Minor admitted to benefits of Partnership

By Koushambi Sengupta

Introduction

The basis of Partnership is a mutual contract. Thus, only those who possess the capacity to contract can be partners. We know, that Contract with a minor is ab- initio. Therefore, a minor can never be a full-fledged partner in a partnership firm. Maximum, he can access the benefits of a partnership. Thus, a minor cannot be a partner in a firm.  The following points must be noted.

A. Only with the consent of all the existing partners of a partnership firm, a minor can be admitted to the benefits of Partnership. Even the consent of the majority of partners is not sufficient in this case.

B. Before a minor can be admitted, there has to be a partnership in existence. 

C. Partnership with all partners as minors is not possible. 

The benefit that can be availed by a minor are- 

A. A minor can obtain his share of property and profits of the firm to which he has agreed.

B. Even rights of inspection and taking of books of accounts of the firm are available to the minor. 

C. A minor is even liable to a third party, personally. Although such liability is only limited to his share in assets and profits of the partnership firm. If such assets of a minor, in partnership's film falls short in clearing the debts, due, to the third party, the minor's personal assets cannot be used to clear those debts. 

D. A minor cannot participate in any conduct of the business. He has no representative capacity. 

E. A minor cannot sue any partners of the firm for payment of shares in the firm's assets and profits. He can only do so after he severs his connection in all ways with the firm.

F. After attaining the age of majority or he comes to know that he had been admitted to the benefits of a partnership, the minor has to decide within a period of six months as to whether he would or would not like to become a partner of such firm. He must give his decision by public notice. If he does not give his decision, remains silent, or fails to give a notice, he will be elected as a partner in the firm.

G. If a minor becomes a partner of a firm through the above-said procedure, he shall be personally liable to the third parties for debts due and obligations of the firm. 

This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.