A company that carries out its activities by obtaining combined capital, limited liability, separate personality and perpetual succession by law is called a public limited company. On the other hand, two or more persons who enter into unlimited commitments for the purpose of making a profit and who are operated by all or one on behalf of all on the basis of the agreement are called partnership enterprises. Although both companies are formed by many people, there are also many differences between them due to the characteristics and areas of activity or functional areas as follows: Here are some of the differences between a partnership and a public limited company. A company must meet several legal requirements and submit reports to the government. On the other hand, there are no legal regulations on the day-to-day work of a partnership. A company cannot change its objectives and powers without complying with legal requirements. 8. The scope of production is small in the context of a partnership. The company does not have a separate legal status that differs from its members (associates). Differences between public limited company and general partnership In a partnership, all partners can actively participate in the management of the company. But in a company, not all members actively participate in the day-to-day management. Creating a partnership company is simple and straightforward. Minimum legal formalities are associated with it.
Only an agreement is needed. Registration is also not mandatory. However, it is mandatory in the state of Maharashtra. The liability of all partners except the minor is unlimited, both jointly and severally. The minimum number of partners in a public limited company is seven and, in the case of a private company, two. In the case of a partnership, the minimum number of partners is two. Registration of the partnership is optional. (except in Maharashtra) All members of a company have the right to participate in the management; in the case of a company, however, the right to control and manage the company belongs to the board of directors, which is elected by the shareholders. 10. The risk may be taken in the case of a public limited company.
5. A public limited company must obtain the approval of the registrar and comply with the rules and regulations of the company. 11. It is difficult to increase capital in the partnership. In a public limited company, the liability of each member is usually limited to the unpaid money on the shares held or the amount of the guarantee given by him. In the company, however, the partners are jointly and severally liable without restriction. 3. In a public limited company, shares are transferable. Shares can be easily sold to another person. In the company, each partner is liable without limitation and is personally liable for all debts of the company. In a company, on the other hand, a shareholder has limited liability limited to the unpaid amount on the shares he holds or the amount guaranteed by him in order to be his contribution in the event of liquidation of the company – unless it is an unlimited company, which is an exception. In a partnership, each partner is an implicit representative of the other partners and the firm as a whole.
But no member of a society is a tacit representative of the other members or of society. 3. Within the framework of the company, the shares are not transferable. No shareholder may transfer his shares to other persons. In a partnership, one or more partners have the right to sign documents on behalf of the law firm. In one company, on the other hand, the common seal is affixed to the documents as an official signature. Two directors of the company sign the documents after the affixing of the common seal. The company is governed by a board of directors composed of elected representatives/candidates of the members.
There is a divorce between owning and running a business, but there is no such divorce in a partnership. In contrast, a public company consists of a large number of shareholders who do not know each other. A change of membership or a transfer of shares has no effect on the sustainability of the company and the death of a shareholder does not entail its dissolution. Unlike the partners of a partnership, a shareholder of a public limited company does not have an agency relationship with the company or one of its members. The minimum number of partners in a partnership is two and the maximum number is 10 in the banking sector and 20 in other companies. In a private company, the minimum number of members is 2 and the maximum number is 50. In a public limited company, the minimum number of partners is 7 and there is no maximum limit prescribed by law. The maximum number of partners in the case of a company is set at 10 for banking transactions and 20 for all other transactions, but no such limit is set for public limited companies. A public limited company is a registered voluntary association of individuals with the intention of making a profit, established by law and owned by the shareholders, but by their few representatives, i.e. Administration. Anxious investors are waiting for news from the South Sea Company, a limited company founded in London in 1711. Corporations are a form of partnership in which each member or shareholder is financially responsible for the shares of the corporation.
LIBRARY OF CONGRESS The incorporation of a corporation is quite difficult and complicated. Many legal formalities are associated with it. Registration is mandatory, expensive, complicated and time-consuming. A corporation has a separate legal entity that is independent of its members, but a partnership does not have a separate legal entity that is different from its partners. The partner and the law firm are one in the eyes of the law. Corporations and partnerships are associations of persons, but they differ in the following respects. A company is established by law, while the partnership is the result of an agreement between the partners. When establishing a partnership, no legal formalities are required and company registration is not mandatory.
A company can only be incorporated after the completion of the legal formalities and its incorporation in accordance with the law is essential. A public company is regulated and regulated by the provisions of the Indian Companies Act, 1956. 9. In a public limited company, not all shareholders are known. 6. Corporations have a long lifespan or are somewhat permanent. For the company, it does not matter whether a shareholder dies or transfers his shares to others. It is simply a change in ownership. 1. In the company, the entrepreneur and the organizer are the same person who bears the risk of profits or losses. The two are therefore not separated, but the same person. An association that carries on a business with the intention of making a profit, the ownership of which is represented by shares.
8. In the case of public limited companies, large-scale production is assumed. A corporation is similar to a corporation in that both are characterized by eternal succession, in which a member can freely transfer shares and introduce a foreigner The transfer of shares is not possible without the consent of all the partners of a partnership. In the case of limited liability companies, shares can be freely transferred. A joint-stock company differs from a public limited company in some respects. A corporation exists under a state charter, while a corporation is formed by an agreement between the members. The existence of a public limited company is based on the right of the individual to conclude contracts between them and, unlike a company, does not require the granting of powers by the State before it can organize. The minimum number of members is 2 in the limited liability company and a maximum of 50. In a public limited company, the minimum number of members is 7 and there is no maximum limit. A partnership can be dissolved at any time by any partner without legal formalities if it is done « at will ».
In the case of a company, no member can request its liquidation at will, and the liquidation involves legal formalities. Auditing a company`s accounts is a legal necessity, but in the case of a partnership doing business, this is not the case if the total annual turnover, turnover or gross income of the company does not exceed Rs 40 lakhs. In the case of a private company, the transfer of shares also requires the prior approval of the board of directors. But in the case of a public limited company, a shareholder can transfer his shares freely and without restriction and the purchaser is entitled to all membership rights. A partnership does not have a separate legal entity that is different from its component members. A corporation, on the other hand, is a separate legal entity that is different from its members. Partnerships do not have a separate legal existence. The partnership company and the partner are the same. The corporation has a separate legal existence. He is an artificial person created by law. In a company, all political decisions are taken on the basis of the majority opinion at a meeting of the board of directors or the general body of shareholders.
But in partnership, all political issues are decided by the unanimous consent of all partners. A corporation differs from a partnership in that it consists of a few people who are united by a common trust. .
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