JAIIB LRAB Unit 52 - Minor Admitted to the Benefits of Partnership

JAIIB LRAB Unit 52 - Minor Admitted to the Benefits of Partnership (Year: 2019)

The minor has a right to share the property and profits of the firm as may be agreed upon by the partners and the minor can have access to the accounts of the firm.

 

Only the minor's share is liable for the acts of the firm but the minor is not personally liable for the acts of the firm and the liabilities arising there from.

 

The minor may or may not take legal action (by filing suit) against the partners for payment of his share of the property or profits of the firm except when severing (ending) his connection with the firm.

 

At any time within six months of his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership (whichever date is later) the person may give public notice to the effect whether he has elected to become a partner or not.

 

This notice determines his position as regards the firm.

 

However, if he fails to give such notice, he shall become a partner in the firm on the expiry of the said six months.

 

Where such a person becomes a partner (either because he elected to do so or because he failed to take a decision and six months have elapsed since he attained majority):

 

(a) his rights and liabilities as a minor continue up to the date on which he becomes a partner but he also becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership, and

 

(b) his share in the property and profits of the firm shall be the share to which he was entitled as a minor.

 

If such person elects not to become a partner:

 

(a) his rights and liabilities shall continue to be those of a minor up to the date on which he given public notice that he does not want to become a partner;

 

(b) his share shall not be liable for any acts of the firm done after the date of the notice; and

 

(c) he shall be entitled to sue the partners for his share of the property and profits.

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