The difficulties for individuals to be discharged from debt in bankruptcy proceedings and the awfulness of debtors prison made the introduction of modern companies legislation, and general availability of limited liability, all the more urgent. The first step was the Joint Stock Companies Act 1844, which allowed companies to be created through registration rather than a Royal Charter. It was accompanied by the Joint Stock Companies Winding-Up Act 1844, which envisaged a separate procedure to bring a company to an end and liquidate the assets. Companies had legal personality separate from its incorporators, but only with the Limited Liability Act 1855 would a company's investors be generally protected from extra debts upon a company's insolvency. The 1855 Act limited investors' liability to the amount they had invested, so if someone bought shares in a company that ran up massive debts in insolvency, the shareholder could not be asked for more than he had already paid in. Thus, the risk of debtors' prison was reduced. Soon after, reforms were made for all indebted people. The Bankruptcy Act 1861 was passed allowing all people, not just traders, to file for bankruptcy. The Debtors Act 1869 finally abolished imprisonment for debt altogether. So the legislative scheme of this period came to roughly resemble the modern law. While the general principle remained pari passu among the insolvent company's creditors, the claims of liquidators expenses and wages of workers were given statutory priority over other unsecured creditors.[9] However, any creditor who had contracted for a security interest would be first in the priority queue. Completion of insolvency protection followed UK company law's leading case, Salomon v A Salomon & Co Ltd.[10] Here a Whitechapel bootmaker had incorporated his business, but because of economic struggles, he had been forced into insolvency. The Companies Act 1862 required a minimum of seven shareholders, so he had registered his wife and children as nominal shareholders, even though they played little or no part in the business. The liquidator of Mr Salomon's company sued him to personally pay the outstanding debts of his company, arguing that he should lose the protection of limited liability given that the other shareholders were not genuine investors. Salomon's creditors were particularly aggrieved because Salomon himself had taken a floating charge, over all the company's present and future assets, and so his claims for debt against the company had ranked in priority to theirs. The House of Lords held that, even though the company was a one man venture in substance, anybody who duly registered would have the protection of the Companies Acts in the event of insolvency. Salomon's case effectively completed the process 19th century reforms because any person, even the smallest business, could have protection from destitution following business insolvency.
The financial collapse of 2007–2008 led to a bank run on Northern Rock, the first since Overend, Gurney & Co in 1866. Northern Rock, Lloyds TSB and RBS were nationalised for £650bn. After this, the Banking Act 2009 created a specific insolvency regime for banks, but with reduced lending, and economic activity a large numbers of businesses failed.
Selasa, 17 Desember 2013
K company law's leading case, Salomon v A Salomon & Co Ltd.[10] Here a Whitechapel bootmaker had incorporated his business, but because of economic struggles, he had been forced into insolv
Posted by dfghy | 01.47 |
Langganan:
Posting Komentar (Atom)
BESTSELLER
-
Beverly Hills Hokku Designs Swing Coffee Table with Swivel Top Swing CT Color: High Gloss Black Hokku Designs Swing Coffee Table with Swivel...
-
Hotpoint RVM1535DMBB Microwave Oven - 1.50 ft Turntable Continually rotates food to ensure even cooking Convenience cooking controls ...
-
Whiteline Imports Mellow Motion Coffee Table Square CT1082S Finish: High Gloss Black and White Whiteline Imports This modern coffee table ma...
-
Acacia Home and Garden Bloomington Coffee Table Set 03EB-22_E Acacia Home and Garden Features: -Set includes coffee table and end table. -B...
-
Maritz Round Oval Outdoor Coffee Table - Black, 54" - Frontgate, Patio Furniture Mosaic tabletops feature up to 3,500 tiles of opaque s...
-
Pastel Hoquiam Office Chair - Chrome & Aluminum - Pu Black The Hoquiam armless office chair is handsomely and comfortably upholstered in...
-
French Country Coffee Table by Convenience Concepts, Inc. Classic lines and an attractive two-tone finish make the French Country furniture ...
-
Reese Bi-cast Leather Coffee Table Ottoman - 47.5" x 30.5" x 16.5" Additional Information: Depth Code: 30.5 Finish Code: B...
-
ShinerInternational Muir Coffee Table 77657REZ Finish: Pine, Frame Finish: Carbon Steel Blackened ShinerInternational Features: -Material: P...
-
Telescope Casual Stone-Tech Rectangle Coffee Table Textured Black Luna Pearl Shop for Tables from The Telescope Casual Stone-Tech Rectangle ...
Recent Posts
Categories
About Me
Diberdayakan oleh Blogger.
0 komentar:
Posting Komentar