Joint Hindu Family Business | Dayabhaga System | Mitakshara System.

Joint Hindu Family Business or  Hindu Undivided Family Business | Meaning | Characteristics |Dayabhaga system|Mitakshara System.

Joint Hindu Family Business : Meaning

The joint Hindu Family Business is a special form of partnership in vogue in India. It is, in fact, an enlarged form of the Sole Trading Concern.

When a Hindu joint family takes to business and it comes from one generation to another generation is called a joint Hindu Family Business.

According to Hindu Law, the business of a Hindu, is inherited by his male heirs in the same manner as his property passes to his heirs. The inheritors of a joint family business are called Co-parceners,

The business is controlled by the head of the family who is the eldest member and is called "Karta".

There are two system which govern membership in the Joint Hindu family business.

(a) Dayabhaga (b) Mitakshara

• Dayabhaga System prevails in West Bengal and allows both the male and female members of the family to be Co-parceners. 

• Mitakshara System prevails all over India except W. Bengal and allows only the male members to be Co-parceners in the business.

Joint Hindu family Business : Examples

There are several joint Hindu Family Business examples in India, which include Reliance Industries Limited , Mahindra and Mahindra Limited and Haldiram Group.

Haldiram Group Family  tree.

Joint Hindu family Business : Characteristic 

1. Governed by Hindu Law- The establishment and the conduction business is according to 'Hindu Succession Act, 1956' in which the rights liabilities of head or karta is specifically given.

2. Family Business- All the members of the family whether major minor, run their family business. 

3. Membership- A person acquires membership by virtue of his birth Joint Hindu Family Business and three Successive Generation can be member in the business.

3. Liability- The liability of the 'Karta' is unlimited and that of the Co parceners is limited to their interest in the business.

4. Management- The right of management rests with the Karta. He ha Complete Control over the financial aspects of the business and property. 

5. Sharing of profit or Loss- The ratio of sharing profit and loss is not mentioned in the Hindu Act. It changes according to the birth and death of male members in the family.

6. Legal Status- The registration of Joint Hindu Family business is not compulsory. And therefore, the joint family business does not enjoy a separate legal status.