Can minor be a partner in the partnership form of business?
A partnership firm cannot be formed with a minor as the only other member. “Section 30 of the Indian Partnership Act, clearly lays down that a minor cannot become a partner, though, with the consent of the adult partners, he may be admitted to the benefits of partnership.
What are the position of a minor partner in a partnership firm?
1. Position before Attaining Majority: (i) Every minor partner has a right to such share of the property and of profits of the firm as may have been agreed upon. (ii) Every minor partner has a right to have access to and to inspect and copy any of the accounts, but not books of the partnership firm.
Who can become partner in partnership firm?
Individual
Every person who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject can enter into a partnership. Individual: An individual, who is competent to contract, can become a partner in the partnership firm.
Can a partnership firm have a minor partner explain Class 11?
Can a Partnership firm have a minor partner? A minor cannot become partner of a firm. He may, however, be admitted to the benefits of an existing partnership.
When can a minor become a partner?
After turning 18 the minor partner can choose to become a partner of the firm. But he may choose to not become a partner. In this case, the minor partner has to give a public notice about this decision. And the notice has to be given within 6 months of gaining a majority.
Who is called minor partner?
A person who is under the age of 18 is regarded as a minor. Generally, a minor cannot be appointed as a partner. But with the consent of all the partners, a minor may be admitted for sharing profits of the firm. Such a partner, if admitted, is called a minor partner.
How will you define a minor can a minor be a partner?
(1) A person who is a minor according to the law to which he is subject may not be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership.
Who is a minor partner?
A minor is a person who is below 18 years’ of age. Minors are generally admitted to the benefits of a partnership firm, meaning, a person who may not be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership.
Who are the minor partners?
Can a minor become an agent?
Any person may become an agent even a minor or a person of unsound mind can become an agent. Liability of agent- Generally an agent is liable to the principal, but an agent is not liable to the principal if he is a minor or is of unsound mind.
Can minor be a partner with example?
Section 30 of the Indian Partnership Act, provides that though a minor cannot be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership by an agreement executed through his guardian with the other partners.
What do you mean by minor partnership?
Solution. A minor partner is a partner who is admitted into the partnership firm for the benefit of the firm with the consent of all partners.
Can a minor be a partner in a company?
When a person fulfills all the requirements to enter into a partnership agreement to gain the profits of a firm is known as a partner. According to the Partnership Act, 1932 a minor can enjoy all the benefits as a partner by signing the partnership agreement. Now let’s discuss our article in detail.
What are the liabilities of a minor partner in a partnership?
The liability of a minor partner is confined only to the extent of his share in the profits and property of the partnership firm. Over and above this a minor partner is neither personally liable nor his private property can be snatched.
Who is a partner in a partnership agreement?
When a person fulfills all the requirements to enter into a partnership agreement to gain the profits of a firm is known as a partner. According to the Partnership Act, 1932 a minor can enjoy all the benefits as a partner by signing the partnership agreement.
What happens when a minor becomes a partner in a property?
When a minor becomes a partner: His or her rights and liabilities as a minor continue up to the date on which he or she becomes a partner but he or she also becomes personally liable to the third party. The minor’s share in the property and the profits shall be the share to which he or she was entitled to be minor.