Early attempts at deciding which magical creatures should be designated 'beasts' were extremely crude.
Burdock Muldoon, Chief of the Wizards' Council (The Wizards' Council preceded the Ministry of Magic) in the fourteenth century, decreed that any member of the magical community that walked on two legs would henceforth be granted the status of 'being', all others to remain 'beasts'. In a spirit of friendship he summoned all 'beings' to meet with the wizards at a summit to discuss new magical laws and found to his intense dismay that he had miscalculated. The meeting hall was crammed with goblins who had brought with them as many two-legged creatures as they could find. As Bathilda Bagshot tells us in A History of Magic:
Little could be heard over the squawking of the Diricawls, the moaning of the Augureys and the relentless, piercing song of the Fwoopers. As wizards and witches attempted to consult the papers before them, sundry pixies and fairies whirled around their heads, giggling and jabbering. A dozen or so trolls began to smash apart the chamber with their clubs, while hags glided about the place in search of children to eat. The Council Chief stood up to open the meeting, slipped on a pile of Porlock dung and ran cursing from the hall.
As we see, the mere possession of two legs was no guarantee that a magical creature could or would take an interest in the affairs of wizard government. Embittered, Burdock Muldoon forswore any further attempts to integrate non-wizard members of the magical community into the Wizards' Council.
Muldoon's successor, Madame Elfrida Clagg, attempted to redefine 'beings' in the hope of creating closer ties with other magical creatures. 'Beings', she declared, were those who could speak the human tongue. All those who could make themselves understood to Council members were therefore invited to join the next meeting.