China and Japan. A more peaceful VOC trade post on Dejima , an artificial island off the coast of Nagasaki , was for more than two hundred years the only place where Europeans were permitted to trade with Japan . When
9750-563: The dealings it describes are perhaps more complex than those practiced a century earlier, it essentially deals with a kind of investment and division of profits that for sure would have been made in the twelfth if not also the eleventh century: a four-party partnership that collectively made an investment (of 424,000 strings of cash) in a Chinese trading venture to southeast Asia. Each party's original investment consisted of precious metals like silver and gold and commodities like salt, paper, and monk certificates (and their accruing tax exemption). Yet
9875-713: The decisive voice. The Zeelanders in particular had misgivings about this arrangement at the beginning. The fear was not unfounded, because in practice it meant Amsterdam stipulated what happened. The six chambers raised the start-up capital of the Dutch East India Company: Joint-stock company A joint-stock company (JSC) is a business entity in which shares of the company's stock can be bought and sold by shareholders . Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to
10000-482: The deterioration of revenues. To a large extent the costs of the operation of the VOC had a "fixed" character (military establishments; maintenance of the fleet and such). Profit levels might therefore have been maintained if the increase in the scale of trading operations that in fact took place had resulted in economies of scale . However, though larger ships transported the growing volume of goods, labour productivity did not go up sufficiently to realise these. In general
10125-476: The fertile land between the Great Kei River and Great Fish River to encroaching European settlers. Dutch East India Company The United East India Company ( Dutch : Vereenigde Oostindische Compagnie [vərˈeːnɪɣdə ʔoːstˈɪndisə kɔmpɑˈɲi] ; abbreviated as VOC [veː(j)oːˈseː] ), commonly known as the Dutch East India Company , was a chartered trading company and one of
10250-458: The firm cannot be taken by personal creditors of its shareholders. The second feature requires special legislation and a special legal framework, as it cannot be reproduced via standard contract law. The regulations most favorable to incorporation include: In many jurisdictions, corporations whose shareholders benefit from limited liability are required to publish annual financial statements and other data so that creditors who do business with
10375-533: The first joint-stock companies in the world. Established on 20 March 1602 by the States General of the Netherlands amalgamating existing companies , it was granted a 21-year monopoly to carry out trade activities in Asia. Shares in the company could be purchased by any citizen of the United Provinces (Dutch Republic) and subsequently bought and sold in open-air secondary markets (one of which became
10500-592: The fortunes of the VOC started to decline. Five major contributing factors are attributed to its decay in the 50 years between 1730 and 1780: Despite these problems, the VOC in 1780 remained an enormous operation. Its capital in the Republic, consisting of ships and goods in inventory, totalled 28 million guilders; its capital in Asia, consisting of the liquid trading fund and goods en route to Europe, totalled 46 million guilders. Total capital, net of outstanding debt, stood at 62 million guilders. The prospects of
10625-552: The founder of the sub-group) and father (Mlawu, who was to be the next chief) both died in 1782. Ngqika, at only four years old, was too young to rule. Ndlambe (who would eventually establish the AmaNdlambe people) was Rharhabe's other son and Ngqika's uncle who became regent until the boy matured – in the tradition of the Xhosas. Ndlambe was responsible for the expansion of his tribe's territory and influence. He absorbed smaller clans (like
10750-559: The gangs from the Batavia area led to widespread rioting. The Dutch military searched houses of Chinese in Batavia for weapons. When a house accidentally burnt down, military and impoverished citizens started slaughtering and pillaging the Chinese community. This massacre of the Chinese was deemed sufficiently serious for the board of the VOC to start an official investigation into the Government of
10875-534: The imiDange people) into the Ngqikas or expelled them to far lands. They were eventually invaded by European settlers from the Cape Colony who fought with them over their prime grazing land, west of the Great Kei River . Encroachment by European settlers, beginning in the Dutch colonial period , resulted in the century of Xhosa Wars (commonly known as the Frontier Wars) from 1779 to 1879 involving Xhosa tribes (including
11000-579: The increased profits of this declining trade. Nevertheless, this lesson was slow to sink in and at first the VOC made the strategic decision to improve its military position on the Malabar Coast (hoping thereby to curtail English influence in the area, and end the drain on its resources from the cost of the Malabar garrisons) by using force to compel the Zamorin of Calicut to submit to Dutch domination. In 1710,
