The word “corporation” derives from corpus, the Latin word for body, or a “body of people.
The world’s oldest commercial corporation in the world is still in business. It is the Stora Kopparberg mining community in Falun Sweden. It obtained its charter from King Magnus Eriksson in 1347.
Stora Kopparberg continues to be Sweden’s largest producer of electricity, one of the biggest manufacturers of pulpwood and newsprint, the largest supplier of dairy and agricultural produce, the biggest steelmaker and a major producer of industrial chemicals.
But, many believe the modern corporation dates back to 1601, when Queen Elizabeth I created the East India Trading Company.
The original concept of a corporation was quite different than today. Corporations were small, quasi-government institutions chartered by the crown for a specific purpose. The idea was to bring together investors interested in financing large projects, such as exploration.
Kings and queens kept a close watch on these corporations and didn’t hesitate to revoke charters if they weren’t happy from a political stand point with the way things were being run. Investors were liable for any harm or loss caused by the company.