Can a minor be admitted as a partner in a firm? Explain the status of the minor in a partnership firm.
Can a minor be admitted as a partner in a firm? Explain the status of the minor in a partnership firm.
Yes, a minor can be made a partner with the consent of another partner for the profits only.
This partner is not regarded as competent to enter into contract so he can't become the partner of the firm having unlimited liability. This partner has an agreement with the other partners that he will be the partner for profit only. This partner does not take part in the working of the firm. The minor is not personally liable for liabilities of the firm but his share in the partnership, property and profits of the firm will be liable for debts of the firms.
A minor has the following status in partnership firm:
(a) A minor has a right to such share of property and of profits of the firms as may be agreed upon by all partners.
(b) He may inspect the accounts of the firm or take note of account.
(c) The personal property of minor is not liable for the debts of the firm. But his share in the property of the profits is liable for the debts and obligation of the firm.
(d) So long as a minor remains a partner he can not file a suit against other partners for an account.
(e) In the case, a minor decides to become a partner he will personally be liable to third parties for all acts of the firm since he was admitted to benefits of the firm.
Yes, a minor can be made a partner with the consent of another partner for the profits only.
This partner is not regarded as competent to enter into contract so he can't become the partner of the firm having unlimited liability. This partner has an agreement with the other partners that he will be the partner for profit only. This partner does not take part in the working of the firm. The minor is not personally liable for liabilities of the firm but his share in the partnership, property and profits of the firm will be liable for debts of the firms.
A minor has the following status in partnership firm:
(a) A minor has a right to such share of property and of profits of the firms as may be agreed upon by all partners.
(b) He may inspect the accounts of the firm or take note of account.
(c) The personal property of minor is not liable for the debts of the firm. But his share in the property of the profits is liable for the debts and obligation of the firm.
(d) So long as a minor remains a partner he can not file a suit against other partners for an account.
(e) In the case, a minor decides to become a partner he will personally be liable to third parties for all acts of the firm since he was admitted to benefits of the firm.
