Refraiming Corporate Purpose: A Historical Perspective

Fatjon Kaja (University of Amsterdam)

Abstract

This research examines the historical evolution of corporate purpose and the legal mechanisms affecting corporate charters. Drawing upon UK royal charters and utilizing descriptive statistics, the study reveals that corporate charters were issued to fulfill some public-oriented purpose. The analysis shows that such conception of corporate purpose was enforced. Employing the case study of the Massachusetts Bay Company, the research demonstrates that charter revocations historically stemmed from corporate activities exceeding specified purposes. Contrary to prevalent contemporary discourse emphasizing corporate purpose as a broad goal, this study highlights the importance of law in ensuring a commitment to corporate purpose. Ultimately, this research contributes to a nuanced understanding of corporate purpose, highlighting its historical roots and its implications for contemporary corporate governance and legal practices.

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