ADMISSION OF PARTNER
Section 31 of the Partnership Act deals with the statutory provision regarding admission of a new partner. These provisions are summarised below:
(a) A new partner cannot be admitted without the consent of all the partners unless otherwise agreed upon.
(b) A new partner admitted to an existing firm, is not liable to any debts of the firm incurred, before he conies in as a partner. The new partner cannot be held responsible for the acts of the old partners unless it is proved that
(i) the reconstituted firm has assumed the liability to pay the debt; and
(ii) that the creditor concerned has agreed to accept the reconstituted finn as his debtor and to discharge the old firm from liability.
However, a minor adMitted to the benefits of partnership, who, if he elects to become partner in the firm after attaining majority, shall become personally liable for all the acts of the finn done since he was admitted to the benefits of partnership.
A newly admitted partner shall be liable only for the debts incurred or transactions entered into by the fimi subsequent to his becoming a partner.