Question

Choose the correct answers from the alternatives given.
A person may be admitted as a new partner ________.

• A. in accordance with a contract between the existing partners or with the consent of all the existing partners
• B. in accordance with a contract between the existing partners or with the consent of all the existing partners subject to the provisions of Section 30 of the Act
• C. after obtaining specific approval of the Registrar of Firms & Societies to this effect
• D. by simply taking the consent of the new partner

Answer 1

The correct option is A in accordance with a contract between the existing partners or with the consent of all the existing partners

According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon.

For the right to acquire share in the assets and profits of the partnership firm, the partner brings an agreed amount of capital either in cash or in kind.