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EAST INDIA COMPANY

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GOVERNANCE

The EIC had framed many by-laws, constitutions, orders and rules for its good governance and for carrying out and managing the trade of the Company. I call these the Code of Corporate Governance in EIC. Some of these by-laws, orders
and rules are listed down below[1]:

  • The common seal of EIC to be kept under three locks by three directors appointed by the Court of Directors from time to time. The seal to be opened only in the presence of the three directors or any two of them. The Court of Directors to maintain a Register of all bonds for money borrowed at interest and another Register for all other bonds and instruments. These were to be kept under the inspection of the Directors who had the custody of the seal.

  • Whenever any Transfers are made of any Interest in the stock, or fund of the EIC, eleven shillings and nine pence to be paid for the transfer by the person transferring for the use of the company. A stamp duty of seven shillings and nine pence also to be paid.

  • A Court of Directors to be summoned and held once in every week at the least.

  • An account of money received and paid for the Annuity to be kept distinct from the Trade and the said annuity to be paid half-yearly to the persons interested during Midsummer and Christmas.

  • If the Directors had any dealin gs with the EIC, they had to declare the gains from such dealings.

  • No Director shall take any fee, present or reward directly or indirectly upon any Account whatsoever relating to the Businesses or Affairs of the company.

  • No officer or Servant of the Company shall directly or indirectly take any fee, reward or present other than such as shall be allowed and established by the Court of Directors.

  • The Company’s money not to be laid out in Shipping or invested in the Stock without the consent of the General Court.

  • No ship or vessel shall be hired or freighted by the Court of Directors wherein any Director is directly or indirectly concerned or interested as an owner or a part owner. The ships taken up and voyages to be made were to be decided by the Court of Directors through ballot and not otherwise.

  • Goods and merchandize that shall be licensed to be sent in any of the Company’s ships shall be brought for that purpose to or near the East India House and be viewed by the Committee of Shipping. All bullion to be brought to the Treasury office be viewed, weighed and packed up.

[1]A comprehensive list of the by-laws, orders and rules is found in the manuscript: By-Laws, Constitutions,Orders and Rules for the Good Governance of the Corporation of the United Company of Merchants of England, Trading to the East-Indies and for Better Carrying on and Managing the Trade of the said Company, published in 1774.


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