Who is a minor?
The Indian Majority Act, 1875 specifies the age of majority in India i.e 18 years. Even a person short of a day from being 18 years qualifies as a minor. In other words, the statute says that any individual, domiciled in India, who has not attained the age of 18 years is a minor.
Can a minor become a Partner in a Partnership Firm?
- NO
- In the Indian Contract Act, 1872, minors cannot be a party to an agreement. An agreement involving a minor is void-ab-initio. However, the Indian Partnership Act has its own sets of legal rules regarding minors.
- According to Section 30 of the Indian Partnership Act, 1932 With the consent of all the partners , he may be admitted to the benefits of partnership by an agreement executed through his guardian with the other partners.
Partnership with a Minor
- Consent of all the partners.
- Partnership in existence.
- There cannot be a partnership consisting of all minors.
Rights of Minors in a Partnership
Section 30 (i) – rights of a minor in a partnership
- Right of inspection
- Right to sue
- Not liable for the losses
- Right after attaining the age of majority
- Minor cannot be declared insolvent
After attaining majority within 6 months notice.If he fails to give such a notice he shall become a partner of the firm on the expiry of the said six months.
When he becomes a partner
- He becomes personally liable to third parties.
- His share and profits of the firm remains the same.
When he elects not to become a partner
- His rights and liabilities continue to the date of giving public notice.
- Not be liable for any acts done after the date of the public notice.
- He shall be entitled to sue the partners for property or profits.
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