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The common law divided commercial associations into associations and corporations;
As incorporated companies arose without the governmental commands, they
Could be considered only as associations so, participants bore
The unlimited liability for debts of the company. It had no big
Significances for the prospering companies, but it was extremely essential in
Opposite case. A source of the second weakness was that courts did not recognise
Their lawful legal bodies, and because of it they had to use
Difficult enough legal receptions to achieve on court of observance of the
The property rights and fulfilment of contracts.
The third weakness - the heritage of the Roman right strengthened by interests of a crown and
Submission that any association of citizens potentially acted
Represents plot against the state; therefore any private
The association did not admit lawful until its existence not
Received the due sanction of the imperial authorities. Robert Nisbet formulates it
As follows: "... The doctrine of the Roman right about concession is remarkable,
According to which any group or association however it is deep it was
It is implanted in the history and traditions and irrespective of human fidelity and
Fidelities of its members, could not apply for a legal status, on the legal
Until this status and this existence did not receive existence
Recognition of the monarch "Robert Nisbet, p. 170, Twilight of Authority (New York: Oxford
University Press, 1970).
Submission about corporation, as about the legal fiction created exclusively
The political certificate of the state, always interfered with development of corporations as
Economic institutes. Sir Frederik Pollock also connected this submission
With the concession doctrine: "... On all continent the public law assumes,
What is the associations should not form without the state sanction "A First Book of Jurisprudence, 1923), 5th ed. (London: Macmillan AND
Co., pp. 115 - 116, Sir
Frederick Pollock. Only when associations in the form of the political
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