Emergence of the Concept of Company Law: A Case of Pakistan
MAGNT Research Report (ISSN. 1444-8939) Vol.3 (3). PP: 252-259, 2015
7 Pages Posted: 9 Jun 2017
Date Written: March 4, 2015
The co-operative trading undertakings were started as early as in the 13th century by way of a formal business through partnership and gilds until the 16th century when association known as “Company” did appear under the characters of incorporation by Tudor Monarchs who regulated the trade of merchant adventurers abroad and engaged in domestic enterprises. They like medieval gilds disciplined their members and provided them with monopoly in their transactions with the outsiders. The Levant Company, the East India Company, the Hudson’s Bay Company and South Sea Company were incorporated as legal entities distinct from their members who were not liable for the debts of the corporation. The word company has no strict legal meanings but in legal theory read with economic realities it implies: “An Association of a number of persons for some common object usually to carry on business for gain” The companies are artificial legal person invested by the law with most of the powers and responsibilities equivalent with those of natural persons. They may own property, enter into contracts, inflict or suffer wrongs, sue or be sued against and do or have done to them most other things like human beings i.e. it is capable of perpetual succession quite distinct from its members. The Corporate Law has behind it a long history of centuries when in course of that period it was revised and repealed time and again by the legislature in England. Professor Gower “Principles of Modern Company Law" (7th Edition) has classified the development of Corporate Law falling into three periods: 1. Until 1720 when the Bubble Act was passed. 2. From 1720 until the Bubble Act was repealed in 1825. 3. From 1825 until the present day.
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