Quote Originally Posted by walter View Post
Because all entity's are a franchise of the State.

Franchise

A special privilege to do certain things that is conferred by government on an individual or a corporation and which does not belong to citizens generally of common right,

Read the whole definition at
http://legal-dictionary.thefreedictionary.com/franchise
According to Blackstone, a franchise was the exercise of a sovereign prerogative by a subject under permission or grant of course.

I guess you could say it was an avenue for the king to monetize his peculiar rights.