Methodology of joint hindu family
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Answer:
Methodology of joint hindu family
Explanation:
The Joint Hindu Family Business is an affectionate business and distinct form of organization peculiar to India. The operation of law creates a joint Hindu Family Business. It does not have any separate and distinct legal entity from that of its members.
The Joint Hindu Family business is controlled under the Hindu Law instead of the Partnership Act. The membership in this form of business organization can be acquired only by birth or by marriage to a male person who is already a member of the Joint Hindu Family.
“When two or more families agree to live and work together, throw their resources and labor with joint stock and share profits and the losses together, then this family is known as composite family.”
There are two schools of Hindu Law-one is Dayabhaga, which is prevalent in Bengal and Assam, and the other is Mitakshara prevalent in the rest of the country. According to Mitakshara law, there is a son’s right by birth in the property of the joint family. It means, when a son is born in the family, he acquires an interest in the property jointly held by the family.
The business of the Joint Hindu Family is controlled and managed by one person who is called ‘Karta’ or ‘Manager.’ The Karta or manager works in consultation with other members of the family, but ultimately, he has the final say. The liability of Karta is unlimited while the responsibility of other members is limited to their shares in the business.