Characteristics Or Features Of Joint Hindu Family Business, best article on joint hindu family, students read their topic here briefly, business study article online on my study level.
Characteristics Or Features Of Joint Hindu Family Business
1. Governed by Hindu Law. The control and management of the Joint Hindu Family firm is done according to the uncodified or codified Hindu Law. The uncodified Hindu Law consists of two schools, Mitakshara and Dayabhaga. In the same way rights and duties of its members are governed by uncodified Hindu Law.
Features Of Joint Hindu Family Business
2. Membership by Birth. The membership of the family can be acquired only by birth Whosoever is born in the family becomes a member. Unlike other business organizations outsiders cannot be admitted to this by contract. By adoption, an outsider can be admitted to its membership, because adoption is considered to be replantation in the family by which a person is being adopted. Marriage with the male member also confers membership. This is by virtue of the fact that they are married to a person who is having membership by birth. These are the only two exceptions by which membership is acquired other than birth.
3. Management. The family affairs are managed by the senior most male member of the family known as “Karta’ or Manager. The powers of management are unlimited. He may manage or mismanage, it cannot be questioned by any member. He can discriminate between the members but cannot deny maintenance or use of property. But the management is more effective due to the natural love and affection with the members of the family. The members also have full faith and confidence in ‘Karta’. Only ‘Karta’ is entitled to deal with third parties. Others can transact with outsiders only with the permission of ‘Karta’.
Features Of Joint Hindu Family Business
4. Limited Liabilities of Others. All the members in a Joint Hindu Family have limited liability to the extent of property which is jointly held by the family. The self-acquired property of my member cannot be taken in order to satisfy the loans taken by the family. It is only the joint family property which is liable for satisfying debts. However, “Karta’ is also personally liable for loan taken on promissory note.
5. Continuity. As it has already been discussed in the introduction, the death in the family does not bring the joint family firm to an end. It continues forever. There is no limit to its membership number also.
6. Minor also a Member. In partnership firm minor cannot become a partner. This is an important feature of this business organisation that a person from its very birth becomes the member.
7. Accounts. As discussed earlier accounts are maintained by Karta but this is not obligatory on his part. He is not accountable to any member and no member can ask what are the profits and losses of a transaction.
Features Of Joint Hindu Family Business
8. Implied Authority of Karta. There is implied authority in favor of Karta to contract debes and pledge the credit and property of the family for ordinary purposes of family business. These are on the entire family. No other member is having such an authority.
Features Of Joint Hindu Family Business
