Previous Lecture Classes of Companies Privilege of Private Company

Company Law -2 Lecture # 26

Partnership Vs. Company Partnership Act 1932 Security Exchange Commission of Pakistan Act 1997 – SECP –Companies Ordinance 1984

Partnership Vs. Company Succession –Successive Partner –Successive Member Effect of Insolvency of Individual –Partner –Member Limited Liability –Firm – Unlimited Liability –Company – Limited to one’s share

Partnership Vs. Company Ownership of Property –Firm –Company Transferability of Shares –Very Complicated – subject to Partnership Deed –Very Straightforwardly

Partnership Vs. Company Capacity to Sue –Subject to Partnership Deed –Company’s Liability Professional Arrangements –Limited Resources –Unlimited Resources

Partnership Vs. Company Financial Facilities –Limited Supply –Unlimited Resource Agency Relationship –Not likely –Possible

Partnership Vs. Company Contractual Relations –Non existence –Very much possible Commencement of Business –Immediately –After Completion of Legal formalities

Partnership Vs. Company Representation –Without any Hassle –Subject to Permission Management –Non Skilled –Professional

Partnership Vs. Company Reduction in Capital –Prime Investment –Collective Investment Number of Members –Ordinary Firm 2 to 20 –Financial Firm 2 to 10 –Private Company 2 to 50 –Limited Company 7 to Unlimited

Partnership Vs. Company Effect of Death –Firm Dissolves subject to Partnership Deed –No Effect Identification –Possible in either case

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