A.D. 1776 
1850, 
Under the 
uence 
of mew 
conditions 
facilities 
were given 
for the 
formation 
of joint 
stock 
~ompanies 
316 LAISSEZ FAIRE 
introduction of improved facilities for traffic has tended to 
Jepress the landed interest relatively to the merchant and 
manufacturer. 
274. The development of the means of transport during 
the first half of the nineteenth century was accompanied 
by considerable changes in business organisation. The new 
undertakings, which were called for in order to carry on the 
trade of the country, were on such a scale that they offered 
a field for associated rather than private enterprise. This 
form of trading had been greatly discredited’, since the era 
of speculation, when the South Sea Scheme had been floated. 
In 1719 the Bubble Act was passed®, which prohibited the 
formation of companies with transferable shares, unless they 
obtained incorporation by charter from the Crown or by Act of 
Parliament. Unincorporated companies had no legal existence, 
since they could neither sue nor be sued, and they were not 
partnerships, as the shares were being constantly transferred ; 
they were an anomaly in the business world, since contracts 
could not be enforced or debtsrecovered. Even the chartered 
corporations had an unfair advantage in trade; as the 
members were only liable for the amount of their contribution, 
and no individual was personally responsible for the debts 
incurred by the corporation. When in 1825 the Bubble Act 
was repealed?, and opportunity was given for the formation 
of joint-stock companies, pains were taken to protect the 
public in their dealings with companies. Power was given to 
the Crown, when granting a charter of incorporation to a 
trading company, to render the members who composed it 
personally liable for the whole or any part of the debts of the 
rorporation. 
From this time onwards, when the complete responsibility 
of the members of corporations was secured, there has been 
e tendency to facilitate the formation of joint-stock companies 
rather than to discourage them. In 1844 arrangements 
were made by which trading companies could obtain a 
Certificate of Incorporation on simple conditions and without 
the delay and expense which were involved in appealing to 
1 Napier, in 4 Century of Law Reform, 580. 26 Geo. Lc. 18, § 18. 
+ 6 Geo. IV. cc. 91. 4 7 and 8 Viet. ¢. 110. .