Characteristics of Joint Hindu Family Business.

Q1. Discuss characteristics of Joint Hindu Family Business?

Ans. Characteristics are:

  1. Formation: For Joint Hindu Family Business, there should be at-least two members in family and ancestral property to be acquired by them. It is governed by Hindu Success Act, 1956.
  2. Liability: The liability of all members except Karta is limited to their share of co-parcenery property of business The Karta, has unlimited liability.
  3. Control: The control of family business lies with karta. He takes all decisions and authorized to manage business. His decision are binding on other members.
  4. Continuity: The business continues till after death of Karta as next eldest member takes the position of Karta, leaving business stable.
  5. Minor Members: The inclusion of an individual into business occurs due to birth in Hindu Undivided Family. Hence, minors can also be members of business.

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