Joint Hindu family firm and Joint stock company
Basis of Difference
|
Joint Hindu Family Firm
|
Joint Stock Company
|
Governance
|
Governed by the Hindu laws.
|
Governed by the Companies Act 1956.
|
Number of members
|
Minimum: 2
Maximum: No limit
|
In case of a private company:
Minimum: 2
Maximum: 50
In case of a public company:
Minimum: 7
Maximum: No limit
|
Minor
|
Minors can be members.
|
Minors cannot be members.
|
Management and Control
|
Managed and controlled by the Karta.
|
Managed and controlled by the managing director.
|
Liability
|
Karta has unlimited liability; other members enjoy limited liability.
|
Shareholders have limited liability to the extent of the unpaid amount on the shares held by them.
|
Formation
|
Easy to form, as few legal formalities need to be fulfilled.
|
Comparatively difficult to form, as several legal formalities need to be fulfilled.
|
