Could You Describe Position Of A Minor In Partnership Firm.

A minor can be admitted to the benefits of a partnership with the consent of all existing partners. There must be a partner in existence before a minor can be admitted to its benefits. There cannot be partnership consisting of all minors. If a minor were made a full-fledged partner under the terms of a partnership deed the deed would be invalid.

The rights and liabilities of a minor during minority are he is entitled to receive his agreed share of the property and of the profits of the firm. He can inspect and take copies of the books of accounts of the firm. He has no right to inspect the books other than accounts as they may contain secrets, which should be restricted to real partners alone. He is not personally liable for the debts but his liability is limited to the extent of his share in the profits and property of the firm.

The personal property of the minor cannot be applied for payment of the firm debts. He is not entitled to take part in the conducting of the business. When his share is not given to him he has a right to file a suit for accounts bust he can do so only when he breaks his connection with the firm. He cannot be declared insolvent, but on insolvency of the firm his share vests with the official assignee.

Position of Minor in Partnership firm:Position of a Minor in a partnership firm can be explained in the following.Position of minor during minority:A minor cannot become a regular partner of the firm. Minor can be admitted into the partnership firm with the help of an agreement made between the partners and his guardian. He is not personally liable for the obligations of the firm. He will be the partner only in the profits of the firm. Minor can inspect the books of accounts, but he cannot take part in the management of the business.

Position of Minor after attaining age of Maturity:When a partner will become mature he will have to decide within six months, that he wants to become a regular partner in the firm or not.Position in case of becoming Regular Partner:If a minor after attaining the age of maturity wants to become partner of the firm, he will be treated as regular partner of the firm. His liabilities will be like other partners of the firm. He can take part in the management of the firm. He can act as an agent and can bind the others with his acts.

Position in case of not becoming a partner:
If a minor is not willing to become a regular partner, he will issue a notice of his intention not to become a partner to other partners. All of his obligations, rights and debts will be stopped from the date of notice. He can withdraw his share.