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Partnership v/s Similar Organizations


Partnership v/s Similar Organizations
Partnership v/s Similar Organizations

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Partnership vs. Hindu Undivided Family (HUF) Business


Feature

Partnership

Hindu Undivided Family (HUF) Business

Emergence

Arises from a contractual agreement


(Except when HUF members enter a separate contract)

Arises from familial status, inherited business


(Members can form a partnership through a contract)




Membership

Both male and female members can join as partners


(Female members can't typically join as HUF members)

Only male members are automatically included


(Female members are typically excluded)




Admission of New Members

Requires unanimous consent of existing members

New partners can be admitted with unanimous consent

Female Membership

Females can join as full-fledged partners

Females typically excluded



 
 

Partnership vs. Co-ownership


Feature

Partnership

Co-ownership

Emergence

Arises from a contract among two or more persons

May arise from status, such as inheritance

Business Operations

Invariably carries on some business

May or may not involve business operations

Sharing of Profit and Losses

Invariably present

May or may not be present

Mutual Agency

Each partner acts as an agent for others

No co-owner acts as an agent for others

Transfer of Interest

Consent required from other partners for transfer

Can transfer interest without consent from others

Claim on Surplus Assets

Can claim a share in surplus assets

Can claim division of joint property in specie




Partnership vs. Club


Feature

Partnership

Club

Business Operations

Invariably carries out some business

Formed for promotion of beneficial or social services

Sharing of Profit and Losses

Invariably present

Invariably absent

Liability

Unlimited liability of each partner

Limited liability of members to specific contracts

Mutual Agency

Each partner acts as an agent for others

Members do not act as agents for each other

Transfer of Interest

Consent required from other partners for transfer

Members can transfer interest without consent

Claim on Surplus Assets

Can claim a share in surplus assets

Members do not claim share in club's assets




Partnership vs. Company


Feature

Partnership

Company

Legal Existence

No separate legal existence apart from partners

Separate legal entity distinct from shareholders

Mutual Agency

Each partner acts as an agent for others

No member or shareholder acts as an agent for others

Liability

Unlimited liability of each partner

Limited liability of shareholders in limited company

Transfer of Interest

Consent required from other partners for transfer

Shareholders can freely transfer shares

Dissolution

Dissolves upon death, retirement, or insolvency

Not dissolved by death or retirement of members

Minimum Members/Shareholders

Minimum of 2 partners

Private company: minimum 2 shareholders


Public company: minimum 7 shareholders




 
 



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