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Joint Stock Companies Act 1856
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The Joint Stock Companies Act 1856 (19 & 20 Vict. c.47) was a consolidating statute, recognised as the founding piece of modern UK company law legislation.
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.
Joint Stock Companies Bill was introduced to Parliament by the then Vice President of the Board of Trade, Mr Robert Lowe.
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Encyclopedia
The Joint Stock Companies Act 1856 (19 & 20 Vict. c.47) was a consolidating statute, recognised as the founding piece of modern UK company law legislation.
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.
Enactment
The Joint Stock Companies Bill was introduced to Parliament by the then Vice President of the Board of Trade, Mr 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, so Lowe refuted the idea that a limited company is inherently subject to fraud, and proposed the suffix of "Ltd" to make businesses aware of limited liability.
See also
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