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CA Foundation · Business Laws · The Indian Partnership Act, 1932

Sunil, Tara and Umesh are partners in a firm. Sunil's son Vivek, aged 16, is to be given the benefits of partnership with the consent of all partners. Which statement correctly describes Vivek's position under the Indian Partnership Act, 1932?

A minor cannot become a partner, but with all partners' consent he can be admitted to the benefits of the partnership. He receives a share of profits and property, while his liability is limited to that share and he has no personal liability for the firm's debts.

  1. AHe becomes a full partner with unlimited liability for the firm's debts
  2. BHe is entitled to a share of profits and property but has no personal liability for the firm's debtsCorrect
  3. CHe can inspect and copy the firm's books and take part in its management
  4. DHe cannot be given any benefit as a minor cannot be associated with a firm

Explanation

A minor cannot be a partner but, with the consent of all partners, may be admitted to the benefits of the partnership. He gets a share in profits and property, and his liability is limited to his share in the firm. Option A is wrong because he is not a full partner and carries no personal liability.

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