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Partnership Act, 1932
Partnership Act, 1932
MUHAMMAD ASADULLAH
PHD BUSINESS MANAGEMENT SCHOLAR
CA PART QUALIFIED
Liabilities of Partner and Firm
Liability of a partner for acts of a firm
In order to make a partner liable for any act of the firm, the same must have been done while he
was a partner. The liability of the partner is both joint and several, so that the creditor may
compel any one or more of the partners to discharge the whole of the debts of the firm. [Section
25]
Since a minor is not capable of entering into a contract, a contract by or with a minor is void abinitio
i.e. from the beginning. Since partnership is formed by a contract, a minor cannot enter into a
partnership agreement but with the consent of all the partners for the time being a minor may be
admitted to the benefits of partnership. [Section 30]
Position of a minor before attaining majority
Right to share property and profits of the firm as agreed by the partners
Right to have access to accounts of the firm ONLY and not to the secret books
Right not to be adjudged insolvent
Liabilities:
Personally not liable i.e. limited liability.
His share is liable for the acts of the firm.
Minor’s Admission to the Benefits of Partnership
Disabilities:
No status of a partner.
No suit against partners for profit and property except after disconnecting his relation with the firm.
Not entitled to have access to books other than accounts.
Position of a minor on attaining majority
On attaining majority the minor partner has to decide within six months whether he shall continue in
the firm or leave it. These six months run from the date:
of his attaining majority or
when he first comes to know that he had been admitted to the benefits of partnership, whichever
is later.
Within this period he should give a public notice of his choice:
to become or
not to become a partner in the firm.
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