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CMA Intermediate · Business Laws and Ethics · Indian Partnership Act, 1932

Tara, a minor, was admitted to the benefits of partnership in a firm with the consent of all partners. She attains majority and elects not to become a partner by giving public notice. Which statement is correct under section 30 of the Indian Partnership Act, 1932?

After electing not to become a partner, her share is not liable for firm acts done after the date of her public notice, and she may sue the partners for her share of property and profits. Personal liability for past acts applies only if she becomes a partner.

  1. AHer share remains liable for acts of the firm done after the date of her notice
  2. BShe cannot sue the partners for her share of property and profits in any circumstance
  3. CShe is personally liable for all acts of the firm done since her admission to benefits
  4. DHer share is not liable for acts of the firm done after the date of the notice, and she may sue the partners for her shareCorrect

Explanation

Under section 30(8), where the person elects not to become a partner, her rights and liabilities remain those of a minor up to the date of public notice, her share is not liable for acts of the firm done after the notice, and she is entitled to sue the partners for her share of property and profits under sub-section (4). Personal liability arises only for a person who becomes a partner under sub-section (7).

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