Posts tagged ‘Succession’


1.Company is an artificial legal person. Partnership is not a legal person.

2.Company has perpetual succession. Partnership firm does not have perpetual succession.

3.Company is created by registration under Companies Act. For a partnership firm registration is not compulsory. It is guided by Indian Contract Act and Partnership Act.

4.Private Limited Company shall have at least 2 members and maximum 50 members. Partnership firm shall have at least 2 members and maximum 20 members and for banking business, maximum 10 members.

5.In a private limited company, liability of the members can be limited by shares or by guarantee. Liability of members is unlimited in a partnership firm.
6.A member is not an agent of company or of other members. Partner is an agent of firm and other partners.

7.Member cannot bind company by his act.  Partner can bind firm by his act. 
8.Ordinary members cannot take part in management of a company. Only director members can take part in management.  Partners can take part in   management of a firm.

9.Private limited company shall have a minimum paid up capital of   Rupees 1,00,000/-(Rupees One Lakh Only) and public limited  company of Rs. 5,00,000/- (Rupees Five Lakh Only). There is no minimum paid up capital for a partnership firm.

10.Shares of a private limited company can be transferred with ease. Partner can transfer his share but the assignee does not become a partner. He is only entitled to share of Profits.

11.A company is an entity distinct from its members. It may own property, make contracts, sue and be sued in its own name.  The property of a firm is   owned by the partners. It can also sue and be sued in the firm’s name and   partners can also be sued individually.

12.A single member cannot wind up a company.  A partnership may be dissolved by any partner at any time.

How to obtain a Succession Certificate?

A District Judge within whose Jurisdiction a deceased person resided at the time of his death or within whose Jurisdiction any part of his property was found may grant the Succession Certificate under the Indian Succession Act. Application to the District Judge shall contain the details which include the time of the death of the deceased, the place of the residence of the deceased at the time of his death, details of the relatives of the deceased, right of the applicant in moving the application, the debts and securities in respect of which the certificate is applied for etc.

After the District Judge is satisfied that there is a ground for entertaining the application, a hearing date is fixed and notices are served on concerned persons. After hearing, if the District Judge decides that the right of Succession Certificate belongs to the applicant, the Judge shall make an order for the grant of certificate to him. The Judge may also grant a certificate to an applicant with a prima-facie best title, if he finds it difficult to determine in the ordinary manner.

A succession Certificate can empower a person to receive interest or dividends, on securities and to negotiate or to transfer the securities of the deceased person.