From Privilege to Right : Themes in the Emergence of Limited Liability
Despite widespread disagreement as to its merits, the doctrine of limited liability was formally introduced into English law by the Limited Liability Act 1855. The Joint Stock Companies Act 1856 substantially modified the 1855 Act, effectively rendering limited liability available as of right. It also extended the doctrine to Scots law. Prior to these enactments, the emergence of limited liability in the United Kingdom had been a very gradual process, granted on rare occasions. A dramatic change in government policy, therefore, occurred between 1855 and 1856 which, to date, has not been explored fully. This paper examines the pertinent legal, economic, social and political themes underlying this sudden change. The Government's desire to promote widespread investment, a change of strategy in its regulation of fraud and speculation in companies and the growing use of contractual limitations of liability in commerce are identified as contributing factors. However, this paper concludes that the political climate of 1855–1856 explains both the timing of the change in policy and the form which the doctrine adopted. The 1855 Act was not only rushed but forced through Parliament at the height of the widely unpopular Crimean War. This stemmed from a desire to appease growing class unrest with the privilege with which limited liability was associated and to increase government revenue, through the facilitation of enterprise and investment, at a time of need. Rational and detailed debate as to the wider implications of the doctrine was absent as a result. Importantly, the effects of the legislation upon non-contractual creditors, such as tort and delict victims, were not considered during the parliamentary debates. It is contended that the 1855 and 1856 Acts were not intended to apply to this category of creditor
Year of publication: |
2012
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Authors: | Mackie, Colin |
Publisher: |
[2012]: [S.l.] : SSRN |
Subject: | Beschränkte Haftung | Limited liability | Haftung | Liability | Großbritannien | United Kingdom |
Saved in:
freely available
Extent: | 1 Online-Ressource (22 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | In: Juridical Review, Vol. 4, p. 293, 2011 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 1, 2011 erstellt |
Classification: | K22 - Corporation and Securities Law |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013112828
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