A partnership is really the relationship that lives between persons operating business in common in a bid to always profit. In a partnership two and twenty persons jointly own the partnership property while a company owns its assets and not its members and does not always set up to make profits. As oppose to a company who always has a written Articles of Incorporation a partnership agreement could be verbal and therefore makes is difficult to demonstrate its existence. And also, unlike a company, there are few formalities to setting up and trading as a partnership. A partnership almost always has unlimited liability, excluding Limited Liability Partnerships and companies are flexible to decide whether they want to be limited or unlimited. Besides a company is incorporated in that it has separate legal personality and partnership is unincorporated where it has no separate legal personality.
A company is governed by common law principles and the Companies Act 2004. A partnership in Jamaica is mainly governed by common law principles, Partnership Act 1890 (UK), and the Partnership (Limited) Act, 1853 for limited partnerships in Jamaica. Such Acts state that a company has an obligation to submit notices to the Companies Office such as annual accounts and annual returns and to maintain its registers where they can be seen by the public, except for the accounts of private companies and at the same time, a partnership ought to publicize the names of the partners, however, the right to view accounts is with partners and not the public
Also, a company has perpetual succession in which there no termination due to death or change of membership. And in a partnership a change of partners results in a termination of the old firm and the beginning of a new one. And in offering security the company can offer floating charge over its assets including current assets, while, a partnership cannot offer security by way of floating charge on goods except by...
Please join StudyMode to read the full document