Rights And Duties of Minor Partner In Company.In a partnership, a minor partner refers to an individual who is under the age of majority and thus has not yet attained the legal age to enter into contracts. The rights and duties of a minor partner in a company depend on the laws of the country or state where the partnership is registered.
Rights And Duties of Minor Partner In Company.
In most countries, a minor partner is allowed to participate in the management of the partnership but is not liable for the partnership’s debts. However, their liability is limited to their investment in the partnership. As a result, they may be required to provide financial resources to the partnership but cannot be held liable for any debts that exceed their investment.
The rights of a minor partner in a partnership include:
- Right to participate in the management of the partnership: A minor partner has the right to participate in the management of the partnership and may be given voting rights.
- Right to receive profits: A minor partner is entitled to a share of the partnership’s profits in proportion to their investment.
- Right to inspect the books of accounts: A minor partner has the right to inspect the books of accounts of the partnership.
The duties of a minor partner in a partnership include:
- Duty to contribute capital: A minor partner is required to contribute capital to the partnership as agreed upon in the partnership agreement.
- Duty to act in good faith: A minor partner has a duty to act in good faith towards the partnership and the other partners.
- Duty to maintain confidentiality: A minor partner is required to maintain the confidentiality of the partnership’s affairs.
- Duty to comply with partnership agreement: A minor partner must comply with the partnership agreement and all applicable laws.
It is important for a minor partner to understand their rights and duties in a partnership before joining the partnership. It is also recommended to seek legal advice before entering into any partnership agreement.
THE POSITION OF MINOR IN PARTNERSHIP
A minor cannot be a partner
A minor partner is a partner who is not major (not completed 18 years) .A minor cannot enter into a contract according to Section 20 of Partnership Act. A contract with a minor is void. Since partnership is a relation resulting from contract therefore a minor cannot be a partner in a firm.
A minor can be admitted to the benefits of partnership alone:
A minor can be admitted to the benefits of a partnership with the consent of all other partners for the time being. This can be done in a firm, which already exists. He cannot be a fully fledge partner..
Rights of arriinor in a firm
A minor has right to have access inspect and copy the accounts of the firm.
The minor’s shares are liable for the acts of the firm but his personal property is not liable lor the debts of the firm.
The minor or severance can sue the partners for account.
Liability of a minor
The share of a minor in the firm is liable for the acts of the firm
