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Wider share ownership?: investors in English and Welsh Bank shares in the nineteenth century1

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  • JOHN D. TURNER

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.

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  • John D. Turner, 2009. "Wider share ownership?: investors in English and Welsh Bank shares in the nineteenth century1," Economic History Review, Economic History Society, vol. 62(s1), pages 167-192, August.
    • Handle: RePEc:bla:ehsrev:v:62:y:2009:i:s1:p:167-192
    DOI: 10.1111/j.1468-0289.2009.00477.x
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    References listed on IDEAS

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    1. Ilgmann, Cordelius, 2011. "The advent of corporate limited liability in Prussia 1843," CAWM Discussion Papers 46, University of Münster, Münster Center for Economic Policy (MEP).
    2. Acheson, Graeme G. & Campbell, Gareth & Turner, John D., 2015. "Who financed the expansion of the equity market? Shareholder clienteles in Victorian Britain," QUCEH Working Paper Series 15-07, Queen's University Belfast, Queen's University Centre for Economic History.
    3. van Lieshout, Carry & Smith, Harry & Montebruno, Piero & Bennett, Robert, 2019. "Female entrepreneurship: business, marriage and motherhood in England and Wales, 1851–1911," MPRA Paper 101452, University Library of Munich, Germany.
    4. Colvin, Christopher L., 2015. "The past, present and future of banking history," QUCEH Working Paper Series 15-05, Queen's University Belfast, Queen's University Centre for Economic History.
    5. Grant Fleming & Frank Liu & David Merrett & Simon Ville, 2022. "Share ownership and the introduction of no liability legislation in nineteenth-century Australia," CEH Discussion Papers 11, Centre for Economic History, Research School of Economics, Australian National University.
    6. Grant Fleming & Zhangxin (Frank) Liu & David Merrett & Simon Ville, 2023. "Gender(ed) equity: The growth of female shareholding in Australia, 1857-1937," CEH Discussion Papers 05, Centre for Economic History, Research School of Economics, Australian National University.
    7. Acheson, Graeme G. & Coyle, Christopher & Jordan, David P. & Turner, John D., 2018. "Share trading activity and the rise of the rentier in the UK before 1920," QUCEH Working Paper Series 2018-04, Queen's University Belfast, Queen's University Centre for Economic History.
    8. Janette Rutterford & David R. Green & Josephine Maltby & Alastair Owens, 2011. "Who comprised the nation of shareholders? Gender and investment in Great Britain, c. 1870–1935," Economic History Review, Economic History Society, vol. 64(1), pages 157-187, February.
    9. Campbell, Gareth & Rogers, Meeghan & Turner, John D., 2016. "The rise and decline of the UK's provincial stock markets, 1869-1929," QUCEH Working Paper Series 2016-03, Queen's University Belfast, Queen's University Centre for Economic History.
    10. Grant Fleming & Zhangxin (Frank) Liu & David Merrett & Simon Ville, 2024. "Shining a Light: Female Investors in the Australian Gas Light Company, 1836-1940," CEH Discussion Papers 05, Centre for Economic History, Research School of Economics, Australian National University.

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