What is the difference between a Company limited by shares and Partnership?

The difference between the company limited by shares and Partnership is as follows: 

i). Partnership is governed by Part X of Law of Contract Act, Cap. 433 it is defined in section 190(1) of LCO to mean the relationship that subsists between persons carrying on business in common with the view of profit. The relationship of partnership arises from contract and not from status, per section 191 (1) of LCO. Example of Partnership is a firm of Legal Practitioners; while; the Company limited by shares is governed by Cap. 212. 

ii). Partnership is not legal person, but can sue or be sued on it own name while, a Company limited by shares is a legal person separate from its members; it can sue or sued in its name. 

iii). The minimum number of partners is 2 while the maximum number is 20, while; in Public Company has no maximum number of members. Maximum number of members in Private Company is 50 and minimum of 7 for the Public Corporation and 2 members for Private company.

(iv). What do you understand by Partnership?

Partnership is not formed by registration of document unless business name is used. It may be formed by express or implied agreement, oral or written or even by imputation of the law while; 

Company is formed by registration of memorandum and articles of association as well as other documents, if required. 

(v). Liability of partnership is unlimited i.e in cases of default, creditors have personal claim against them jointly and severally while; Liability of Company members is limited e.g to amount of unpaid shares in limited company, creditors have no claim against members. 

(vi). Powers in Partnership are regulated freely by agreement and are not deemed to be known by third Parties. Powers are altered freely by agreement thus; the doctrine of ultra vires is inapplicable. While; 

Power in the Company are strictly regulated by memorandum and article of association that are deemed to be known to third parties dealing with the company contracts made by company beyond its powers and objects are ultra vires

(vii). Unless, otherwise agreed, death, bankruptcy or insanity of a partner terminates partnership, while; in Company the company does not die with death, bankruptcy or insanity of its member. Shares pass to appropriate representative. 

(viii). Each partner has the right to participate in management of Partnership while; in Company Members delegate the management of the company to directors.

(ix). Partnership is not required in law to keep book of accounts while; the company must keep proper books of accounts.