Ans.
MINOR AS A PARTNER
Admission of a minor into the benefits of the firm:
According to Sec. 11 of the Indian Contract Act, an agreement by or with a
minor is void. As such, he is incapable of entering into a contract of
partnership. But with consent of all the partners for the time being, a minor
may be admitted to the benefits of partnership [Sec. 30(1)]. This provision is
based on the rule that a minor cannot be a promiser, but he can be a promisee
or a beneficiary. It should, however, be noted that a new partnership cannot be
formed with a partner who is a minor. Also, there cannot be partnership of
minors among themselves as they are incapable of entering into a contract.
The position of a minor partner may be studied, under two
heads:
1. Position before
attaining majority
(i) Rights:
(a) He has a right to such share of the property and of
profits of the firm as may have been agreed upon.
(b) He has also a right to have access to and inspect and
copy any of the accounts, but not books of the firm. [Sec. 30(2)]
(c) When he is not given his due share of profit, he has
a right to file a suit for his share of property of the firm. But he can do so
only, if he wants to sever his connection with the firm. [Sec. 30(4)].
(ii) Liabilities: The liability of the minor partner is
confined only to the extent of his share in the profits and property of the
firm. Over and above this, he is neither personally liable nor is his private
estate liable.
2. Position on attaining
majority
On attaining majority, the minor partner has to decide
within 6 months whether he shall continue in the firm or leave it. Within this
period he should give a public notice of his choice;
(a) to become, or (b) not to become, a partner in the
firm.
If he fails to give a public notice he is deemed to have
become a partner in the firm on the expiry of the said six months [Sec. 30(5)]
Where he elects to become a partner;
(a) He becomes personally liable to third parties for all
acts of the firm done since he was admitted to the benefits of partnership;
(b) His share in the property and profits of the firm is
the share to which he was entitled as a minor partner [Sec. 30(7)].
Where he elects not to become a partner;
(a) His rights & liabilities continue to be those of
a minor upto the date of the public notice;
(b) His share is not liable for any acts of the firm done
after the date of the public notice;
(c) He is entitled to sue the partners for his share of
the property and profits in the firm [Sec. 30(8)]
