History of Company Law
Early Companies Legislation
In order to better protect investors, bring greater certainty to the operation of joint stock companies and encourage their formation, a series of Acts were passed in England between 1844 and 1856 that remain the foundation of modern Australian company law. These Acts made a clear distinction between companies and partnerships by providing that all undertakings of more than 20 persons were required to incorporate as companies. It was open for any enterprise that met the statutory requirements to incorporate and be registered as a company.

Limited liability was permitted after legislation was passed in 1855 and 1856. The various statutes dealing with companies were consolidated in the English Companies Act 1862 (UK), which established all registered companies as separate legal entities distinct from their shareholders.

By the late 19th century, many family businesses and partnerships used the companies legislation mainly to gain the advantage of limited liability. These businesses were usually conducted by an individual or a small number of partners with family members, friends or employees making up the required minimum number o shareholders.

	Created by clairea28 over 9 years ago

Tertiary/University MLL221 - Corporate Law Note on Regulatory Framework, created by clairea28 on 12/02/2015.