299:– 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.
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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
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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.
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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.
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Companies Act, 1856". The New Law and Practice of Joint Stock Companies. Fourth Edition. London. 1857. Pages
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and with it obtain limited liability for operating a business. Companies had until recently been prohibited, as a result of the
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My object at present is not to urge the adoption of limited liability. I am arguing in favour of human
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Harrison and George A Cape. The Joint Stock Companies Act, 1856. London. 1856.
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The Joint Stock
Companies Bill was introduced to Parliament by the then Vice President of the
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An Act for the
Incorporation and Regulation of Joint Stock Companies and other Associations.
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Development of the Business Corporation in England, 1800–1867
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Wordsworth. The Joint Stock Companies Act, 1856.
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2621:
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2616:
2614:
2611:
2609:
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2601:
2599:
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2579:
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2526:
2523:
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2518:
2516:
2513:
2511:
2508:
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2503:
2501:
2498:
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2256:
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2248:
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2238:
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2218:
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2208:
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2203:
2201:
2198:
2196:
2193:
2191:
2188:
2186:
2183:
2181:
2178:
2176:
2173:
2171:
2168:
2166:
2163:
2161:
2158:
2156:
2153:
2151:
2148:
2146:
2143:
2141:
2138:
2136:
2133:
2131:
2128:
2126:
2123:
2121:
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2111:
2108:
2106:
2103:
2101:
2098:
2096:
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2078:
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2073:
2071:
2068:
2066:
2063:
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2053:
2051:
2048:
2046:
2043:
2042:
2038:
2035:
2033:
2030:
2028:
2025:
2023:
2020:
2018:
2015:
2013:
2010:
2008:
2005:
2003:
2000:
1998:
1995:
1993:
1990:
1988:
1985:
1983:
1980:
1978:
1975:
1973:
1970:
1968:
1965:
1963:
1960:
1958:
1955:
1953:
1950:
1948:
1945:
1943:
1940:
1938:
1935:
1933:
1930:
1928:
1925:
1923:
1920:
1918:
1915:
1913:
1910:
1908:
1905:
1903:
1900:
1898:
1895:
1893:
1890:
1888:
1885:
1883:
1880:
1878:
1875:
1873:
1870:
1868:
1865:
1863:
1860:
1858:
1855:
1853:
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1845:
1843:
1840:
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1835:
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1825:
1823:
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1815:
1813:
1810:
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1780:
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1775:
1773:
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1765:
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1760:
1758:
1755:
1753:
1750:
1748:
1745:
1743:
1740:
1738:
1735:
1733:
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1728:
1725:
1723:
1720:
1718:
1715:
1713:
1710:
1708:
1705:
1703:
1700:
1698:
1695:
1693:
1690:
1688:
1685:
1683:
1680:
1678:
1675:
1673:
1670:
1668:
1665:
1663:
1660:
1658:
1655:
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1635:
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1630:
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1623:
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1615:
1613:
1610:
1608:
1605:
1603:
1600:
1598:
1595:
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1588:
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1583:
1580:
1578:
1575:
1573:
1570:
1568:
1565:
1563:
1560:
1558:
1555:
1553:
1550:
1548:
1545:
1544:
1542:
1535:
1531:
1525:
1522:
1520:
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1515:
1512:
1511:
1509:
1507:
1502:
1496:
1493:
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1488:
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1483:
1481:
1478:
1476:
1473:
1471:
1468:
1466:
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1456:
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1451:
1448:
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1443:
1441:
1438:
1436:
1433:
1431:
1428:
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1423:
1421:
1418:
1416:
1413:
1411:
1408:
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1401:
1398:
1396:
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1388:
1386:
1383:
1381:
1378:
1376:
1373:
1371:
1368:
1366:
1363:
1361:
1358:
1356:
1353:
1351:
1348:
1346:
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1341:
1338:
1336:
1333:
1331:
1328:
1326:
1323:
1321:
1318:
1316:
1313:
1311:
1308:
1306:
1303:
1301:
1298:
1296:
1293:
1291:
1288:
1286:
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1281:
1278:
1276:
1273:
1271:
1268:
1266:
1263:
1261:
1258:
1256:
1253:
1251:
1248:
1246:
1243:
1241:
1238:
1236:
1233:
1231:
1228:
1227:
1225:
1223:
1217:
1207:
1204:
1203:
1201:
1197:
1191:
1188:
1186:
1183:
1181:
1178:
1176:
1173:
1171:
1168:
1166:
1163:
1161:
1158:
1156:
1153:
1151:
1148:
1146:
1143:
1141:
1138:
1136:
1133:
1131:
1128:
1126:
1123:
1121:
1118:
1116:
1113:
1109:
1106:
1105:
1104:
1101:
1099:
1096:
1094:
1091:
1089:
1086:
1082:
1079:
1078:
1077:
1074:
1072:
1069:
1067:
1064:
1062:
1059:
1057:
1054:
1052:
1049:
1047:
1044:
1042:
1039:
1037:
1034:
1032:
1029:
1027:
1024:
1022:
1019:
1017:
1014:
1012:
1009:
1007:
1006:
1002:
1000:
997:
993:
990:
989:
988:
985:
983:
980:
978:
975:
973:
970:
968:
965:
963:
960:
958:
955:
953:
950:
948:
945:
943:
940:
938:
935:
933:
930:
928:
925:
923:
920:
918:
915:
913:
910:
908:
905:
903:
900:
898:
895:
893:
890:
888:
885:
883:
880:
878:
875:
873:
870:
868:
865:
863:
860:
858:
855:
853:
850:
848:
845:
843:
840:
838:
835:
833:
830:
828:
825:
823:
820:
818:
815:
813:
810:
808:
805:
803:
800:
798:
795:
793:
790:
788:
785:
783:
780:
778:
775:
773:
770:
768:
765:
763:
760:
758:
755:
753:
750:
748:
745:
743:
740:
738:
735:
733:
730:
728:
725:
723:
720:
718:
715:
713:
710:
708:
705:
703:
700:
698:
695:
693:
690:
688:
685:
683:
680:
678:
675:
673:
670:
668:
665:
663:
660:
658:
655:
653:
650:
648:
645:
643:
640:
638:
635:
633:
630:
628:
625:
623:
622:
621:Temp. incert.
