Great Parliaments of the past – for Corporate lawyers
Published on 30th Apr 2015
As a new Parliament looms, we look at how past Prime Ministers and parties created the modern framework of company law.
| Year | Act or event | Interest | Prime Minister or Chief Minister | Governing party |
| 1600 | East India Company formed |
– The first major joint stock company in English history – Established by Royal Charter |
Sir Robert Cecil | Elizabeth I and her ministers |
| 1720 | The Bubble Act |
– Made non-charter companies illegal – Effectively giving the South Sea Company a monopoly over investors’ capital |
The Earl Stanhope | George I |
| 1844 | The Joint Stock Companies Registration and Regulation Act |
– Companies allowed to incorporate other than by Act of Parliament or Royal Charter – Registrar of Joint Stock Companies created -…but members still did not have limited liability |
Sir Robert Peel | Conservative |
| 1855 | Limited Liability Act | Members’ liability finally restricted to the amount unpaid on their shares | Viscount Palmerston | Liberal |
| 1856 | Joint Stock Companies Act |
– Codified existing legislation – Introduced the Memorandum and Articles of Association |
Viscount Palmerston | Liberal |
| 1862 | The Companies Act |
– Codified existing legislation – Allowed a liquidator to bring an action against directors in connection with offences involving the company |
Viscount Palmerston | Liberal |
| 1900 | The Companies Act | Introduced the compulsory audit of accounts | The Marquess of Salisbury (a direct descendant of Sir Robert Cecil, see above) | Conservative and Unionist |
| 1908 | Companies (Consolidation) Act 1908 | Codified the 16 company-related Acts since 1862 | Asquith | Liberal |
| 1948 | The Companies Act |
– The first “modern” Companies Act – We still occasionally come across companies with 1948 Act Articles of Association |
Attlee | Labour |
| 1980 and 1981 | The Companies Act | The first Companies Acts to implement European Community law – the Second and Fourth EC Company Law Directives, on share capital and accounts | Thatcher | Conservative |
| 1985 | The Companies Act |
– A major codification of company law – Some financial services legislation was removed from the Companies Acts and established as “stand-alone” legislation ahead of the 1986 “Big Bang”, resulting in the Financial Services Act 1986 – Insolvency legislation was also carved out into the Insolvency Act 1986 |
Thatcher | Conservative |
| 1989 | The Companies Act | Implemented the Seventh and Eighth Company Law Directives on consolidated accounts and auditors | Thatcher | Conservative |
| 2006 | The Companies Act |
– Still referred to as “the new Act” by older practitioners – Replaced all existing company law, bar some minor provisions of the 1985 and 1989 Acts – Presented as a major overhaul of companies legislation… – …but although it clarified directors’ duties, made some aspects of private company administration easier and removed the statutory prohibition on financial assistance for private companies, the Act was a missed opportunity to simplify and shorten companies legislation – …as indicated by it being the longest Act ever passed by Parliament |
Blair | Labour |
