However, according to the above-mentioned law, a minor is entitled to his benefits in the case of a partnership. That is, he will be entitled to all the privileges of a person without being a partner. But in such a case, all the partners of a company must be in an agreement to include these minors in the partnership and up to their benefits. The term “partnership” is described in section 4 of the Indian Partnership Act, 1932 as follows: “Partnership is the relationship between persons who have agreed to share the profits of a company operated by all or part of them acting on behalf of all.” This definition consists of an essential element that was not included in the definition in the Indian Contracts Act, namely “mutual organization”[1]. The Indian Partnership Act of 1932 defines individuals as partners who have agreed to share the profits of the business operated by all, each of whom is trading for all. [1] A minor is a person who has not yet reached the age of majority under the Indian Majority Act, 1875. [2] The Indian Majority Act stipulates that a person residing in India reaches the age of majority at the age of eighteen. [3] The Indian Partnership Act regulates the inclusion of a minor in the partnership in section 30. This section deals with the rights and obligations of a minor who is accepted into the partnership. [4] A thorough reading of the provision, in particular § 30 para. 1, makes it very clear that a minor cannot be included in the company as a full partner, but with the consent of the other partners, a minor may be included in the company in favor of the company. It is an established principle that a minor is not in a position to conclude a contract and therefore a partnership contract cannot be concluded with a minor. [5] The same was approved by the country`s highest court in Dwarkadas[6] and Hardutt Ray[7].
One conclusion that can be drawn from the previous discussion is therefore that no partnership can be founded with a minor as the only other member. A contract establishes the relationship of a partnership. Under section 11 of the Contracts Act 1872, a minor is not in a position to be a party to a contract. [15]. Even in the Dwarkadas Khetan case,[16] the honourable Supreme Court ruled out the possibility that a minor might not have the right to be a full partner in a company. In the Shah Mohandas case,[17] the Supreme Court ruled out that the admission of a minor to a company could only be for the purpose of execution. The Indian Majority Act of 1875 defines a minor as any person who has not yet reached the age of majority. According to the statue, a resident of India will reach the age of majority at the age of eighteen [2]. Article 30 of the Indian Partnership Act stipulates that a minor shall be included in the partnership.[3] After further examination of the clause, in particular § 30 para. 1, it is specified that a minor may be admitted to the services of the partnership with the consent of the other partners, but that a minor may not be a full partner in the event of a partnership.
Legally, there is no minimum age requirement for the partners of a company. Minors have the right to register companies, make management decisions and monitor all facets of business management. Limited partnerships may consist of all minors, all adults, or a combination of both. However, the rules vary from state to state as to whether parental signatures are required when the limited partnership is filed with the state. In some states, parents or guardians signed on behalf of the minor. Even with parental signatures, the minor would still be the owner and not the parents. Well, if a minor has been admitted to society for benefits, there are certain rights to which he is automatically entitled. Here are the rights of a minor as a partner: – We often enter into partnership agreements and are therefore an essential part of our daily lives. The goal of forming partnerships is to achieve big goals with the help of a group of people. The joint efforts of all members lead to the success of tasks that can be easily funded. The efficiency of the tasks of the various partners is improved thanks to the division of labour. In my personal opinion, a partnership is a better way to do business than a sole proprietorship.
According to § 8 IPA, 1932[12], it is stated that a minor who chooses not to be a full partner is responsible for all the responsibilities of the company until he has made a public announcement in accordance with article 72 of the same act. Held: In the case, the Supreme Court ruled that “the rules set out at p. 26A make it clear that a minor who is admitted to the benefit of the partnership does not have to sign the application for registration.