University / Organisation : University of Amsterdam

Paper or project ? project

Title : Reframing Corporate Purpose: A Historical Perspective.

File : Download

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 a notable absence of official charter revocations by the monarch. Consequently, alternative methods for charter revocation such as scire facias or judicial processes are explored. Employing the case study of the Massachusetts Bay Company, the research demonstrates that charter revocations historically stemmed from corporate activities exceeding specified purposes. Scholarly works such as those by Bainbridge (2020), Spamann and Fisher (2022), and Fisch (2021) are leveraged to contextualize the debate on corporate purpose within legal and economic frameworks. Contrary to prevalent contemporary discourse emphasizing corporate purpose as a broad goal, this study reframes corporate purpose as a delineation of firm activities. 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.