11125-471: The interim could only do this by selling their share to others on the Amsterdam Stock Exchange . Confusion of confusions , a 1688 dialogue by the Sephardi Jew Joseph de la Vega analysed the workings of this one-stock exchange. The VOC consisted of six Chambers ( Kamers ) in port cities: Amsterdam , Delft , Rotterdam , Enkhuizen , Middelburg and Hoorn . Delegates of these chambers convened as
11250-497: The introduction of general corporation law. The oldest corporation in Canada is the Hudson's Bay Company ; though its business has always been based in Canada, its Royal Charter was issued in England by King Charles II in 1670, and became a Canadian charter by amendment in 1970 when it moved its corporate headquarters from London to Canada. Federally recognized corporations are regulated by
11375-516: The island of Timor , Dutch advances were halted by an autonomous and powerful group of Portuguese Eurasians called the Topasses . They remained in control of the Sandalwood trade and their resistance lasted throughout the 17th and 18th centuries, causing Portuguese Timor to remain under the Portuguese sphere of control. At the time, it was customary for a company to be funded only for the duration of
11500-729: The late 18th century, the company went bankrupt and was formally dissolved in 1799. Its possessions and debt were taken over by the government of the Dutch Batavian Republic . In Dutch, the name of the company was the Vereenigde Nederlandsche Geoctroyeerde Oostindische Compagnie (abbreviated as the VOC), literally the 'United Dutch Chartered East India Company' (the United East India Company). The company's monogram logo consisted of
11625-485: The latter came close to bankruptcy; its share price plummeted from 600 to 250; and its president Josiah Child was temporarily forced from office. However, the writing was on the wall. Other companies, like the French East India Company and the Danish East India Company also started to make inroads on the Dutch system. The VOC therefore closed the theretofore flourishing open pepper emporium of Bantam by
11750-491: The latter period, 3.4 percent." Nevertheless, in the eyes of investors the VOC did not do too badly. The share price hovered consistently around the 400 mark from the mid-1680s (excepting a hiccup around the Glorious Revolution in 1688), and they reached an all-time high of around 642 in the 1720s. VOC shares then yielded a return of 3.5 percent, only slightly less than the yield on Dutch government bonds. After 1730,
11875-451: The level where interlopers were encouraged to enter the market (instead of striving for short-term profit maximisation ). The wisdom of such a policy was illustrated when a fierce price war with the EIC ensued, as that company flooded the market with new supplies from India. In this struggle for market share, the VOC (which had much larger financial resources) could wait out the EIC. Indeed, by 1683,
12000-481: The majority of corporations are privately held , or closely held, so there is no ready market for the trading of shares. Many such corporations are owned and managed by a small group of businesspeople or companies, but the size of such a corporation can be as vast as the largest public corporations. Closely held corporations have some advantages over publicly traded corporations. A small, closely held company can often make company-changing decisions much more rapidly than
12125-432: The next two centuries the company acquired additional ports as trading bases and safeguarded their interests by taking over surrounding territory. It remained an important trading concern and paid annual dividends that averaged to about 18% of the capital for almost 200 years. Much of the labor that built its colonies was from people it had enslaved. Weighed down by smuggling, corruption and growing administrative costs in
12250-538: The north coast of Java , losing twelve crew members to a Javanese attack at Sidayu and killing a local ruler in Madura . Half the crew were lost before the expedition made it back to the Netherlands the following year, but with enough spices to make a considerable profit. In 1598, an increasing number of fleets were sent out by competing merchant groups from around the Netherlands. Some fleets were lost, but most were successful, with some voyages producing high profits. In 1598,
12375-465: 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. This 'directing will' is embodied in a corporate Board of Directors. The legal personality has two economic implications. It grants creditors (as opposed to shareholders or employees) priority over the corporate assets upon liquidation. Second, corporate assets cannot be withdrawn by its shareholders, and assets of
12500-561: The population of Indos in pre-colonial history . Around 1670, two events caused the growth of VOC trade to stall. In the first place, the highly profitable trade with Japan started to decline. The loss of the outpost on Formosa to Koxinga in the 1662 siege of Fort Zeelandia and related internal turmoil in China (where the Ming dynasty was being replaced with the China's Qing dynasty ) brought an end to
12625-492: The possibility of registering joint-stock companies without limited liability. In the United Kingdom and in other countries that have adopted its model of company law, they are known as unlimited companies . A joint-stock company is an artificial person; it has legal existence separate from persons composing it. It can sue and can be sued in its own name. It is created by law, established for commercial purposes, and comprises
