Frequent question: How many members must be there in a joint Hindu family business?

(i) Formation: For a joint Hindu family business, there should be at least two members in the family and ancestral property to be inherited by them. The business does not require any agreement as membership is by birth. It is governed by the Hindu Succession Act, 1956.

How many members must be there in a joint Hindu family?

Requirement to Form HUF

A Hindu Undivided Family must consist of atleast two members to constitute a joint family. The existence of estate or property is not an essential requirement to form a Hindu Undivided Family.

How many members are there in a joint family answer?

a family which has usually three to four members is known as a small family or a nuclear family. 5. a family which has more than 5 to 6 members is known as a large family or a joint family.

What is the minimum number of members required for a joint Hindu family business?

Minimum members should be 2 and maximum 10 for banking and 20 for others. At least two persons for division of family property with no maximum limit of members. Limited but more than that can be raised in case of sole proprietorship. The capital contribution comes from ancestral property.

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Who can be a member of joint Hindu family business?

Well, any person born into the family (boy or girl) up to the next coming three generations is a part of the HUF. These members are the co-parceners. The head of such a Joint Family Business is the eldest member of the family, the “Karta”. He is the main person responsible for the business and the finances.

What are the features of joint Hindu family?

Characteristics of a Joint Hindu Family Business:

  • Governed by Hindu Law: The business of the Joint Hindu Family is controlled and managed under the Hindu law.
  • Management: …
  • Membership by Birth: …
  • Liability: …
  • Permanent Existence: …
  • Implied Authority of Karta: …
  • Minor also a Partner: …
  • Dissolution:

What is the main cause of decline in joint Hindu family business?

Conflict or family quarrel has caused the breakdown of joint family system. Conflicts regarding family property, its income and expenditure, unequal distribution of work at home and personal clashes between women lead to the break-up of joint families.

What are the functions of joint family?

Joint family performs a number of economic functions. It guarantees food, clothing and shelter to its members. All the members of joint family works together on a cooperative basis and in that way it saves money that would have been spent on hired labour.

What is a joint family called?

A joint family (also undivided family, joint household, extended family system) is a large undivided family where more than one generation live together in a common house. A joint family is a form of family where the grand-parents, father, mother, and children live unitedly under one roof.

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What are the types of joint family?

According to Gore, joint family is of three types:

  • Filial joint family (parents and their married sons with their offspring),
  • Fraternal joint family (two married brothers and their children) and.
  • Filial and fraternal (combined) joint family.

What is Coparcenary under Hindu law?

A Hindu joint family consists of lineal descendants of a common ancestor. In other words, a male head and his descendants, including their wives and unmarried daughters. … In other words, a coparcenary has succession up to four degrees of lineal descent.

What are the merits and demerits of joint Hindu family business?

Merits of joint Hindu family Business

  • Stability. Joint Hindu Family Business is more stable than other business. …
  • Management. Joint Hindu Family Business, management and control of the business by Karta of the family. …
  • Liability. …
  • Membership. …
  • Limited Funds. …
  • Lack of Management Skill. …
  • Unlimited Liability. …
  • Limited Membership.
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