A proprietary colony was a type of colonial administration in English America during the 17th century, and in the East Indies up to the 1850s. In the British Empire, all land belonged to the monarch, and it was his/her authority that governed the colonies. Proprietary colonies in America were governed by a lord proprietor, who, holding authority by virtue of a royal charter, usually exercised that authority almost as an independent sovereign. These colonies were distinct from Crown colonies in that they were commercial enterprises established under the authority of the crown. Here are some key features of a proprietary colony:
- Land grants were given by the King to one or a few favored men called proprietors, who were to administer these areas for the Crown but in a manner to be determined by them.
- The proprietors appointed the Governor and his Council, determined the laws (but they had to be approved by the Crown), and ran the territory as they saw fit.
- Proprietary governors had legal responsibilities over the colony as well as responsibilities to shareholders to ensure the security of their investments.
- Proprietary colonies were mostly inefficient because the proprietors were, for the most part, like absentee landlords. Many never even visited the colonies they owned. By the early 18th century, nearly all of the proprietary colonies had either surrendered their charters to the crown to become royal colonies or ceased to exist.
Examples of proprietary colonies include Maryland and Pennsylvania.