Limited Liability Act 1855
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| Long title | ... |
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| Citation | 1855 c 133 |
| Territorial extent | England and Wales; Scotland; Northern Ireland |
| Dates | |
| Royal assent | 1855 |
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Status: Unknown
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The Limited Liability Act 1855 (18 & 19 Vict c 133) was an Act of the Parliament of the United Kingdom that first allowed limited liability for corporations that could be established by the general public in the UK.
Under the Act, shareholders were still liable directly to creditors, for the unpaid portion of their shares. The modern principle that shareholders are liable to the corporation was introduced by the .
The 1855 Act allowed limited liability to companies of more than 25 members (shareholders). Insurance companies were excluded from the act, though it was standard practice for insurance contracts to exclude action against individual members. Limited liability for insurance companies was allowed by the Companies Act 1862.
In the House of Lords, a considerable amount of opposition existed to the idea that companies should have the advantage of limited liability. Many peers objected to what appeared to them as the government rushing through the bill as if its urgency was connected to the effort in the Crimean War. Earl Grey was one of these. He said,
Earl Granville replied to these concerns as follows.
http://hansard.millbanksystems.com/lords/1855/aug/07/limited-liability-bill#S3V0139P0_18550807_HOL_4
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