Royal charter

A royal charter is a formal grant issued by a monarch. The monarch uses their royal prerogative to create these documents. They are often issued as letters patent, which are official public documents. Historically, charters were used to announce public laws. The most famous example is the Magna Carta of 1215. Since the 14th century, their use has changed. They now primarily grant specific rights or powers to individuals or groups. These groups are known as bodies corporate.

Charters serve as a foundation for many important organizations. They can establish boroughs through municipal charters. They are also used to create universities and learned societies. In the past, they were used to form companies. These companies could be for-profit ventures with shareholders. They were often used for exploration, trade, and colonization. Some early charters even granted trade monopolies. However, Parliament restricted these monopolies starting at the end of the 17th century.

Many famous organizations were formed this way. The British East India Company was established in 1600. Other examples include the Hudson's Bay Company and the Bank of England. The BBC also operates under a charter. The British monarchy has issued over 1,000 royal charters in total. About 750 of these charters remain in effect today. The earliest recorded charter on the UK Privy Council's list was from 1155. It was granted to the Worshipful Company of Weavers by Henry I. Other very old charters date back to 1066 and 1067.

Universities have a complex history with these grants. In pre-Reformation Europe, 81 universities were established. Some were founded by Papal bulls, which are official decrees from the Pope. Others were founded by imperial or royal charters. The University of Naples was the first founded by an imperial charter in 1224. The University of Coimbra was the first founded by a royal charter in 1290. Charters that were only royal did not always have international recognition. Their degrees were often only valid within that specific kingdom.

In the British Isles, early charters were often quite specific. The charters for Oxford and Cambridge in the 13th century were not about academic status. Instead, they focused on the exclusive right to teach. They also covered the powers of chancellors' courts to rule on student disputes. They even fixed interest rates and rents. Later, the University of Edinburgh was founded in 1582. Its charter was given to the town council by James VI. Some historians believe a second charter for the college was lost. This might explain how the school gained its degree-awarding powers.

The 19th century brought intense debates about charter powers. People argued over whether a university must explicitly be granted degree-awarding powers. Some thought these powers were implicit in the act of creating a university. Others argued that a charter could limit those powers. For example, University College London wanted a charter but excluded theology. This led to legal arguments before the Privy Council in 1835. Eventually, new rules were established to prevent confusion. All future university charters would explicitly state their power to grant degrees.

Today, royal charters are seen as a mark of distinction. In the UK, the Joint Stock Companies Act 1844 changed how companies are formed. Now, most companies register instead of seeking a charter. The Privy Council describes a charter as a special token of Royal favour. Modern examples include charters awarded in 2014. These were given to the Chartered Institute of Legal Executives and the Chartered Institute of Ergonomics and Human Factors. These documents continue to define the legal identity of important institutions.