called
public companies, that is to say, companies constituted by special act
of parliament for the purpose of constructing and carrying on
undertakings of public utility, such as railways, canals, harbours,
docks, waterworks, gasworks, bridges, ferries, tramways, drainage,
fisheries or hospitals. The objects of such companies nearly always
involve an interference with the rights of private persons, often
necessitate the commission of a public nuisance, and require therefore
the sanction of the legislature. For this purpose a special act has to
be obtained. A private bill to authorize the undertaking is introduced
before one or other of the Houses of Parliament, considered in
committee, and either passed or rejected like a public bill. These
parliamentary (private bill) committees are tribunals acknowledging
certain rules of policy, taking evidence from witnesses and hearing
arguments from professional advocates. In many of these special acts,
dealing as they do with a similar subject matter, similar provisions are
required, and to avoid repetition and secure uniformity the legislature
has passed certain general acts--codes of law for particular subject
matters frequently recurring--which can be incorporated by reference in
any special act with the necessary modifications. Thus the Companies
Clauses Acts 1845, 1863 and 1869 supply the general powers and
provisions which are commonly inserted in the constitution of such
public company, regulating the distribution of capital, the transfer of
shares, payment of calls, borrowing and general meetings. The Lands
Clauses Consolidation Act 1845 supplies the machinery for the compulsory
taking of land incident to most undertakings of a public character. The
Railway Clauses Consolidation Act, the Waterworks Clauses Acts 1847 and
1863, the Gasworks Clauses Act 1847, and the Electric Lighting (Clauses)
Act 1899 are other codes of law designed for incorporation in special
acts creating companies for the construction of railways or the supply
of water, gas or electric light. A distinguishing feature of these
companies is that, being sanctioned by the legislature for undertakings
of public utility, the policy of the law will not allow them to be
broken up or destroyed by creditors. It gives creditors only a
charge--by a receiver--on the earnings of the undertaking--the "fruit of
the tree."

_3. British Companies Abroad._

The status of British companies trading abroad, so far as