Prior to that date, all subdivisions of Shireroth were created under the system of Old Feudalism. The power to create subdivisions laid with the Kaiser, who would appoint individuals to positions of nobility and grant them land. The various nobles could also bestow titles and create subdivisions lower in the hierarchy. The New Feudalism changed that, placing the fate of the subdivisions of Shireroth directly into the hands of the people. Each current citizen was granted a parcel of land--a County--to do with as they pleased. In most cases, like those of Naudia'Diva, Monty Crisco, Antya, or Hyperborea, the parcel of land had much to do with the accomplishments of the citizen, though by no means were all Counties granted in such a faction: Byzantia and Woodshire are prime examples of the second type.
The New Feudalism created a Noble Commons for nobles to intermingle and make Feudal Contracts with each other to form new subdivisons. Two Counties could ally together under contract and become a Barony; five allying together make a Duchy. In a slight bend of the rules (or perhaps rewarding preexisting contracts), two Baronies--regardless of size--were allowed to ally together and can create a Duchy in that fashion.
The New Feudalism, by accident or otherwise, also handed the Landsraad--and its voting powers--directly into the hands of the people...in a sense. The citizens of Shireroth were able to choose who speaks in the Landsraad, through something of a meritocratic process. Leaders of the subdivisions were usually chosen within the contracts laid down at the creation of a subdivision. As such, good leaders were given the support of like-minded followers--and, because of that support, gained the ability to speak in the Landsraad.
New Feudalism eventually proved unpopular. It was difficult to keep track of the various groupings, some of Shireroth's most traditional territories like Yardistan became marginalized, and as the nation began to decline there were not enough people to keep it interesting. During the slump of 2006, New Feudalism was nominally repealed, although the forum administration were too weak to enact any major changes. During the revival of November 2007, Kaiser Mors V swept away New Feudalism's last few remnants and returned to a variant of the old system.