Minor As a Partner
There are multiple types of partners, out of them one type of partner is minor as a partner. In law, a person who is not adult is called Minor. Like in united state Minor age will be before the 18 years old. this may vary from country to country laws. Some countries have 15, 16, 17 etc. Because as per law minor is not matured or have not sense of facing liability, can not participant in legal matters. He have no legal authority to do any contract, poll vote etc.
As per civil law : A baby or individual who is under the time of lawful capability is called Minor
Table of Contents
Minor as a Partner
As per Indian Gov Act partnership act 1932 section 30, a minor can be added in firm for the benefit of business growth with the consent of all partners.
Rights of Minor Partner
- Minor has a full right to received the shared as per his ratio, agreed in the agreement.
- Minor has right to share the property of the business as per his ratio in to property.
- He can inspect the any books of accounts of the firms.
- He can visit the office and can sit in the meetings.
- He have right to sue to other partners for any UN-law full act.
Liabilities of Minor Partners
- Liability is up to the the invested amount in business, He is not liable personally for the clearance of debts. Here means his liability is limited up to the capital invested.
- As per Section 48 Such minor may not sue the partners for an account or payment of his share of the property or profits of the firm, save when severing his connection with the firm,and in such case the amount of his share shall be determined by a valuation made asfar as possible in accordance with the rules contained in section 48 :Provided that all the partners acting together or any partner entitled to dissolve the firm upon notice to other partners may elect in such suit to dissolve the firm, and thereupon the Court shall proceed with the suit as one for dissolution and for settling accounts between the partners and the amount of the share of the minor shall be determined along with the shares of the partners
After attaining majority of the Minor partner, he/she should declare within 6 month of it, that whether will be partner or not. He will be treated as partner of the firm from the date of declaration or up to six month after his majority. If he did not declare with or without his consent, within six month he will be general partner by law.