Difference Between Partnership And Joint Hindu Firm, new article about joint hindu firm, my study about partnership, learn topic for business study online.
Difference Between Partnership And Joint Hindu Firm
The following are the differences between the two:
1. Governance. Partnership firm is governed by the Indian Partnership Act whereas the Joint Hindu Family firm is governed by the two schools (1) Mitakahara (2) Dayabhaga, of Hindu Law.
2. Creation. The partnership firm is created by the mutual agreement between the partners, which may be written or oral. Their relationship is contractual whereas for the creation of Joint Hindu Family firm no such contract is required.
3. Legal Position. The partnership firm has a legal entity and identical to its partner in the eyes of law, whereas the Joint Hindu Family is not having any separate and distinct legal entity from its members.
4. Number of Members. In partnership firm the maximum number of members is fixed. It is ten in case of a banking business and twenty in other cases. But there is no such maximum number fixed in case of Joint Hindu Family firm. It can consist of any number of members.
Difference Between Partnership And Joint Hindu Firm – My Study
5. Admission. A new partner can be admitted to partnership only with the consent of other partners. But in case of Joint Hindu Family firm, the birth of a person in family brings him in the folds. However, one can also be admitted by adoption or by marriage to male member of the Family.
6. Position of a Minor. A minor cannot become the partner in the firm, He can, however, be admitted to the benefits of firm with the consent of other partners. But in Joint Hindu Family firm there is no such restriction and a child, as soon as he is born, becomes the member.
7. Management. Every partner can take active part in the management of partnership firm whereas in Joint Hindu Family firm the power to manage is centralized in the hands of karta.
8. Outside Position of a Member. In partnership firm each partner is the agent of the other and is having the authority to bind the firm with his dealings. But in Joint Hindu Family firm this authority is not available to any member except karta.
9. Accounts. Accounts are to be properly maintained and any partner can inspect the accounts at any time in case of partnership firm. But in Joint Hindu Family firm karta is not under any obligation to maintain accounts. No member can even ask for the accounts from karta.
Difference Between Partnership And Joint Hindu Firm – My Study
10. Liabilities. The liabilities of partners in partnership firm are unlimited. Their responsibility is joint and several. For the business liabilities, the private properties of partners are also liable in addition to their share in the business. But in Joint Hindu Family firm the liability of karta is unlimited. All the other members are having limited liability to their respective undivided shares in the joint family property. The self-acquired property of a member cannot be held liable in any case.
11. Dissolution. Partnership firm can be dissolved on the death or insanity of a partner. On the other hand, the continuity of a Joint Hindu Family firm is not affected by death or insanity of a member. Only partition can bring it to an end.
12. Registration. It is not compulsory but advisable for a partnership firm to enable it to enforce a claim against outsider. But in case of Joint Hindu Family firm it is not at all necessary.