618:
616:
613:
611:
608:
606:
603:
602:
600:
596:
593:
588:
584:
578:
575:
573:
570:
568:
565:
564:
562:
558:
554:
547:
542:
540:
535:
533:
528:
527:
524:
517:
514:
511:
508:
507:
497:
495:0-19-928531-4
491:
487:
482:
477:
476:
469:
465:
463:0-521-66275-3
459:
455:
450:
447:
443:
440:
436:
432:
429:
425:
422:
418:
415:
411:
408:
404:
401:
397:
396:
385:
379:
373:
367:
361:
355:
348:
344:
338:
334:
324:
321:
319:
316:
314:
313:Companies Act
311:
310:
304:
300:
298:
289:
286:
282:
278:
274:
258:
249:
245:
242:This section
240:
237:
233:
232:
229:
226:
223:Unlike other
216:
215:legislation.
214:
210:
206:
202:
198:
185:
182:
179:
175:
172:
169:
167:
163:
157:
154:
152:
149:
147:
144:
142:
139:
137:
134:
132:
129:
127:
124:
123:
121:
117:
112:
108:
106:
102:
98:
96:
92:
87:
83:
77:
74:
71:
69:Introduced by
67:
63:
60:
58:
54:
50:
48:
44:
40:
30:
25:
16:
2818:1994 to date
2753:institutions
2712:1972 to date
2688:Short titles
2675:
1504:Acts of the
1003:
620:
485:
474:
453:
435:Bibliography
378:
366:
354:
349:of this Act.
337:
302:
291:
270:
252:
248:adding to it
243:
222:
196:
194:
105:Commencement
99:14 July 1856
95:Royal assent
15:
577:Magna Carta
343:short title
277:Robert Lowe
166:Repealed by
73:Robert Lowe
2896:Categories
2701:(formerly
393:References
384:cols 897–9
285:Bubble Act
177:Relates to
47:Long title
1524:1751–1800
1519:1701–1750
1315:1760–1764
1310:1755–1759
1305:1750–1754
1300:1745–1749
1295:1740–1744
1290:1735–1739
1285:1730–1734
1280:1725–1729
1275:1720–1724
1270:1715–1719
647:1422–1460
642:1413–1421
637:1399–1411
632:1377–1397
627:1327–1376
615:1308–1325
610:1275–1307
605:1225–1267
439:Catalogue
347:section 1
255:July 2010
2751:devolved
2728:measures
307:See also
219:Overview
57:Citation
1514:to 1700
1206:to 1707
409:to 717.
402:to 119.
372:col 131
360:col 130
297:liberty
207:of the
492:
460:
448:to 83.
423:to 70.