12750-426: The profits represented by the dividend have already been taxed. The company profit being passed on is thus effectively taxed only at the rate of tax paid by the eventual recipient of the dividend. In other systems, dividends are taxed at a lower rate than other income (for example, in the US), or shareholders are taxed directly on the corporation's profits, while dividends are not taxed (for example, S corporations in
12875-417: The public limited company is called akciová společnost ( a.s. ) and its private counterpart is called společnost s ručením omezeným ( s.r.o. ). Their Slovak equivalents are called akciová spoločnosť ( a.s. ) and spoločnosť s ručením obmedzeným ( s.r.o. ). Germany , Austria , Switzerland and Liechtenstein recognize two forms of company limited by shares:
13000-408: The remainder reinvested. The long-term average annual profit in the 'Expansion Age' (1680–1730) was 2.0 million guilders, of which three-quarters was distributed as dividend and one-quarter reinvested. In the earlier period, profits averaged 18 percent of total revenues; in the latter period, 10 percent. The annual return of invested capital in the earlier period stood at approximately 6 percent; in
13125-495: The risk of despotic governors-general, a Council of the Indies ( Raad van Indië ) was created. The governor-general effectively became the main administrator of the VOC's activities in Asia, although the Heeren XVII , a body of 17 shareholders representing different chambers, continued to officially have overall control. VOC headquarters were located in Ambon during the tenures of the first three governors-general (1610–1619), but it
13250-420: The silk trade after 1666. Though the VOC substituted Mughal Bengal 's for Chinese silk, other forces affected the supply of Japanese silver and gold. The shogunate enacted a number of measures to limit the export of these precious metals, in the process limiting VOC opportunities for trade, and severely worsening the terms of trade. Therefore, Japan ceased to function as the linchpin of the intra-Asiatic trade of
13375-414: The spice trade had therefore failed. The company had however already (reluctantly) followed the example of its European competitors in diversifying into other Asian commodities, like tea, coffee, cotton, textiles, and sugar. These commodities provided a lower profit margin and therefore required a larger sales volume to generate the same amount of revenue. This structural change in the commodity composition of
13500-487: The time made this difficult to discern for the managers of the company, which may partly explain the mistakes they made from hindsight. This lack of information might have been counteracted (as in earlier times in the VOC's history) by the business acumen of the directors. By this time these were almost exclusively recruited from the political regent class, which had long since lost its close relationship with merchant circles. Low profit margins in themselves do not explain
13625-420: The time. The innovation in the case of the VOC was that the liability of not just the participanten but also of the bewindhebbers was limited to the paid-in capital (usually, bewindhebbers had unlimited liability). The VOC therefore was a limited liability company . Also, the capital would be permanent during the lifetime of the company. As a consequence, investors that wished to liquidate their interest in
13750-571: The trade. At the same time, the Portuguese trade system was unable to increase supply to satisfy growing demand, in particular the demand for pepper. Demand for spices was relatively inelastic ; therefore, each lag in the supply of pepper caused a sharp rise in pepper prices. In 1580, the Portuguese crown was united in a personal union with the Spanish crown (known as the Iberian Union ), with which
13875-428: The value of their individual investments varied considerably, as much as eightfold. Likewise, each party's share of the profits varied greatly, evidently in proportion to its overall share in the total investment. While social and family ties may have shaped the circle of potential coinvestors, they affected little, if at all, an investor's eventual share of the profits, or losses. Finding the earliest joint-stock company
14000-483: Was a descendant of abaThembu (a royal lineage). Her first son was thus considered the “Great Son”. Maqoma became regent until Sandile was ready to rule. The following is a list of chiefs of the Ngqika that ruled during the Xhosa Wars starting with Sandile's great grandfather, Rharhabe: The native groups lost most of their land and were absorbed into the Cape Colony during this century. The Xhosa eventually lost access to
14125-483: Was a distant second to its total traffic with 2,690 ships and a mere one-fifth the tonnage of goods carried by the VOC. The VOC enjoyed huge profits from its spice monopoly and slave trading activities through most of the 17th century. Having been set up in 1602 to profit from the Malukan spice trade, the VOC established a capital in the port city of Jayakarta in 1619 and changed its name to Batavia (now Jakarta ). Over
