Admission of Partner

The partnership in India is carried on by the law named “Indian Partnership Act,1932”. Further, Section 31 of chapter V of the act deals with the admission of a partner in a partnership firm.

It states,

“1) Subject to contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners.

(2) Subject to the provisions of section 30, a person who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he became a partner.”

Analysis

In a partnership, the agreement between the partners is the most important document. To admit a partner, partners should reframe the agreement along with the new partner. Such a new deed should mandatorily supersede the old deed or deeds. Such a new deed should be signed by all the partners in witness thereof.

Further, the minor can be admitted to a partnership but only for the benefits and not for the disadvantage to the minor.

Thereafter, any partner admitted to the firm shall not be responsible for the acts or deeds done before his effective date of admission.