Question

Failure by a minor to give public notice within $6$ months will have the following effect ___________.

• A. The partnership firm stands dissolved
• B. Minor automatically becomes partner
• C. Minor automatically ceases to be a partner
• D. The partnership becomes an illegal association

Answer 1

Answer: (B)

Minor automatically becomes partner

According to the Partnership Act, 1932 a minor can be admitted as a partner in a partnership firm with the consent of all the partners in the agreement where the minor will share only the profits or gains of the firm and he will have no share in the firms loss.

A minor has to give a public notice whether he wants to be admitted in the partnership firm or not within the six months on his attaining maturity or obtaining knowledge of his admission as a partner. If a minor does not give the public notice then they automatically become the partner of the firm.