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Differences between the main types of business organizations in Malaysia -…
Differences between the main types of business organizations in Malaysia
Separate legal persona/entity
Company
A member of a company is not personally liable for the debts or obligations of the company
Partnership
Everyone is equally liable
Property
Company
The property belongs to the company itself and not its members
Partnership
Perpetual succession
Company
Can only be destroyed by the process of law
Partnership
Dissolved in the event of the death or bankruptcy of any partner
Number of members
Company
no limit
Partnership
maximum 20 persons
Management
Company
members cannot interfere in the management of the company
Partnership
every partner may take part in the management of the partnership business
Transfer of shares
Company
member is entitled to transfer his shares in the company to anyone he wishes
Partnership
no person may be introduced to be a partner without the consent of all existing members
Borrowing
Company
more avenues to borrow funds
Partnership
cannot create a floating charge
Registration procedure
Company
more complicated
Partnership
less publicity and lower costs
Inspection of accounts
Company
Company’s accounts must be lodged with the Registrar and are open to public inspection
Partnership