Q1. Discuss characteristics of Joint Hindu Family Business?
Ans. Characteristics are:
- 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.
- Liability: The liability of all members except Karta is limited to their share of co-parcenery property of business The Karta, has unlimited liability.
- 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.
- Continuity: The business continues till after death of Karta as next eldest member takes the position of Karta, leaving business stable.
- 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.