Question

In India Joint Hindu Family Business is a distinct form of organisation. A person can become member by his birth. What are the features of Joint Hindu Family Business? Explain any five features?

Answer 1

Features of Joint Hindu Family Business are: 

1. Governed by Hindu Law 

2. Management 

3. Membership by birth 

4. Liability 

5. Permanent existence 

6. Implied authority of Karta 

7. Minor as a co – parcener 

8. Dissolution

Explanation: 

1. Governed by Hindu law: The business of the Joint Hindu Family is controlled and managed by the hindu law. 

2. Membership by birth: The membership of the family can be acquired only by birth. As soon as a male child is bom in the family, the child becomes a member.

3. Liability: Except the Kartha, the liability of all other members is limited to their shares in the business. 

4. Minor also as a co-parcener: In a Joint Hindu Family firm even a new bom baby can be a co-parcener.

5. Dissolution: It can be dissolved only at the will of the members of the family.