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In 1612, it became the first 'corporation' in intercontinental trade with 'locked in' capital and limited liability. [12] The joint-stock company became a more viable financial structure than previous guilds or state-regulated companies.
A limited liability company (LLC) is the United States-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation . [ 1 ]
The world's first modern limited liability law was enacted by the state of New York in 1811. [15] In England it became more straightforward to incorporate a joint stock company following the Joint Stock Companies Act 1844, although investors in such companies carried unlimited liability until the Limited Liability Act 1855.
These two features - a simple registration procedure and limited liability - were subsequently codified in the world's first modern company law, the Joint Stock Companies Act 1856. A series of Companies Acts up to the present Companies Act 2006 have essentially retained the same fundamental features.
The Joint Stock Companies Act 1844 created a centralised register of companies, enabled companies to be incorporated by registration, and established the office of the registrar; the Joint Stock Companies Act 1856 mandated separate registrars for each of the three UK jurisdictions. Initially just a brand, Companies House became an official ...
The 1844 act created the Registrar of Joint Stock Companies, empowered to register companies by a two-stage process. The first, provisional, stage cost £5 (equivalent to £632 in 2023) and did not confer corporate status, which arose after completing the second stage for another £5. [1] However, there was still no limited liability and ...
c. 18) or Bubble Act [4] The Trading Companies Act 1834 (4 & 5 Will. 4. c. 94) The Chartered Companies Act 1837 (7 Will. 4 & 1 Vict. c. 73) The Joint Stock Companies Act 1844 (7 & 8 Vict. c. 110) The Companies Clauses Consolidation Act 1845 (8 & 9 Vict. c. 16) The Limited Liability Act 1855 (18 & 19 Vict. c. 133) The Joint Stock Companies Act ...
More importantly, the East India Company demonstrated inherent flaws in the corporate form. The division between owners and managers in a joint-stock company, and the limited legal liability this division was based on guaranteed that stockholders would be apathetic about a company's activities as long as the company continued to be profitable.