Stock Exchange, Railways and Company Law Essay Example | Topics and Well Written Essays - 1000 words

Stock Exchange, Railways and Company justice - Essay ExampleThe liability of the investors that have provided funds for the company is contain to these funds. Managers are elected to protect shareholders interests and their main task is to incr tranquilize their wealth with employees being a functional daily segment of this task. queen-size joint stock companies usually trade their shares to the public and thus the ownership and distribution of the benefits of the company fucking change over time.The fist joint stock companies occurred in the UK and in Europe and mainly dealt with trade. At the beginning of 19th Century the UK corporate rightfulness had no clear statement of whether corporation was a one-on-one or public person as the majority of the shares within such companies were held by private individuals and not by the state. US had experienced at this time some court cases which lead to the finding that identification of the separate corporate disposition must be cle ared. Industrial revolution has lead to spacious capital accumulation which was a very favorable field for development of joint stock companies which at the beginning of the nineteenth century in the UK industry prevailed in the sectors of insurance, utilities, transportation and shipping2 and were profoundly viewed as partnerships and not as corporations. The major faults within such a legal entity were the inability to sue and be sued use a joint name, the lack of power to proceed in common law against one partner, the feature that one partner could bind the whole against their will, the difficulty of getting rid of an unwanted partner, and generally the ease of fraud amongst partners3. Liverpools bill after numerous debates made the metal joint stock companies present yearly report on their actions to the House of Parliament. Shares were then personal property selling of which was a formal dealings and only after 1815 more than 140 company shares were quoted on stock exchang e which increased the privation for legalization of such trade and has lead to rising sues.Some scholars argue that some sort of limited liability which is now one of the joint stock company features, already existed in the late ordinal century as shareholders could not be arrested for their debt and be subject to bankruptcy charges, and the shareholders were not liable by personal possessions for the debt of the company. This may have lead to promoting incorporating of businessmen and unincorporated companies were in disadvantage comparing to the former. The law of the early eighteenth century was more tolerant to creditors rather than debtors as the latter could be charge into prison for minor debt and thus people who made up the incorporated company were as the legal body of the company themselves. Only in the gist of the 19th century the reform had brought the corporate personality separation where the persons within incorporated companies were different from the joint stock venture entity, while investors within unincorporated company were as one. This difference can be seen even from the referral to such companies in the press and literature, where until the middle of the nineteenth century incorporated and unincorporated companies were both referred to as they.From the middle of the