• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

To what extent was the rise to dominance of company law in the nineteenth and early twentieth centuries the inevitable consequence of technological advance?

Extracts from this document...

Introduction

To what extent was the rise to dominance of company law in the nineteenth and early twentieth centuries the inevitable consequence of technological advance? During this period of history, Britain experienced what came to be known as the 'second industrial revolution' - a period of major industrialization with changes to British industry as a whole, and further to this, a change in the idea of the 'company' or firm. Hand in hand with this were technological advances, which it has been said spurred on this major change to life in Britain. Industry was expanding not least because of the growing importance of other industries such as the motor trade, metals and electrical engineering, but whilst this was a major cause of the growth in industry, was it in fact the reason for the triumph of company law in the early twentieth century? In this essay I intend to explore technological advance in this period, how much of an effect it had on company law as such, and to look further at other features of this age which could have affected the rise of company law. By 1914, company law had overtaken the Joint Stock Company and the law of partnership as the most dominant form of industrial organization in Britain. As mentioned previously, this is often attributed to the increase in technological advances and the changes this made to industrial Britain. ...read more.

Middle

The 1844 act sought to eliminate the problems of fraud and exploitation that awaited unincorporated companies because of their association with the law of partnership. It required all joint stock companies to incorporate and had a system of registration and publicity. It was made abundantly clear that this act was not for the use of private companies - only for firms with transferable shares and associations of 25 or more people. The Limited Liability Bill in 1855 did little more to change this - in fact at this time incorporation with limited liability was confined to joint stock companies only because it was restricted, like the 1844 act, to associations of 25 or more people10. However, within one year a change came about which, despite the original views of the legislators, made a significant contribution to the rise of company law and private companies. The 1856 Joint Stock Companies Act extended the sphere of the company legal form with an important change - only associations of 7 people were now needed to incorporate. The legislators did not intend to open up incorporation to private companies - this is obvious not least, by the title of the act - The Joint Stock Companies Act. However, with the number of persons required set at only seven, a private company, by selling shares to family, friends or in fact even servants as was common at the time, could easily now become incorporated. ...read more.

Conclusion

far overtaken joint stock companies, thus meaning the law of company had in essence scored a triumph over the law of partnership. This issue of technological advance it seems has not been the most influential or important cause of the rise of company law, and neither, in my opinion, was the dominance of company law an 'inevitable consequence' of technological advance. The merger boom, the rise of the joint stock company, The Great Depression, private companies, the legislation of the mid 1800's and finally the Salomon case were all partially responsible for the rise of company law, and the company legal form. In fact, one can trace these events chronologically and see a pattern arising through the period of development of ideas, companies and the law. All of these factors are interrelated, the joint stock companies with the private companies, the depression with the mergers and it is important to notice that technological advance stands at one end, and company law at the other. Although not the only, nor the inevitable consequence, technological advance can perhaps be seen as the catalyst - without it there may have been no over-production, mergers and depression, but that said without out the other intervening factors there would have perhaps have been no company law. 'By the end of this period, nearly half the occupied population was in industry' 16, and this is an important indication of how influential technology and development had become with regards to it preparatory role in company law. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Functional Areas Report

    Pirated software should not be used as this is also a cause of viruses. External communication Tesco know that E-mail is a swift and cheap way of contacting colleagues and customers, and can be used to conduct market research. Other ways include questions on company websites that encourage visitors to the site to respond.

  2. Functional Areas

    people checking the companies' burgers on quality Quality Assurance The maintenance of quality in every process and system within McDonalds It is important to appreciate that quality is not only desirable in the finished product it should be applicable in every process and system within the business.

  1. Business Studies

    reports are to be prepared, such as the lengths of the financial year - Some businesses may use shorter accounting periods to obscure transactions that will affects the business's profitability. - They also monitor transactions and the recording of the transaction, meaning that if either goods are sold or sales

  2. company law problem

    Having identified the structures we must now compare them in view of what Archie, Bob and Catherine would like. Firstly they would like to be able to share profits equally. Under section 24(1) PA 189021, 'all partners are entitled to share equally in the profits of the partnership'22.

  1. Describe the Limited Liability Partnership and explain the emergence of this new legal form ...

    Insolvency Act 1986 which will apply if an LLP does become insolvent. An LLP will be treated legally as a partnership when it comes to taxation. This was to ensure that the decision to incorporate as an LLP wasn't influenced by tax.

  2. Importance of Human Resources Management

    The labour turn over of the Ford Motor Company over the last 1 year is 7.7% This means over the past 1 year only 7.7% employees have left the reason could be due to dismissals, retirement, or sickness. In Ford the labour turnover is not much but it is still

  1. Public and Private Sectors

    I think they concentrate more on the financial and director side of stakeholders because customers rarely go online to do their shopping unlike Tesco's. We were told to locate the websites of 3 UK councils. I decided to work on the London Borough of Sutton, the Royal Borough of Kingston upon Thames and the Manchester City Council.

  2. Analysis of the Major Sectors of Employment in Gloucestershire.

    Nearly 19000 people were employed in tourism during 2008. This represents about 8% of the working population. Agriculture- Around 4500 people are employed in this sector in Gloucestershire, there has been a decline in this sector by about 5% since 2009 due to seasonal workers and casual labour market used by famers to pick their crops.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work