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    Distinctions Between Partnership and Corporation

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    Miane Karyle Urolaza
    The document compares and contrasts partnerships and corporations. [1] Partnerships are formed through agreement between members, while corporations are created by operational law with legal personality granted by the SEC. [2] Partnerships have flexible terms of existence determined by partners, while corporations have a set term not exceeding 50 years. [3] Corporations, unlike partnerships, have the right of succession and limited liability for stockholders above their investment.

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    Distinctions Between Partnership and Corporation

    Uploaded by

    Miane Karyle Urolaza
    209 views2 pages
    The document compares and contrasts partnerships and corporations. [1] Partnerships are formed through agreement between members, while corporations are created by operational law with legal personality granted by the SEC. [2] Partnerships have flexible terms of existence determined by partners, while corporations have a set term not exceeding 50 years. [3] Corporations, unlike partnerships, have the right of succession and limited liability for stockholders above their investment.

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    The document compares and contrasts partnerships and corporations. [1] Partnerships are formed through agreement between members, while corporations are created by operational law with legal personality granted by the SEC. [2] Partnerships have flexible terms of existence determined by partners, while corporations have a set term not exceeding 50 years. [3] Corporations, unlike partnerships, have the right of succession and limited liability for stockholders above their investment.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    209 views2 pages

    Distinctions Between Partnership and Corporation

    Uploaded by

    Miane Karyle Urolaza
    The document compares and contrasts partnerships and corporations. [1] Partnerships are formed through agreement between members, while corporations are created by operational law with legal personality granted by the SEC. [2] Partnerships have flexible terms of existence determined by partners, while corporations have a set term not exceeding 50 years. [3] Corporations, unlike partnerships, have the right of succession and limited liability for stockholders above their investment.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Distinctions Between Partnership and Corporation

    PARTNERSHIP

    CORPORATION

    a. According to Partnership becomes established through the manner of the simple expediency of an agreement A private corporation is created by operational law Creation among the members thereof.

    Juridical personality obtained by the partnership from the moment the b. With respect agreement among the partners has been to Juridical reached and the papers for registration Personality filed with the Security and Exchange Commission (SEC)

    Private corporation acquires legal personality from the date the certification is issued by the SEC

    c. Term of Existence

    - a partnership may be stipulated in the articles of agreement by the partners.

    -shall not be in excess of fifty years, although such term may be extended prior to its expiration for a like period.

    d. Right of succession

    it cannot be said to be true of a partnership.

    - the right of succession is enjoyed by a private corporation

    e. Powers

    A partnership can engage in any field of business as the partners may decide provided it is not contrary to law, morals, or public policy.

    The operation of a private corporation is limited to what is specifically stipulated in its existence. Hence, if a private corporation is to operate in a particular line of economic activity or business other then what the law authorizes, it must first obtain an amendment to its charter from competent authority.

    f. Delectus Personae

    the principle of delectus personae prevails. It may admit new stockholders into the corporation No new members may be admitted into without the need of obtaining the prior consent or the partnership without the unanimous approval of the other stockholder. consent of all partners.

    Partnership may operate even without a designated manager. In such case, all the Private corporation is run by a board of directors. It g. Management general partners of the partnership shall be exercises its powers through the board deemed to act for the partnership.

    h.Liability to third parties

    With the exception of limited partners, the One main advantage of private corporation over members of a partnership are liable jointly partnerships is that the stockholders are not liable for over

    (as a group) and severally, meaning individually, for all the liabilities of the business.

    and above what they have subscribed fro shares of stocks.

    i. Dissolution

    It may be dissolved almost immediately, subject to the expressed will of the partners.

    If it is agreed by the stockholders to dissolve the corporation for whatever reason or reasons, such intention shall require the prior consent of the proper government authority. - general corporation may be dissolved at any time by legislative enactment, as when its charter or franchise is cancelled by the government.

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