Unlike other acts of Parliament that preceded it, the 1856 act provided a simple administrative procedure by which any group of seven people could register a limited liability company for themselves. Companies involved in banking and insurance were explicitly excluded from the provisions of the act.
This section needs expansion. You can help by adding to it. (July 2010)
Debateedit
The Joint Stock Companies Bill was introduced to Parliament by the then Vice President of the Board of Trade, Robert Lowe. In doing so he proclaimed the right of every citizen to have freedom of contract and with it obtain limited liability for operating a business. Companies had until recently been prohibited, as a result of the Bubble Act and the stock market panics of the early 18th century. There was still a lot of suspicion of companies, but Lowe rejected the idea that a limited company is inherently subject to fraud, and proposed the suffix "Ltd" to make businesses aware of limited liability.
A company formed on the principle of limited liability carries on the face of it something like prudence and caution. Its shareholders seem to say, "we have entered into a partnership, but it is impossible to tell what may happen, and since the company may fail, we will not risk all we possess in the undertaking...[2] My object at present is not to urge the adoption of limited liability. I am arguing in favour of human liberty – that people may be permitted to deal how and with whom they choose without the officious interference of the state; and my opinion will not be shaken even though very few limited companies be established. Every man has a right to choose for himself between the two principles, and it is ill advised legislation which steps in between him and the exercise of that right. It is right the experiment should be tried; and, in my judgment, the principle we should adopt is this, – not to throw the slightest obstacle in the way of limited companies being formed – because the effect of that would be to arrest ninety-nine good schemes in order that the bad hundredth might be prevented; but to allow them all to come into existence, and when difficulties arise, to arm the courts of justice with sufficient powers to check extravagance or roguery in the management of companies, and to save them from the wreck in which they may be involved.[3]
The third reading of the bill took place on 2 June 1856, and passed easily.[4]
W Paterson (ed). "Joint Stock Companies Act". The Practical Statutes of the Session 1856. London. 1856. Pages 61 to 119.
Welsby and Beavan. Chitty's Collection of Statutes. Third Edition. 1865. Volume 1. Title "Companies (Joint Stock). Pages 684 to 717.
Charles Wordsworth. The Joint Stock Companies Act, 1856. Fourth Edition. Shaw and Sons. London. 1856.
Charles Wordsworth. The New Joint Stock Company Law. Shaw and Sons. London. 1859. Pages 1 to 70.
Henry Thring. The Joint Stock Companies Act, 1856. London. 1856.
William George Harrison and George A Cape. The Joint Stock Companies Act, 1856. London. 1856. Bibliography. Catalogue.
Edward W Cox. "The Joint Stock Companies Act, 1856". The New Law and Practice of Joint Stock Companies. Fourth Edition. London. 1857. Pages 1 to 83.
Harris, R. (2000). Industrialising English Law: Entrepreneurship and Business Organisation, 1720–1844. Cambridge, UK: Cambridge University Press. ISBN0-521-66275-3.
Hunt, B.C. (1936). The Development of the Business Corporation in England, 1800–1867. Cambridge, MA: Harvard University Press.
Mayson, S.W; et al. (2005). Mayson, French & Ryan on Company Law. London: Oxford University Press. ISBN0-19-928531-4.
