Prior to the commencement of the Limited Liability Act 1855, shareholders were generally treated similarly to partners in a common law partnership, and had unlimited liability for the debts and obligations of the companies in which they held shares. From 1855, it became possible for shareholders to benefit from limited liability as a matter of routine, provided the companies in which they held shares were registered with the Registrar of Joint Stock Companies under the 1844 Act. The aim of this act was to incentivise the creation of new joint stock companies, while giving investors, the majority of whom did not play an active role in day to day management, protection from liabilities incurred by company directors.