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These colonies were distinct from royal colonies in that they were commercial enterprises established under authority of the crown. Proprietary Governors had legal responsibilities over the colony as well as responsibilities to shareholders to ensure the security of their investments.
The proprietary system was a mostly inefficient system, in that the proprietors were, for the most part, like absentee landlords. Many never even visited the colonies they owned. By the early 1700s, nearly all of the proprietary colonies had either surrendered their charters to the crown to become royal colonies, or else had significant limitations placed on them by the crown.