The correct answer is: B. Can transfer his interest to an outsider with consent of majority of partners.
A partner in a partnership can transfer his interest to an outsider with the consent of the majority of the other partners. This is because, under the Partnership Act, 1932, a partner’s interest in a partnership is personal property and can be transferred by the partner. However, the transfer of a partner’s interest does not automatically entitle the transferee to become a partner in the partnership. The other partners have the right to veto the transfer of the interest, and they can do so by a majority vote.
If the other partners do not consent to the transfer of the interest, the transferee will not become a partner in the partnership. However, the transferee will still have a right to receive the share of the profits and losses of the partnership that was previously assigned to the transferring partner.
The transfer of a partner’s interest can be a complex legal matter, and it is important to consult with an attorney before transferring any interest in a partnership.
Here is a brief explanation of each option:
- Option A: Cannot transfer his interest to an outsider. This is incorrect because, under the Partnership Act, 1932, a partner’s interest in a partnership is personal property and can be transferred by the partner.
- Option B: Can transfer his interest to an outsider with consent of majority of partners. This is the correct answer because, under the Partnership Act, 1932, a partner’s interest in a partnership can be transferred by the partner with the consent of the majority of the other partners.
- Option C: Can transfer his interest to an outsider without consent of other partners. This is incorrect because, under the Partnership Act, 1932, a partner’s interest in a partnership cannot be transferred without the consent of the majority of the other partners.
- Option D: Can transfer his interest to an outsider with the consent of all partners. This is incorrect because, under the Partnership Act, 1932, a partner’s interest in a partnership can be transferred by the partner with the consent of the majority of the other partners. The consent of all partners is not required.