How were proprietary colonies governed?

Answer 1

The British kings repeatedly granted territory to one or more individuals, rather than to a chartered company. These men, called proprietors, or sometimes "Lords Proprietors", were invested not only with property under private law but also with gubernatorial authority to administer it with extraordinary authority, somewhat recalling the earl palatine before the Glorious Revolution.

The method was most notably used during the early colonization along the Atlantic coasts of North America and the Caribbean by Great Britain. Most were run under a charter agreement, which is reviewed by the ruling Monarch. A good example is the Province of Pennsylvania, granted to William Penn (the state still bears the name meaning 'woodlands of Penn') by King Charles II of England.

This type of indirect rule eventually fell out of favor as the English Sovereigns sought to concentrate their power and authority, and the colonies were converted to crown colonies, i.e. governed by officials appointed by the King.