Joint Hindu Family business is one of the oldest forms of business organization in the country. It refers to a form of organization wherein the business is owned and carried on by the members of the Hindu Undivided Family( HUF). It is governed by Hindu Law. If a person is born in the family then he/she will automatically become a member of the business. The business is controlled by the head of the family who is the eldest member and is known as Karta. The members have equal rights in the property of an ancestor irrespective of their gender (male or female). The members are known as Co-parceners. Examples: Reliance Industries Ltd., Mahindra & Mahindra Ltd. Haldiram's Pvt Ltd. Characteristics 1. Formation: For the formation of the Joint Hindu Family business there should be at least two members in the family and an ancestral property to be inherited by them. No agreement is required for the business because membership is by birth. 2. Liability: The liabilit...
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