They were corporations (Virginia Company of London and Virginia Company of Plymouth) and they were employed by the Crown. The Crown gave them the right to self-govern and the Companies did the same for their settlers (colonies).
The Virginia Company refers collectively to two joint-stock companies chartered under James I on April 10, 1606 with the goal of establishing settlements on the coast of America. ... The principle was thus established that a royal colony should be self-governing, and this formed the genesis of democracy in America. ;
The Virginia Company allowed settlers the right to self-government in 1618 to enhance colony stability and attract more settlers through the establishment of a General Assembly. This included elected representatives known as Burgesses, which promoted a form of representative governance. The move aimed to improve local management and reduce reliance on the company in England.
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