A new partner can be admitted:
A new partner can be admitted:
Solution
According to Section 31(1) of the Indian Partnership Act, 1932, a new partner can be admitted into a firm only with the consent of all the existing partners.
This requirement exists because the admission of a new partner significantly impacts the existing partnership in several ways:
• The profit-sharing ratio of existing partners gets affected
• New partner gains rights over the firm's assets
• Existing partners become liable for acts done by the new partner
• The control and management structure of the firm changes
Since these changes affect every existing partner's interests, the law mandates unanimous consent rather than majority consent or individual decision.
Note: Partners can include a specific clause in the partnership deed that allows admission with majority consent or other terms. However, in the absence of such an agreement, Section 31(1) applies and requires consent of all partners.
Options 1, 2, and 4 are incorrect because:
- Majority consent alone is insufficient (unless agreed otherwise in the deed)
- Draw of lot is not a recognized legal method for partnership decisions
- A single partner cannot unilaterally admit a new partner as it would violate the rights of other partners
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2026: 13 May Shift 1