The Position Of A Minor In Partnership

A Minor Cannot Be a Partner
A minor partner is a partner who is not major (not completed 18 years). A minor cannot enter into a contract according to Section 20 of Partnership Act. A contract with minor is void. Since partnership is a relation resulting from contact, therefore a minor cannot be a partner in a firm.

A Minor Can Be Admitted to The Benefits of Partnership Alone

A minor can be admitted to the benefits of a partnership with the consent of all other partners for the time being. This can be done in a firm which already exists. He cannot be a full fledged partner.

Rights of a Minor in a Firm
A minor has a right to have access and inspect and copy any of the accounts of the firm
The minors share is liable for the acts of the firm but his personal property is not liable for the debts of the firm.
The minor on severance can sue the partners for account.

Liability of a Minor
Liability of a Minor in a Firm. The share of a minor in the firm is liable for the acts of the firm. The personal property of the minor is not liable for the debts of the firm.

Position on attaining majority
Within 6 months of his attaining majority, he has to give notice:

(I) Whether he wishes to continue as a partner or not
(II) In case he does not make such announcement, he will be treated as decided to continue as a full fledged partner
(III) When he chooses to become a partner or is deemed tote partner his liability becomes unlimited with effect from the date of his admission as such.

 Article Source: http://www.informationbible.com/article-the-position-of-a-minor-in-partnership-50.html

 Article Tags: The Position of a Minor in Partnership, Minor, Partnership, Rights of a minor in a firm, Position

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