The introduction of limited liability in nineteenth century England
In this paper I have analysed the development of company law from 1720 through to 1857. During this long period of time, company law assumed the characteristics it has now. At the starting point, company law stood with incorporation granted by the Crown or Parliament on one side and partnership regulated by common law on the other. The development of the modern corporation needed the definition of what were the problems connected to the fact that a firm is run in association and what is the legal framework that allows to solve efficiently with the lowest costs these problems. In this paper I show that the introduction of limited liability gets its meaning from the exact definition of many other aspects of company life, such as bankruptcy procedures, directorsâ€™ power and responsibility, shareholders rights, publicity regime for company acts. Accordingly itâ€™s shown that the introduction of the limited liability regime canâ€™t be studied in isolation and it was just the last step in a complex development process.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: Via Inama 5, 38100 Trento|
Web page: http://www.openloc.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carr, Jack L & Mathewson, G Frank, 1988. "Unlimited Liability as a Barrier to Entry," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 766-84, August.
- Michael Smart, 1996. "On limited liability and the development of capital markets: An historical analysis," Working Papers msmart-96-02, University of Toronto, Department of Economics.
- Mark I. Weinstein, 2003. "Share Price Changes and the Arrival of Limited Liability in California," The Journal of Legal Studies, University of Chicago Press, vol. 32(1), pages 1-25, 01.
- Patterson, Margaret & Reiffen, David, 1990. "The Effect of the Bubble Act on the Market for Joint Stock Shares," The Journal of Economic History, Cambridge University Press, vol. 50(01), pages 163-171, March.
- Forbes, Kevin F, 1986. "Limited Liability and the Development of the Business Corporation," Journal of Law, Economics and Organization, Oxford University Press, vol. 2(1), pages 163-77, Spring.
- Hickson, Charles R. & Turner, John D., 2003. "Shareholder liability regimes in nineteenth-century English banking: The impact upon the market for shares," European Review of Economic History, Cambridge University Press, vol. 7(01), pages 99-125, April.
- Graeme G. Acheson & John D. Turner, 2006. "The impact of limited liability on ownership and control: Irish banking, 1877-1914 -super-1," Economic History Review, Economic History Society, vol. 59(2), pages 320-346, 05.
- Hickson, Charles R. & Turner, John D. & McCann, Claire, 2005. "Much ado about nothing: the limitation of liability and the market for 19th century Irish bank stock," Explorations in Economic History, Elsevier, vol. 42(3), pages 459-476, July.
- Christine E. Amsler & Robin L. Bartlett & Craig J. Bolton, 1981. "Thoughts of Some British Economists on Early Limited Liability and Corporate Legislation," History of Political Economy, Duke University Press, vol. 13(4), pages 774-793, Winter.
- Grossman, Peter Z, 1995. "The Market for Shares of Companies with Unlimited Liability: The Case of American Express," The Journal of Legal Studies, University of Chicago Press, vol. 24(1), pages 63-85, January.
- Garber, Peter M, 1990. "Famous First Bubbles," Journal of Economic Perspectives, American Economic Association, vol. 4(2), pages 35-54, Spring.
- Winton, Andrew, 1993. " Limitation of Liability and the Ownership Structure of the Firm," Journal of Finance, American Finance Association, vol. 48(2), pages 487-512, June.
When requesting a correction, please mention this item's handle: RePEc:trn:utwpol:1116. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francesco Rentocchini)
If references are entirely missing, you can add them using this form.