Wider Share Ownership?: Investors in English and Welsh Bank Shares in the Nineteenth Century

26 Pages Posted: 9 Jul 2009

See all articles by John D. Turner

John D. Turner

Queen's University Belfast; Queen's University Belfast - Queen's Management School

Abstract

The joint-stock banks that established after the liberalizing legislation of 1826 were periodically criticized during the nineteenth century for their low-quality and rapidly deteriorating shareholder constituencies. The quality of a bank's shareholding constituency was of paramount importance because of unlimited shareholder liability. Using archival records, this article examines the quality of bank shareholder constituencies over the nineteenth century. The main finding is that shareholder constituencies did not deteriorate in quality until the introduction of limited liability. The non-deterioration of constituencies is attributed to bank deeds which locked in the aggregate quality of shareholder constituencies by empowering directors to vet all share transfers.

Suggested Citation

Turner, John D., Wider Share Ownership?: Investors in English and Welsh Bank Shares in the Nineteenth Century. The Economic History Review, Vol. 62, No. S1, pp. 167-192, August 2009, Available at SSRN: https://ssrn.com/abstract=1432195 or http://dx.doi.org/10.1111/j.1468-0289.2009.00477.x

John D. Turner (Contact Author)

Queen's University Belfast ( email )

David Leir Building
Belfast BT7 1NN, BT9 5AG
Ireland

Queen's University Belfast - Queen's Management School

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

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