Write short notes on the following. Features of Joint Hindu family.

ANSWER:

Features of a joint Hindu family business:

i. Formation: The formation of a joint Hindu family business requires the existence of ancestral property. Also, at least two members are required for its formation.

ii. Control: The Karta is solely responsible for all the management decisions of the business.

iii. Continuity: The continuity of a joint Hindu family business remains unaffected by the death of the Karta as the next eldest member becomes the Karta.

iv. Unlimited liability: The Karta being the head of the joint Hindu family has unlimited liability.

v. Status of minors: A minor also has membership rights in the business; that is, membership in the business is acquired by virtue of birth.

vi. Quick decision making: Complete control by the Karta enables proper administrative functioning and quick decision making.