THE COMPANY-MEANING AND NATURE

A partnership firm is A company is governed by the governed by the partnership Memorandum of Association deed and may be altered at and Articles of Association and any time with the consent of can be altered according to the all partners.procedure laid down in the Act. Each partner is an agent of A member of company is not the firm and of other partners an agent of the company or of and therefore, binds the firm other members and therefore, and
other partners of the does not bind the company or firm.other members by his acts. Manage mer+ vests in the M11nagement vests in the Board hands of the partners except of Directors elected by the in the case of a dormant or shareholders. 1 sleeping partner. A partner cannot tr:mster his interest in the firm without the consent of all other partners Accounts of the partnership tirm need not be audited by an auditor.A partnership firm can be wound up at any
time by any partner, if it is, 'at will' without legal formalities. In the case of a private company also the transfer of shares requires the prior permission of the


board of directors. But in the ease of a public company a shareholder can transfer his shares freely without restrictions. Accounts of a company mu:;;t be
audited by an Auditor. In the case of a company, no one member can require it to be wound up at will and winding up involves legal formalities.