A Study Of Muscovy Company's Privileges And Organization Administration (1553-1603)

The second half of the sixteen century English social economic field was brewing profound change. In the concussion of Commercial Revolution and Price revolution, among the wave of the Great Discoveries, Englishmen began to rouse. In the year of 1553, they found Russia by explore through voyages, got the charter of establishing business organization via presenting a memorial to the King, and founded the Muscovy Company. Early, Muscovy Company had got not only the privileges of trade route and some products but also the right as commonly corporate juridical person of paddling its own canoe to develop. It made the company get its own way to decide anything in many fields. Though the Muscovy Company had something on English government, during its history it had the only affiliation, it did not have the relation more and more deep. In Russia, the company had an exceptional station. It could transit in anywhere of Russia without Russia customs duties and places taxes and tolls. It obtained protection for life and for property from the Tsar. The Muscovy Company fished out a route to self development and self management gradually through trading many times between England and Russia. Its bylaw was very elaborate. Its responsibility and authority clearly demarcated. Its administrative organization was maturity and each one charged well. As the first incorporated company in the early modern times of England, the Muscovy Company had provided sufficient experience for later company'development.Chapter 1: In early modern times English commercial development was limited by market and was anxious to find new breakthrough. Because home market could not get break in short time, Englishmen could not wait to find external market. For breaking traditional sea powers'monopoly, they have to choose northern route to east to explore and finally they succeed. The chartered members of the company founded Muscovy Company in Russia. They traded with Russia mainly. The import commodities were mainly furs, train oil, woods, cable etc. which England was short but required. Most of them were raw material or semi-manufactured goods. The export commodities were cloth, miscellaneous goods, daily necessities and so on which were semi-manufactured goods or finished products. The trade between the two countries had more and more molding, which guaranteed the company's developing and operating.Chapter 2: In the years of 1553, 1555 and 1566 Muscovy Company successively obtained three charters from English crowns. The company had got trade route and some products'monopoly which would make it stand in the green tree absolutely in competition of commodity market and prevented the others English companies going into Russian market. Monopoly had guaranteed Muscovy Company in its early history to survive in strong competition. The right of paddling its own canoe had insured the company developing and expanding, which could give prominence to its individual status in economy. In Russia, the government promised to take charge into protecting Muscovy Company's personality and real property and also members body and property safety, which would make the company avoiding lots of expense. The free of customs duties and taxes and tolls not only made the company hold great interests but also made it transit anywhere in Russia without block in which environment trade could freely grow.Chapter 3: A sixteen-century company engaged in foreign trade required not only a constitutional basis for its operations, but also an institutional structure through which those operations could be conducted. According to the institutional structure, a company ensured its operations and managed all kinds of things effectively. To take advantage of that legal right Muscovy Company had to set up an organization which would operate within the framework of its charter and its privileges. Such an organization formed the institutional basis for the company's activities. The highest authority was the general assembly of all members which had utterly decision-making authority. Its standing body was general court of elected governors, consuls and assistants which was charged into managing routine and partly authority of making decisions. Its members could be shareholders themselves or the persons they entrusted which called assistants. Most of shareholders entrusted assistants to deal with company routine, consequently Muscovy Company inner had formed an agency system.Chapter 4: In the aspect of the relation between the two countries, Russia didn't satisfy only concerned commercial affairs of the company. It was probably this desire for arms and craftsmen which prompted the Tsar to establish more formal diplomatic relations between Russia and England than hitherto existed. Though they did not come to any agreement, Muscovy Company had played a role of intermediator and accelerated the association between the two countries government. In economic field, even though Muscovy Company was an attempt of joint-stock company with much deficiency, it felt about a emerging route little by little for later company's modality and institutional development.