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commerce
sole proprietorship
hindu undivided family business
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Hindu Undivided Family Business
refers to a
business owned
and
managed
by
members
of a
joint hindu family.
all
male
members having a
share
in
family property
are called
coparceners.
the
oldest male member
is the
karta.
membership
a person becomes a member of the
family business
by
virtue
of
birth.
no formal agreement
is necessary.
only
male
members can be
coparceners.
management
management of the business is
rested
in the
karta.
the
karta
may
associate
other
members
to
assist
him in the
management
of the
family business.
liability
the
liability
of the
karta
is
unlimited.
the
liability
of other
members
is
limited
to their
share
in
property
of the
family business.
right to accounts
coparceners
are not
entitled
to inspect the accounts of the business.
a coparcener who is leaving the family business can demand the accounts from the karta.
dissolution
the
business
is not
dissolved
on the
death
of the
coparcener.
it ends when all
members
notify that they are not
members
of the
business.
