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Which of the following is not a true statement regarding minor's admission to partnership in a firm?
Answer & Solution
Correct Answer:
Option
A
Option A: A minor may be admitted to the benefits of partnership with the consent of majority of partners
Explanation in HTML format:
According to the Indian Partnership Act, 1932, a minor cannot become a full partner in a firm, but can be admitted to the benefits of partnership.
Section 30 of the Act states that a minor may be admitted to the benefits of partnership only with the consent of all the partners, not just the majority.
Hence, Option A is incorrect because it wrongly states that majority consent is sufficient.
Option B is correct because unanimous consent is required.
Option C is correct because a minor is not personally liable for the debts of the firm.
Option D is also correct as the minor is entitled to receive only the share of profits as agreed upon.
Therefore, the correct answer is Option A.
Section 30 of the Act states that a minor may be admitted to the benefits of partnership only with the consent of all the partners, not just the majority.
Hence, Option A is incorrect because it wrongly states that majority consent is sufficient.
Option B is correct because unanimous consent is required.
Option C is correct because a minor is not personally liable for the debts of the firm.
Option D is also correct as the minor is entitled to receive only the share of profits as agreed upon.
Therefore, the correct answer is Option A.
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