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The Indian Partnership Act, 1932

Acc. to Indian Partnership Act 1932 (Sec. 4) : Partnership is the relation between person who have agreed to share the profits of a business carried on by all or any one of them acting for all. Three elements Agreement between two or more persons Agreement must be to share the profits of the business. The business must be carried on by all or any one of them acting for all.

Legal Position of a Minor in Partnership Acc. to Sec 30 though, a minor cannot be a partner in a firm but with the consent of all partners for the time being, he may be admitted to the benefits of partnership by an agreement executed through his guardian with other partners. Minor can be admitted to the benefits of a partnership, only with consent of all partners. The partnership must be in existence, before a minor is admitted to benefits. If the minor is made full-fledged partner in a partnership deed such deed would void and cannot be even enforced by the remaining partners

Rights of Minor: Right to share profits and the property of the firm. Right to access, inspect and copy any of the accounts of the firm. Except confidential matters like trade secrets. He can file a suit against the firm for not giving profits from shares and property. On attaining majority he may within 6 months elect to become a partner or not to become a partner. If he elects to become a partner, then he is entitled to the share to which he was entitled as a minor. If he does not, then his share is not liable for any acts of the firm after the date of the public notice served to that effect.

Liabilities of Minor: The minors share is liable for the acts of the firm, but he is not personally liabale for any such act. He must give public notice that he had been admitted to the partnership regarding that he has elect not a become partner .

If he fails to give such notice

Position on attaining Majority Within six months of his attaining majority, such minor beneficiary has to decide and give a public notice that whether he will remain in the firm as partner or leave the firm. Failing which, it will be legally presumed that, he has chosen to become a partner in the firm. (i) When he becomes a partner: According to section 30(7) of this act, if a minor, on becoming major becomes a partner his rights and liabilities are as under. He becomes personally liable, to third parties for all acts of the firm done since he was admitted ti the benefits of the firm. His share in the property and profits of the firm will remain same as he was getting as a minor beneficiary. When he leaves the firm: According to Sec.30(8) of this Act, if such minor on becoming major decides to leave the firm his liabilities and rights are as under

(ii)