The difference between companies of persons and companies of funds (2)
The first difference is regarding capital shares and their waiver In partnerships of persons, the shares are not required to be equal, and it will not be useful to sell them to anyone or assign them without the consent of all the partners, because the partnerships of persons are based on personal consideration. In capital companies, however, the shares must be equal based on the nominal value of the share, and you can assign them to anyone without consent. partners..
The second difference is regarding ownership In the ownership companies, it is not separated from the management, but in the ownership companies, it is separate from the management, meaning that you can own shares in the funds companies (joint stock) and there will be a board of directors specialized in managing the company..
The third difference is regarding kinship Since partnerships of persons are based on personal consideration, the partners must know each other and have a relationship of kinship, friendship, or neighbourhood, for example... etc. As for in capital companies, it is very natural that the shareholders do not know each other..
The fourth difference is to acquire the status of a merchant In partnerships of persons, the joint partner must acquire the status of a merchant, but in capital companies, the shareholders do not acquire the status of a merchant, as they are shareholders and not merchants.
Fifth difference for the dissolution of the company In partnerships of persons, the company is dissolved by the death or loss of capacity of the joint partner, unless one of the partners decides to buy the share of the outside partner or with their consent to replace him with one of the heirs, because it is based on a personal consideration. In capital companies, the company does not expire with the death or loss of capacity of one of the partners, and he has the right to sell to anyone. was his share..
The sixth difference in the distribution of profits and losses In the partnership of persons, if the contract does not stipulate shares for the distribution of profits and losses, then of course the profits and losses are distributed according to the shares of the partners in the capital, but in the capital companies, the distribution of profits and losses is always based on the amount of the shares of the partners.
The seventh difference is in issuing stocks and bonds Individual companies do not have the right to issue bonds or shares, and only joint-stock companies have the right to issue bonds and shares