14250-575: Was able to monopolise the trade in nutmeg, mace, and cloves and to sell these spices across European kingdoms and Emperor Akbar the Great's Mughal Empire at 14–17 times the price it paid in Indonesia ; While Dutch profits soared, the local economy of the Spice Islands was destroyed, because as a monopoly buyer, the VOC forced the prices paid to the local producers in the Spice Islands down to low levels. With
14375-695: Was appointed governor-general of the VOC. He saw the possibility of the VOC becoming an Asian power, both political and economic. On 30 May 1619, Coen, backed by a force of nineteen ships, stormed Jayakarta, driving out the Banten forces; and from the ashes established Batavia as the VOC headquarters. In the 1620s almost the entire native population of the Banda Islands was driven away, starved to death, or killed in an attempt to replace them with Dutch plantations. These plantations were used to grow nutmeg for export. Coen hoped to settle large numbers of Dutch colonists in
14500-505: Was approximately to double the size of the company. The tonnage of the returning ships rose by 125 percent in this period. However, the company's revenues from the sale of goods landed in Europe rose by only 78 percent. This reflects the basic change in the VOC's circumstances that had occurred: it now operated in new markets for goods with an elastic demand, in which it had to compete on an equal footing with other suppliers. This made for low profit margins. The business information systems of
14625-692: Was controlled by a powerful local ruler and subject to stiff competition from Chinese and English traders. In 1604, a second English East India Company voyage commanded by Sir Henry Middleton reached the islands of Ternate , Tidore , Ambon and Banda . In Banda, they encountered severe VOC hostility, sparking Anglo-Dutch competition for access to spices. From 1611 to 1617, the English established trading posts at Sukadana (southwest Kalimantan ), Makassar , Jayakarta and Jepara in Java , and Aceh, Pariaman and Jambi in Sumatra , which threatened Dutch ambitions for
14750-610: Was granted in 1555. The most notable joint-stock company from the British Isles was the East India Company , which was granted a royal charter by Queen Elizabeth I on December 31, 1600 with the intention of establishing trade on the Indian subcontinent . The charter effectively granted the newly formed Honourable East India Company a fifteen-year monopoly on all English trade in the East Indies . Soon afterwards, in 1602,
14875-491: Was later renamed Cape of Good Hope in honour of the outpost's presence. Although non-company ships were welcome to use the station, they were charged exorbitantly. This post later became a full-fledged colony, the Cape Colony , when more Dutch and other Europeans started to settle there. Through the seventeenth century VOC trading posts were also established in Persia , Bengal , Malacca , Siam , Formosa (now Taiwan), as well as
15000-478: Was no longer worth the trouble to try to dominate the Malabar pepper and spice trade. A strategic decision was taken to scale down the Dutch military presence and in effect yield the area to EIC influence. In the 1741 Battle of Colachel , warriors of Travancore under Raja Marthanda Varma defeated the Dutch. The Dutch commander Captain Eustachius De Lannoy was captured. Marthanda Varma agreed to spare
15125-407: Was not a satisfactory location. Although it was at the centre of the spice production areas, it was far from the Asian trade routes and other VOC areas of activity ranging from Africa to India to Japan. A location in the west of the archipelago was thus sought. The Straits of Malacca were strategic but became dangerous following the Portuguese conquest, and the first permanent VOC settlement in Banten
15250-607: Was possible by royal charter or private act , and it was limited because of the government's jealous protection of the privileges and advantages thereby granted. As a result of the rapid expansion of capital-intensive enterprises in the course of the Industrial Revolution in Europe and the United States, many businesses came to be operated as unincorporated associations or extended partnerships , with large numbers of members. Nevertheless, membership of such associations
15375-623: Was renewed several times, but was allowed to expire on 31 December 1799. Most of the possessions of the former VOC were subsequently occupied by Great Britain during the Napoleonic wars , but after the new United Kingdom of the Netherlands was created by the Congress of Vienna , some of these were restored to this successor state of the Dutch Republic by the Anglo-Dutch Treaty of 1814 . While
15500-525: Was such a rich prize that her sale proceeds increased the capital of the VOC by more than 50%. Also in 1603, the first permanent Dutch trading post in Indonesia was established in Banten , West Java , and in 1611, another was established at Jayakarta (later "Batavia" and then "Jakarta"). In 1610, the VOC established the post of governor-general to more firmly control their affairs in Asia. To advise and control
15625-466: Was usually for a short term so their nature was constantly changing. Consequently, registration and incorporation of companies, without specific legislation, was introduced by the Joint Stock Companies Act 1844 . Initially, companies incorporated under this Act did not have limited liability, but it became common for companies to include a limited liability clause in their internal rules. In
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