History:
Opening of the sea route to India – once the name, given in India, Asia Minor and all of Southeast Asia – in the House of the sailor Vasco da Gama 1499 established Portuguese colonial authority in the Indian Ocean. During the next 100 about years 200 flights were around the Cape of Good Hope to the east. The main motive was originally in the spice trade, but about 1600 other goods, trade was discovered in the east and they took a more prominent place, than in the spice trade. Only about half of all ships, which were sent, mainly, Portuguese and Dutch are all back. Atlantic expeditions thwarted the Ottoman Empire, which blocked access to the eastern Mediterranean for Western Europe. They were also the reason for subsequent alliances and the East India Company.. IN 1580 G. the two great maritime powers Spain and Portugal have merged. The primacy of the Iberian powers assured, that the sea route in Asia is still closed to other European nations. Trade in Asian Spices, and above all pepper, subject to contracts to create a crown with fixed prices, who should then be traders (contratadores). Then they sold to retail goods, such as the Dutch trading house Cunertorf and Snel in Lisbon, in turn delivered to the North European market through trading establishments in Antwerp. Nevertheless, it is no longer possible to make such a large profit, how the price of spices fell.
By the end 16 century Dutch traders from different cities decided to take responsibility for the import of spices from Asian countries. To finance ships and equipment, companies were created such as Brabantse Compagnie, Rotterdam Company, Company ван Glass, what, in its turn, merged with the second Compagnie in Amsterdam and was named Old (Old) Compagnie. For several years, these companies have been equipped with 65 courts extends to 15 fleets, of which about 50 returned fully loaded with goods. They fought Portuguese, English and with each other. Theresult there was a sharp drop in the price of spices. In this way, mostly economic motives, which Dutch merchants forced, to cooperation. Cause demanded national unification.
On 20 Martha 1602 Dutch premier companies merged, forming a large company called “United East India Company (VOC) by the proposal” country attorney “province of Holland Johan van Oldenbarnevelt (1547-1619), and later Governor General Prinz Johann Moritz von Nassau (1606 – 1679). The new company received state charter, granting her sovereign rights, and this will be of great importance for its future development.
This company documents the breakthrough first, and soon the world's largest trading dominant company of its time. VOC displays the main attributes of a modern joint stock company and the beginning of future economic and financial history.
In the beginning, the company managed six chambers in value shopping centers: Amsterdam as main, Zealand, Delft, Rotterdam, Hoorn и Enkhuizen.
Each chamber has appointed its director to the board of directors, which was 75 strong. Of these, the actual executive board was elected and consisted of 17 members of.
Initial paid-in share capital 6424588 guilders, huge amounts at that time.
The key to success in raising capital is the decision of the owners, to open up access to the general public and participate as owner-shareholders.
In this way, shares were sold quickly, mostly, at par 3000 guilders, and they were market, like any Dutchman can buy and sell them. The share price was not set by the government of the country, and independently of the joint stock company, they are interested in joint profit.
Shareholders (term came into operation in about 1606) was to produce authorized capital in 4 part of payments, and they called to the VOC between 1603 And 1606.
The shareholder received a receipt (part) to pay at the par value of the share, as was the practice of the British East India Company during 100 years later. share, confirming payment and ownership, like we know today, was not published, but instead went into share register companiy.
The purchase and sale of shares is carried out by means of a new entry in the register of shareholders in the VOC, in the presence of two directors, which are necessary to confirm the transfer of shares by signing. In this way, Amsterdam Kontor about VOC has become “the first exchange in the world” on trading own shares.
VOC capital never increased except for a few small adjustments in 6440200 guilders.
The company pays off its short-term capital, claims by issuing bonds with a maturity of 3 to 12 Months. Later, after 1655, capital was reviewed for longer periods, so that the loan capital increased several times to 10-12 million. guilders.
State privilege, provided by the company with broad rights, such as exclusive rights, trade east of the Cape of Good Hope, the right to negotiate on behalf of the General State, conclude treaties and alliances, build forts, appoint governors and raise your own army. In this way, the company became “state within state”, and dispose of incredible commercial and political power, completely above state, that the privileges granted to him, up to the minting of your own coin.
East Indian VOC quarters were established in Batavia on the island of Java, Portuguese was expelled from Ceylon and Malacca und first white colony was established in South Africa.
Hobhouse, Henry: “Finally, The VOC was ruled by eight foreign governments in Amboyna, Gang, Ternate, Makassar, Malacca, Ceylon, Java and the Cape of Good Hope. Factories stood in Bengal, on the banks of the Coromandel, in Surat, Thailand and the Gulf. Finally, Dutch East Indies Company was the richest company in the world, he helped finance the flourishing of Dutch civilization: Rembrandt, Vermeer, France Halsa, Vondel, Grotius, Spinoza, the largest publishing operation in the world in 17 century with numerous writers and poets, forgotten today, all artists architects and, primarily patrons.
Until his death, was VOC mister more 150 merchant ships, 40 warships, 20 thousand sailors, 10000 soldier and almost 50 thousands of civilians in her services; with all this, he still managed to pay dividends in the amount of 40%. It was the envy of competitors.
Its trade routes, related Japan, China, India, Persian Gulf, Africa and Europe, with all her countries to Amsterdam.
Selling spices in the Persian Gulf, salt in Zanzibar for cloves, in india carnation for gold, gold in China for making tea and silk, in japan silk for copper, and on the islands of Southeast Asia copper for spices. All domestic-Asian trade was almost as profitable, as the main trade relations between East and Europe. The company flourished, despite the loss, caused by pirates – hostages of the china sea, weather, European competitors, коррупция, inefficiency, theft and disease. VOC was unscrupulous: she created monopolies, destroyed local competitors and is forced to raise the prices of the most important spices by 180%.
Until the middle 18 century, VOC succeeded in strengthening its economic and political primacy. It flourished and became the largest monopoly company of its time and was at this point the first European power in India. After 198 years of the company's existence, the most significant in the history of world trade was disbanded 31 December 1799. As a result of poor management, debts 110 million guilders were to flee and they were taken over by the Dutch state.
Not only “United East Indies” to make history as the mother of all joint stock companies, as well as its shares.
Even before all the shares were made, its price was 10% to 15% above par, and already in 1622 its price was 300% above, and in 1720 at the height of speculation, its price was 1200%. When companies are in trouble, became known in 1781 year, prices fell by 25%. Dividends averaged 18% per year and high dividends were paid in 1606 on 75%. Shareholders do not receive their dividends regularly and are not always paid in cash, and partly in spices, corporate or government bonds. Soon the shareholders were widely known as “pepper bags amsterdam”, although they never managed to see proper balance. The later popular Dutch nickname for the once most influential companies in the world was V (ergann) O (nder) C (corruption), which means “Destroyed by corruption”.
