IIRC on a small scale governance by company/corporation would be something like the early coal mining industry. The company/corporation owned the houses, stores, schools, churches, etc. The employees had no say in their pay, working hours, benefits, or working conditions. As long as the company/corporation did not break local or, in the case of the USA, federal laws they could and did get away with a lot of shenanigans.
Sure. I'm guessing the old "company town" was one of the inspirations for this particular "government" type.
But, from the perspective of a more general consideration of the "Book 3" Government types, the "company" still needs "the government" to protect its property rights, secure its contracts, manage the currency, and a provide whole host of other legal and administrative "public goods" which enable it to conduct its business profitably. So, whenever we start thinking in more detail about a "Type 1 Government" we likely want to start by asking ourselves where (and what) the ~actual~ government is. . . .
Cheers,
David
--
"The Federation Government owns a bigger interest in the Company than the public realizes, too. . . ." - Carlos von Schlichten (H. Beam Piper), ~Uller Uprising~.