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Business Law FAQ - Are companies superior to partnerships?

Date: March 03, 2011

Q. Are companies superior to partnerships?

A. Yes, on almost every level as they are regulated by the Corporations Law which is a comprehensive code covering the operation of the company and the responsibilities of the directors. With partnerships there is the Partnership Act or Partnership Agreement which governs the relationship but it is not an all-embracing code as with the Corporations Law.  Shareholders Agreements are a superior way in which to regulate the interests of directors.

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