COMPANY LAW-I

STUDY MATERIAL

This study Material is prepared by

Dr. Pradip Kumar Das, Associate Professor,
Department of Law and Governance,
CUSB,
for the students
 Company Law-I, Module-I
Differences between Company & Partnership
1. Separate Legal Entity: A company is a distinct legal
person and different from its members. But,
partnership firm is not separate legal entity.

2. Property: In a company properties of the company

are not owned by the shareholders but by the
company. But, in case of Partnership, property of
the firm is the property of the individuals
comprising it.
 Company Law-I, Module-I
Differences between Company & Partnership
3. Creditors: Creditors of a company can proceed only
against the company and not against its members.
But, creditors of a partnership firm are creditors of
individual partners and they can file suit either
against the firm or against any partner or against all
partners.
4. Perpetual Succession: A company has perpetual
succession. But, a partnership firm does not have
any perpetual succession.
 Company Law-I, Module-I
Differences between Company & Partnership
5. Numbers of Members:
In case of Private Company: Minimum number of
members= 02 & Maximum Numbers of Members=
200
In case of Public Company: Minimum number of
members= 07 & Maximum Numbers of Members=
Innumerable
But, in case of Partnership Business: Minimum
number of members= 02 & Maximum numbers of
Members= 100[ As per Section- 464 of the
Companies Act, 2013]
 Company Law-I, Module-I
Differences between Company & Partnership
6. Liability: In a company, liability of shareholders may
be limited by shares or guarantee. But, in case of
partnership- liability of partners are unlimited.

7.Status: Members/shareholders are not the agents of

the company whereas partners are the agent of the
firm.
 Company Law-I, Module-I
Differences between Company & Partnership

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