Question

Write short note on the following:
Features of Joint Hindu Family Business.

Answer 1

1. Formation: For a HUF there should be atleast two members in the family and ancestral property inherited by them. The membership is by birth.

2. Liability: The liability of the karta is unlimited but the liability of the co-parceners is limited to their share in the ancestral property.

3. Control: The control lies in the hands of the karta. He is the sole decision maker.

4. Continuity: It continues even after the death of the karta as after his death the eldest member of the family becomes the new karta.

5. Minor members: A person becomes the member by birth. Thus, a minor is also a member.