Question

According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of ................, unless otherwise agreed upon.

• A. Majority of the existing partners
• B. All existing partners
• C. The existing partner contributed maximum capital
• D. The existing partner with the largest share

Hint:

Section 31: unanimity is the default rule for admission of a new partner.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Under Section 31 of the Indian Partnership Act, 1932, a person can be introduced as a partner in a firm only with the consent of all the existing partners, unless the partnership deed says something different.

Step 2: Why the rule exists:
A partnership rests on mutual trust. Each partner is personally liable and acts as an agent for the others. So no one can be forced to work with a new person he has not accepted.

Step 3: Check option (1).:
Majority consent is not enough by default. It is allowed only if the deed says so. So (1) is wrong.

Step 4: Check option (2).:
All existing partners must agree. So (2) is correct.

Step 5: Check options (3) and (4).:
Neither the highest capital nor the largest share gives one partner the power to admit a new partner alone. So (3) and (4) are wrong.

Final Answer:
Consent of all existing partners is needed. Option (2). \[ \boxed{\text{All existing partners}} \]