Q.2 Explain the position of minor in the partnership?
Ans: POSITION OF A MINOR IN A PARTNERSHIP
There is no restriction to join the minor (below 18 years of age) in the partnership by law. He is not competent to enter in the contract but he may become partner with the consent of all existing partner. Minor partner is only admitted in the profit of the business. He has no liability of loss of the business
The position of a minor is discussed under the following headings
✓ CANNOT BECOME A PARTNER
According to act 1930, a minor cannot become a partner of the firm. But with the consent of all other partners, he can be admitted.
✓ RICNT OF INSPECTION
A minor has a right of inspection. He can check the accounts of the firm. He can also keep the copy of accounts.
✓ FILE A SWF
A minor can file a suit for accounts.
✓ RIGHT OF PROPERTY & PROFIT
A minor is entitled to his agreed share of property and profit.
✓ PERSONALLY NOT LIABLE
A minor is not personally liable for the obligations of the firm.
✓ PROPERTY AND SHARE LIABLE
The minors share in profit and property may be liable for the debts of the firm.
✓ POSITION ON A TTAININC MATURITY
Within six months of his attaining maturity minor has to decide whether he wants to become full-fledged partner. He may become a partner by giving public notice.
✓ IN CASE OF BECOMING PARTNER
He will be personally liable for all the obligations of the firm. His interest in the business like share of profit and property will remain same, which has got as a minor. He can play the role of an agent for the firm. He has a right to conduct the management of business.
✓ IN CASE OF NOT BECOMING PARTNER
After attaining maturity if a minor is not ready to become a partner then his position will be as under:
He may suit the partners for his share of the property and profit. After the date of the notice, he will not be liable for all the debts and obligations of the firm. Up to the date of public notice his right and duties continue as a minor.