Minor as a partner/ rights and liabilities of a minor partner
Definition (Article#4)
"Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all."
Who is Partner?
Persons who have entered into partnership with one another are individually called 'partners'. A partner has the legal status of a person.
What is Firm?
Persons who have entered into partnership with one another are collectively called 'firm'. As far as the legal status of a firm is concerned, it is neither a person nor a legal entity. It has no existence apart from its members. A firm carries a business under some name, it is called 'firm name'.
Minor as a partner
Minor can't be made Partner but Admitted in Profit;-
A minor may not be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership.
Rights of Minor;-
Such minor has a right to such share of the property and of the profits of the firm as may be agreed upon, and he may have access to and inspect and copy any of the accounts of the firm.
Personal Liability of Minor.-
Such minor's share is liable for the acts of the firm but the minor is not personally liable for any such act.
Minor can't Sue other Partner;-
Such minor may not sue the partners for an account or payment of his share of the property or profits of the firm.
Minor on attaining the age of majority
Notice on Attaining Majority Age or Becoming a Partner;-
At any time within six months of his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later, such person may give public notice that he has elected to become or that he has elected not to become a partner in the firm.
Rights & Liabilities when Minor turned Major elects to be Partner;-
Where such person becomes a partner;
1) His rights and liabilities as a minor continue upto the date on which he becomes a partner, but he also becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership
2) His share in the property and profits of the firm shall be the share to which he was entitled as a minor.
Rights & Liabilities when Minor turned Major elects not to be Partner;-
Where such person elects not be to become a partner;
1. His rights and liabilities shall continue to be those of a minor under the section upto the date on which he gives public notice
2. His share shall not be liable for any acts for the firm done after the date of the notice
3. He shall be entitled to sue the partners for his share of the property and profits.
