The Extent to which the Rise to Dominance of Company Law in the
Nineteenth and Early Twentieth Centuries was 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. There was ‘a relative decline of agriculture
compared with other sectors such as industry’[1], and new industries
were growing steadily throughout the nineteenth century, for example
metals, mining and chemical trades. This was largely due to advances
made in these fields, and with increased out...
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... Manufacturing Industry, page 4
[9] JS Jeans – Trusts, Pools and Corners (1894), page 3
[10] Paddy Ireland – ‘The Rise of the Limited Liability Company’, 12
International Journal of Sociology of Law (1984), page 242
[11] Paddy Ireland – ‘The Rise of the Limited Liability Company’, 12
International Journal of Sociology of Law (1984), page 243
[12] Paddy Ireland – ‘The Rise of the Limited Liability Company’, 12
International Journal of Sociology of Law (1984), page 244
[13] Paddy Ireland – ‘The Rise of the Limited Liability Company’, 12
International Journal of Sociology of Law (1984), page 244
[14] Paddy Ireland – ‘The Rise of the Limited Liability Company’, 12
International Journal of Sociology of Law (1984), page 247
[15] [1897] AC 22
[16] AE Musson – The Growth of British Industry (1978), page 241