Corporation

A corporation is a formal business association with a publicly registered charter recognizing it as a separate legal
entity having its own privileges, and liabilities distinct from those of its members.[1] There are many different forms
of corporations, most of which are used to conduct business.

Corporations exist as a product of corporate law, and their rules balance the interests of the management who
operate the corporation, creditors, shareholders, and employees who contribute their labour.[2]

An important (but not universal) feature of a corporation is limited liability. If a corporation fails, shareholders
normally only stand to lose their investment, and employees will lose their jobs, but neither will be further liable for
debts that remain owing to the corporation's creditors.

Despite not being natural persons, corporations are recognized by the law to have rights and responsibilities like
natural persons ("people"). Corporations can exercise human rights against real individuals and the state,[3] and they
are often responsible for human rights violations.[4] Just as they are "born" into existence through its members
obtaining a certificate of incorporation, they can "die" when they are "dissolved" either by statutory operation, order
of court, or voluntary action on the part of shareholders. Insolvency may result in a form of corporate 'death', when
creditors force the liquidation and dissolution of the corporation under court order,[5] but it most often results in a
restructuring of corporate holdings. Corporations can even be convicted of criminal offenses, such as fraud and
manslaughter.[6]

Although corporate law varies in different jurisdictions, there are four core characteristics of the business
corporation:[7]

• Legal personality
• Limited liability
• Transferable shares
• Centralized management under a board structure

Partnership

A partnership is an arrangement where entities and/or individuals agree to cooperate to advance their interests. In
the most frequent instance, a partnership is formed between one or more businesses in which partners (owners) co-
labor to achieve and share profits or losses.

Partnerships are also frequent regardless of and among sectors. Non-profit organizations, for example, may partner
together to increase the likelihood of each achieving their mission. Governments may partner with other
governments to achieve their mutual goals, as may religious and political organizations. In education, accrediting
agencies increasingly evaluate schools by the level and quality of their partnerships with other schools and across
sectors. Partnerships also occur at personal levels, such as when two or more individuals agree to domicile together.
Partnerships between governments, interest-based organizations, schools, businesses, and individuals, or some
combination thereof, have always been and remain commonplace.

Partnerships have widely varying results and can present partners with special challenges. Levels of give-and-take,
areas of responsibility, lines of authority, and overarching goals of the partnership must all be negotiated. While
partnerships stand to amplify mutual interests and success, some are considered ethically problematic, or at least
debatable. When a politician, for example, partners with a corporation to advance the corporation's interest in
exchange for some benefit, a conflict of interest may make the partnership problematic from the standpoint of the
public good. Developed countries often strongly regulate certain partnerships via anti-trust laws, so as to inhibit
monopolistic practices and foster free market competition.
Definition in civil law

A partnership is a nominate contract between individuals who, in a spirit of cooperation, agree to carry on an
enterprise; contribute to it by combining property, knowledge or activities; and share its profit. Partners may have a
partnership agreement, or declaration of partnership and in some jurisdictions such agreements may be registered
and available for public inspection. In many countries, a partnership is also considered to be a legal entity, although
different legal systems reach different conclusions on this point.

Co-ownership is ownership of the same property, jointly and at the same time, by several persons each of whom is
privately vested with a share of the right of ownership.

Co-ownership is called undivided where the right of ownership is not accompanied with a physical division of the
property.

It is called divided where the right of ownership is apportioned among the co-owners in fractions, each comprising a
physically divided private portion and a share of the common portions.

"Each undivided co-owner has the rights and obligations of an exclusive owner as regards his share. Thus, each may
alienate or hypothecate his share and his creditors may seize it.

"Each undivided co-owner may make use of the undivided property provided he does not affect its destination or the
rights of the other co-owners."

Meaning of Co-Ownership
Partnership and co-ownership have different meanings. In partnership, there is an association of two or more,
persons who carry on common business for earning profit. They share its profits and losses as per oral or verbal
agreement.
Co-Ownership refers to joint ownership in a property by more than one person. If two, or more persons A 6 and C,
purchase a property collecUvely without any business motive it will be a case of co-ownership. Co-ownership thus
has joint ownership but business is not combined with it. The main points of distinction between partnership and co-
ownership as stated by Lindley are as under:-

Basis of Difference Partnership Co-Ownership

1. Contract
Partnership always arises out of contract. Co-ownership may or may not be based on agreement. It can also arise by
operation of law, such as by inheritance. On -the death of father, sans and daughters become co-owners of property.
2. Number of Partners The limit for maximum number of partners is 20 in a firm and 10 for banking.
There is no ceiling on the maximum limit of co owners.
3. Agency Relationship A partner is an agent of the other partners. He can bind them for his acts in the ordinary
course of business
A co-owner is not the agent of the other co owner/co-owners; every co-owner is responsible for his own deeds only.
4. Sharing of Profits and Losses A partnership is always entered into for business, it involve sharing of profits and
losses. A co-ownership does not involve sharing of profits and losses.
5. Transfer of Interest A partner cannot transfer his right and interest to any person without consulting his partners.
A co-owner can transfer his right and interest without the consent of the other co-owners.
6. Right of Investment If a partner spends money far the business, he can demand its repayment. If a co-owner
spends money for the improvement of the property, he has no legal claim (lien) for its refund.
7. Right of Division No partner can seek division of the partnership property in specie (in parts). His only right is to
have a share of the profits or demand the payment of his share in cash.
A co-owner has a right to demand the division of property n specie or parts.
8. Minor A minor cannot enter into a contract and as such is not able to become a regular partner of a firm. A minor
can be the co owner of a property.
9. Regulations Partnership business is regulated by the Partnership Act of 1932 as adopted in Pakistan.
There is no separate law to regulate co-ownership.
10. Dissolution Partnership can be dissolved on the insolvency, death, misconduct etc of a partner. A co-ownership
can not be dissolved on any such grounds.