The Corporations Rise to Dominance – Meg Pearce (20951578)
This article explores the key changes in corporations from the 16th century to today. The separation of ownership and management as an initial result of corporations provided abundant opportunities for corruption. 1710 saw the collapse of the South Sea Company, as a result of an exclusive trade with South America that promised profits, but as stocks plummeted, proved the company was worthless, which is why in 1776 in England; corporation was banned for 50 years. The directors of SSC were either fined or faced jail time. The bubble act was formed in 1720, which stated it was a criminal offense to create a company presuming to be a corporate body. Primarily due to the ability to combine capital, corporations were only gaining more power compared to the government. Steam power (1712), fuelled the Industrial Revolution, which increased the industry significantly. Therefore corporations grew 10 times, from 1781-1790. As a result 1825, saw a repeal of the bubble act; which was just the beginning. 19th century railroads in USA were thought to be creators of the modern corporate era. The industry grew significantly and so did the number of corporations, as a result of high capital demands. This assisted in the development of a national market for company securities- no matter how much middle class invested in a company (purchase of stocks), they were personally liable without limit for company’s debts. Mid 19th century saw a law being passed, which allowed middle and working class to invest in companies, which had many pros and cons. 1890s saw many transformations such as repealing the rule that corporations were to only exist for a short time in a particular location. Changes caused increases in incorporations, and many