Under the Partnership Act, a minor who has been admitted to partnership when attains majority should adhere to the following :
The question asks to identify the incorrect statement regarding the actions of a minor, admitted to the benefits of a partnership, upon attaining majority, as per the Partnership Act.
Partnership Act Rules for Minors Turning Adults
According to Section 30 of the Indian Partnership Act, 1932:
- A minor can be admitted to the benefits of an existing partnership.
- Upon attaining majority, the minor must decide whether to become or not to become a partner.
- They must give a public notice of their decision within six months of attaining majority or the date on which they obtain knowledge of their admission to the partnership, whichever date is later.
Analysis of Options
- Option 1: Requires issuing a public notice about becoming or not becoming a partner. This aligns with the Act.
- Option 2: States the option must be exercised within 2 months. The Act specifies six months. Therefore, this statement is incorrect.
- Option 3: If the minor opts to become a partner, their rights and liabilities as a minor continue until they actually become a partner. This is correct.
- Option 4: If the minor opts not to become a partner, their rights and liabilities as a minor continue up to the date they give notice of their decision. This is correct.
Conclusion
The incorrect statement is Option 2 because the timeframe allowed for a minor to exercise their option after attaining majority is six months, not two months.
Important Questions from Indian Partnership Act, 1932
Match List I with List II
List I
List II
A.
Limited Liability Partnership
I.
It can be formed with a minimum of
two individuals or body corporate
through their nomineesB.
Particular Partnership
II.
It is formed for a specific venture or
for a particular period.C.
Partnership
III.
It is an association of two or more
Individuals.D.
Mutual Agency
IV.
A partner is both an agent and a
principal in a partnership firm.Choose the correct answer from the options given below:
Which of the following are false?
A. Partners are not bound to carry on the business of the firm to the greatest common advantage
B. Where a partner is entitled to interest on capital subscribed by him, such interest shall be payable whether or not there are profits
C. An outgoing partner has a right to claim a share in the profits of the firm till his account is finally settled
D. A partner may be expelled from the firm only with the consent of all other partners
Choose the correct answer from the options given below:
Which one of the following statements is True' in partnership?
- As per Section 206 AA in Income tax Act, 1961, if PAN (Permanent Account Number) is not provided, the rate of TDS would be __________.
- Match List - I with List - II and select the correct answer using the code given below :
List - I List - II (a) Mutual Rights and Liabilities of Partners (i) Section 34 of Partnership Act (b) Dissolution of Partnership (ii) Section 13 of Partnership Act (c) Retirement of a Partner (iii) Section 39 of Partnership Act (d) Insolvency of a Partner (iv) Section 32 of Partnership Act
Code : (a) (b) (c) (d)
