1. In a Joint Hindu Family Business, there are two types of members – Karta and Coparceners.
2. The karta has unlimited liability and he is the only decision making authority. The coparcerns have limited liability and therefore cannot take part in the management of the firm. They can only share the profit but cannot challenge decisions taken by the Karta.
3. The liability of co-parceners is limited upto the extent of their share in the Joint Hindu Family Business.
4. The personal property of co-parceners is not used for payment of the liability of the Joint Hindu Family business.
5. Thus, the liability of Co-parcerners is limited in ‘Joint Hindu Family Business’.