267:Debate
341:This
329:Notes
89:Dates
64:c. 47
2827:for
2793:List
2781:List
2774:and
2765:List
2735:List
2668:2024
2663:2023
2658:2022
2653:2021
2648:2020
2643:2019
2638:2018
2633:2017
2628:2016
2623:2015
2618:2014
2613:2013
2608:2012
2603:2011
2598:2010
2593:2009
2588:2008
2583:2007
2578:2006
2573:2005
2568:2004
2563:2003
2558:2002
2553:2001
2548:2000
2540:1999
2535:1998
2530:1997
2525:1996
2520:1995
2515:1994
2510:1993
2505:1992
2500:1991
2495:1990
2490:1989
2485:1988
2480:1987
2475:1986
2470:1985
2465:1984
2460:1983
2455:1982
2450:1981
2445:1980
2440:1979
2435:1978
2430:1977
2425:1976
2420:1975
2415:1974
2410:1973
2405:1972
2400:1971
2395:1970
2390:1969
2385:1968
2380:1967
2375:1966
2370:1965
2365:1964
2360:1963
2355:1962
2350:1961
2345:1960
2340:1959
2335:1958
2330:1957
2325:1956
2320:1955
2315:1954
2310:1953
2305:1952
2300:1951
2295:1950
2290:1949
2285:1948
2280:1947
2275:1946
2270:1945
2265:1944
2260:1943
2255:1942
2250:1941
2245:1940
2240:1939
2235:1938
2230:1937
2225:1936
2220:1935
2215:1934
2210:1933
2205:1932
2200:1931
2195:1930
2190:1929
2185:1928
2180:1927
2175:1926
2170:1925
2165:1924
2160:1923
2155:1922
2150:1921
2145:1920
2140:1919
2135:1918
2130:1917
2125:1916
2120:1915
2115:1914
2110:1913
2105:1912
2100:1911
2095:1910
2090:1909
2085:1908
2080:1907
2075:1906
2070:1905
2065:1904
2060:1903
2055:1902
2050:1901
2045:1900
2037:1899
2032:1898
2027:1897
2022:1896
2017:1895
2012:1894
2007:1893
2002:1892
1997:1891
1992:1890
1987:1889
1982:1888
1977:1887
1972:1886
1967:1885
1962:1884
1957:1883
1952:1882
1947:1881
1942:1880
1937:1879
1932:1878
1927:1877
1922:1876
1917:1875
1912:1874
1907:1873
1902:1872
1897:1871
1892:1870
1887:1869
1882:1868
1877:1867
1872:1866
1867:1865
1862:1864
1857:1863
1852:1862
1847:1861
1842:1860
1837:1859
1832:1858
1827:1857
1822:1856
1817:1855
1812:1854
1807:1853
1802:1852
1797:1851
1792:1850
1787:1849
1782:1848
1777:1847
1772:1846
1767:1845
1762:1844
1757:1843
1752:1842
1747:1841
1742:1840
1737:1839
1732:1838
1727:1837
1722:1836
1717:1835
1712:1834
1707:1833
1702:1832
1697:1831
1692:1830
1687:1829
1682:1828
1677:1827
1672:1826
1667:1825
1662:1824
1657:1823
1652:1822
1647:1821
1642:1820
1637:1819
1632:1818
1627:1817
1622:1816
1617:1815
1612:1814
1607:1813
1602:1812
1597:1811
1592:1810
1587:1809
1582:1808
1577:1807
1572:1806
1567:1805
1562:1804
1557:1803
1552:1802
1547:1801
1495:1800
1490:1799
1485:1798
1480:1797
1475:1796
1470:1795
1465:1794
1460:1793
1455:1792
1450:1791
1445:1790
1440:1789
1435:1788
1430:1787
1425:1786
1420:1785
1415:1784
1410:1783
1405:1782
1400:1781
1395:1780
1390:1779
1385:1778
1380:1777
1375:1776
1370:1775
1365:1774
1360:1773
1355:1772
1350:1771
1345:1770
1340:1769
1335:1768
1330:1767
1325:1766
1320:1765
1265:1714
1260:1713
1255:1712
1250:1711
1245:1710
1240:1709
1235:1708
1230:1707
1190:1706
1185:1705
1180:1704
1175:1703
1170:1702
1165:1701
1160:1700
1155:1698
1150:1697
1145:1696
1140:1695
1135:1694
1130:1693
1125:1692
1120:1691
1115:1690
1103:1689
1098:1688
1093:1685
1088:1680
1076:1679
1071:1678
1066:1677
1061:1675
1056:1672
1051:1670
1046:1667
1041:1666
1036:1665
1031:1664
1026:1663
1021:1662
1016:1661
1011:1660
999:1640
987:1627
982:1625
977:1623
972:1620
967:1609
962:1606
957:1605
952:1603
947:1601
942:1597
937:1592
932:1588
927:1586
922:1584
917:1580
912:1575
907:1572
902:1571
897:1566
892:1562
887:1558
882:1557
877:1555
872:1554
867:1553
862:1551
857:1549
852:1548
847:1547
842:1546
837:1545
832:1543
827:1542
822:1541
817:1540
812:1539
807:1536
802:1535
797:1534
792:1533
787:1532
782:1531
777:1530
772:1529
767:1523
762:1515
757:1514
752:1513
747:1512
742:1511
737:1509
732:1503
727:1496
722:1495
717:1491
712:1488
707:1487
702:1485
697:1483
692:1482
687:1477
682:1474
677:1472
672:1468
667:1467
662:1464
657:1463
652:1461
490:ISBN
458:ISBN
195:The
109:1856
407:684
250:.
205:Act
2898::
437:.
400:61
275:,
2705:)
545:e
538:t
531:v
498:.
466:.
446:1
441:.
421:1
257:)
253:(
199:(
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.