First of all "Early incorported entities were established by charter (i.e. by an ad hoc act granted by a monarch or passed by a parliament or legislature)."
they are important becuase... "
Corporate Governance as Risk Mitigation. Corporate governance is of paramount importance to a company and is almost as important as its primary business plan. ... A corporation without a system of corporate governance is often regarded as a body without a soul or conscence."
Hope this helps!:)
@SamSamySamantha