Joint Hindu Family Business Video Lecture | CMAT Mock Test Series - CAT

all right now after having done sole
proprietorship form of an organization
the second option that a proprietor has
to himself is of starting up as a joint
in the undivided family this is the
second form of organization but for
anyone to be starting the business under
the head of joint in the one divided
family business there are two conditions
which are required to be fulfilled now
what are those two conditions number one
a minimum of two members must be there
is the family minimum of two members
must be there in the family and secondly
there has to be some kind of an
ancestral proper property there has to
be inheritance of some kind of an
ancestral property inheritance or
existence of some kind of ancestral
property only then can you be starting
your business as joint in the undivided
for Jory calvo undivided family business
it is basically it comes under the
purview of Hindu law it comes under the
purview of Hindu no Hindu such hindu
hindu succession act 1956 right it is
regulated by hindu succession act 1956
now there are two systems of inheritance
okay in joining the family business only
there are two systems of inheritance by
the name of daya Haga and with Akshara
right daya bhava and mythic sure they
have our system is basically prevalent
in west bengal where only when both male
and female right they are allowed to be
a part of the business fine and the
other system is manthara
when only male members of the family
they are allowed to be a part of the
business all right now coming to the
next coming to explain
you what exactly is joining the family
business joke buddy-buddy joint families
OTN right
who's miss saber odd we do that the end
of the one who is the eldest of all okay
he is called as the colonel
all hooking up he is the delta or the
mukhiya right he is one person who is
going to control the entire business
take all the important decisions related
to the business right rest all the
members of the family they are going to
be covered as Oh partners they are
called as Co partners and they all have
to abide by the decisions which have
been taken by the Kappa okay now when we
talk of the other than myth actua in
case of their father both male and
female they are allowed to become the co
partners in the business whereas in with
actual only male members are allowed to
become the co partners are we clear all
right now coming to the features of
joint in the family business first
formation now joint in the family
business it is formed by the provisions
of hindu succession at act 1956 right
provisions off into succession act it is
hindu succession act 1956 membership
membership is by birth right the minute
you are born in the family you become a
member of the family business right you
become entitled to the profits and
losses of the business then comes
control who controls the person
it is a path or the book of the family
who is going to take charge of the
business who is going to control the
business take all important decisions of
the business then coming to liability in
case of liability here we will say the
liability of kartha is unlimited and the
nobility of co-partners is limited
liability of Curtis is unlimited meaning
Arthur's personal assets can be involved
in paying of the business liabilities
but whereas co-partners liability is
only limited to their share in the
property just on the property Michelle
verge of an ayah payoff Kenickie
liability forgive personal assets may
utilize here then continue T if kartha
dies the next person taken the next end
of person can become the verka right and
so there so therefore the continuity of
the business is not disturbed last is
minor members even Michael can become
the member of or joining the undivided
family business because here the
membership is by birth right so as soon
as a person is born he becomes a member
of the family business now what are the
merits