Joint Stock Companies Act 1856

Unlike other acts of Parliament that preceded it, the act provided a simple administrative procedure by which any group of seven people could register a limited liability company for themselves. Companies involved in banking and insurance were explicitly excluded from the provisions of the act. ==Debate==

The Joint Stock Companies Bill was introduced to Parliament by the Vice President of the Board of Trade, Robert Lowe. In doing so, he proclaimed the right of every citizen to have freedom of contract and, with it, to obtain limited liability for operating a business. Companies had until recently been prohibited, as a result of the Bubble Act and the stock market panics of the early 18th century. There was still a lot of suspicion of companies, but Lowe rejected the idea that a limited company is inherently subject to fraud and proposed the suffix "Ltd" to make businesses aware of limited liability. The third reading of the bill took place on 2 June 1856 and passed easily. == Repeal ==

The whole act was repealed by section 205 of, and the first part of the third schedule to, the Companies Act 1862 (25 & 26 Vict. c. 89). ==See also==