External linksedit
Joint Stock Companies Act 1856 Table B, original text
Joint Stock Companies Act 1856, explanations
April 08, 2024
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The Joint Stock Companies Act 1856 19 amp 20 Vict c 47 was an Act of the Parliament of the United Kingdom It was a consolidating statute recognised as the founding piece of modern United Kingdom company law legislation Joint Stock Companies Act 1856 1 Act of ParliamentParliament of the United KingdomLong titleAn Act for the Incorporation and Regulation of Joint Stock Companies and other Associations Citation19 amp 20 Vict c 47Introduced byRobert LoweTerritorial extent England and Wales ScotlandDatesRoyal assent14 July 1856Commencement1856Other legislationRepeals revokesJoint Stock Companies Act 1844Joint Stock Companies Winding Up Act 1844Joint Stock Companies Ireland Act 1845Joint Stock Companies Act 1847Joint Stock Companies Act 1848Joint Stock Companies Act 1849Limited Liability Act 1855Repealed byCompanies Act 1862Relates toCompanies Act 2006Status Repealed Contents 1 Overview 2 Debate 3 See also 4 Notes 5 References 6 External linksOverview editUnlike other acts of Parliament that preceded it the 1856 act provided a simple administrative procedure by which any group of seven people could register a limited liability company for themselves Companies involved in banking and insurance were explicitly excluded from the provisions of the act This section needs expansion You can help by adding to it July 2010 Debate editThe Joint Stock Companies Bill was introduced to Parliament by the then Vice President of the Board of Trade Robert Lowe In doing so he proclaimed the right of every citizen to have freedom of contract and with it obtain limited liability for operating a business Companies had until recently been prohibited as a result of the Bubble Act and the stock market panics of the early 18th century There was still a lot of suspicion of companies but Lowe rejected the idea that a limited company is inherently subject to fraud and proposed the suffix Ltd to make businesses aware of limited liability A company formed on the principle of limited liability carries on the face of it something like prudence and caution Its shareholders seem to say we have entered into a partnership but it is impossible to tell what may happen and since the company may fail we will not risk all we possess in the undertaking 2 My object at present is not to urge the adoption of limited liability I am arguing in favour of human liberty that people may be permitted to deal how and with whom they choose without the officious interference of the state and my opinion will not be shaken even though very few limited companies be established Every man has a right to choose for himself between the two principles and it is ill advised legislation which steps in between him and the exercise of that right It is right the experiment should be tried and in my judgment the principle we should adopt is this not to throw the slightest obstacle in the way of limited companies being formed because the effect of that would be to arrest ninety nine good schemes in order that the bad hundredth might be prevented but to allow them all to come into existence and when difficulties arise to arm the courts of justice with sufficient powers to check extravagance or roguery in the management of companies and to save them from the wreck in which they may be involved 3 The third reading of the bill took place on 2 June 1856 and passed easily 4 See also editCompanies Act Joint Stock Companies Act 1844 Limited Liability Act 1855Notes edit This short title was conferred on this Act by section 1 of this Act HC Deb 1 February 1856 vol 140 col 130 HC Deb 1 February 1856 vol 140 col 131 HC Deb 2 June 1856 vol 142 cols 897 9References editW Paterson ed Joint Stock Companies Act The Practical Statutes of the Session 1856 London 1856 Pages 61 to 119 Welsby and Beavan Chitty s Collection of Statutes Third Edition 1865 Volume 1 Title Companies Joint Stock Pages 684 to 717 Charles Wordsworth The Joint Stock Companies Act 1856 Fourth Edition Shaw and Sons London 1856 Charles Wordsworth The New Joint Stock Company Law Shaw and Sons London 1859 Pages 1 to 70 Henry Thring The Joint Stock Companies Act 1856 London 1856 William George Harrison and George A Cape The Joint Stock Companies Act 1856 London 1856 Bibliography Catalogue Edward W Cox The Joint Stock Companies Act 1856 The New Law and Practice of Joint Stock Companies Fourth Edition London 1857 Pages 1 to 83 Harris R 2000 Industrialising English Law Entrepreneurship and Business Organisation 1720 1844 Cambridge UK Cambridge University Press ISBN 0 521 66275 3 Hunt B C 1936 The Development of the Business Corporation in England 1800 1867 Cambridge MA Harvard University Press Mayson S W et al 2005 Mayson French amp Ryan on Company Law London Oxford University Press ISBN 0 19 928531 4 External links editJoint Stock Companies Act 1856 Table B original text Joint Stock Companies Act 1856 explanations Retrieved from https en wikipedia org w index php title Joint Stock Companies Act 1856 amp oldid 1211035533, wikipedia, wiki, book, books, library,
