Editing Corporation (section)

==== Further developments ====
[[File:LordLindley cropp.jpg|thumb|right|[[Nathaniel Lindley, Baron Lindley|Lindley LJ]] was the leading expert on partnerships and company law in the ''[[Salomon v A Salomon & Co Ltd|Salomon v. Salomon & Co.]]'' case. The landmark case confirmed the [[corporate identity|distinct corporate identity]] of the company.]]
In 1892, [[Germany]] introduced the {{Lang|de|[[Gesellschaft mit beschränkter Haftung]]}} with a separate [[legal personality]] and limited liability even if all the shares of the company were held by only one person. This inspired other countries to introduce corporations of this kind.

The last significant development in the history of companies was the 1897 decision of the House of Lords in ''[[Salomon v A Salomon & Co Ltd|Salomon v. Salomon & Co.]],'' where the House of Lords confirmed the separate legal personality of the company, and that the liabilities of the company were separate and distinct from those of its owners.

In the [[United States]], forming a corporation usually required an act of legislation until the late 19th century. Many private firms, such as [[Andrew Carnegie|Carnegie]]'s steel company and [[John D. Rockefeller|Rockefeller]]'s [[Standard Oil]], avoided the corporate model for this reason (as a [[Trust law|trust]]). State governments began to adopt more permissive corporate laws from the early 19th century, although these were all restrictive in design, often with the intention of preventing corporations from gaining too much wealth and power.<ref name="Corporate Law textbook">{{Citation|last1=Smiddy|first1=Linda O.|last2=Cunningham|first2=Lawrence A.|title=Corporations and Other Business Organizations: Cases, Materials, Problems|publisher=LexisNexis|year=2010|edition=Seventh|pages=228–231, 241|isbn=978-1-4224-7659-8}}</ref>

In 1896, [[New Jersey]] was the first state to adopt an "enabling" corporate law, with the goal of attracting more business to the state.<ref>[https://books.google.com/books?id=ftzqaBv7X_sC&pg=PA159 The Law of Business Organizations] {{Webarchive|url=https://web.archive.org/web/20230105140507/https://books.google.com/books?id=ftzqaBv7X_sC&pg=PA159 |date=2023-01-05 }}, Cengage Learning</ref> In 1899, Delaware followed New Jersey's lead by enacting an enabling corporate statute. However, Delaware only emerged as the leading corporate state after the enabling provisions of the 1896 New Jersey corporate law were repealed in 1913.<ref name = "Corporate Law textbook"/>

The end of the 19th century saw the emergence of [[Holding company|holding companies]] and corporate [[Mergers and acquisitions|mergers]] creating larger corporations with dispersed shareholders. Countries began enacting [[Competition law|antitrust]] laws to prevent anti-competitive practices and corporations were granted more legal rights and protections. The 20th century witnessed a proliferation of laws allowing for the creation of corporations through registration worldwide. These laws played a significant role in driving economic booms in many countries both before and after World War I. Another major post World War I shift was toward the development of [[Conglomerate (company)|conglomerates]], in which large corporations purchased smaller corporations to expand their industrial base.

Starting in the 1980s, many countries with large state-owned corporations began moving toward [[privatization]], which involved selling publicly owned (or 'nationalized') services and enterprises to corporations. [[Deregulation]] aimed at reducing the regulation of corporate activity, often accompanied privatization as part of a laissez-faire policy.