The position of minor partner may be studied under the following two heads: 1. Position before Attaining Majority 2. Position on Attaining Majority.
1. Position before Attaining Majority:
(i) Every minor partner has a right to such share of the property and of profits of the firm as may have been agreed upon.
(ii) Every minor partner has a right to have access to and to inspect and copy any of the accounts, but not books of the partnership firm.
(iii) When a minor partner is not given his due share of profit, he has a right to file a suit for his share of the property of the partnership firm.
Liabilities:
The liability of a minor partner is confined only to the extent of his share in the profits and property of the partnership firm. Over and above this a minor partner is neither personally liable nor his private property can be snatched.
2. Position on Attaining Majority:
On attaining majority, the minor has to declare within 6 months whether he shall continue in the firm or leave it. If he fails to declare, he is deemed to have become a partner in the firm on the expiry of the said 6 months.
(a) Where he elects to become a partner:
(i) He becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of the partnership.
(ii) His share in the profits and property of the firm is the share to which he was entitled as a minor partner.
(b) Where he elects not to become a partner:
(i) His rights and liabilities continue to be those of a minor up to the date of the notice.
(ii) He is not liable for any act of the firm done after the date of the public notice.
(iii) He is entitled to sue the partners for his share of the property and profits in the firm.