This is a presentation that I had made on Joint hindu family business Hope people find it useful...

1. Better Production For a
Better Tomorrow

2. Features
Merits
Introduction
Limitations
Examples

3. INTRODUCTION

4. It is a specific form of business Organization found only in India . It
is one of the Oldest forms of Business organization in the country. It
refers a form of organization wherein the business is owned and
carried out by the members of the Hindu Undivided Family. It is
governed by the Hindu Law and it is regulated at Hindu Succession
Act 1956.
A minimum of 2 members must be in the family
Existence of ancestral property
Conditions

5. Dayabhaga system is basically prevalent
in West Bengal. When both male and
female are allowed to be a part of
business
The other part is Mitakashara,
where only the male members of
the family are allowed to run the
business.
In Joint Hindu
Family Business
itself, there are
2 systems of
inheritance
Dayabhaga
Mitakashara

6. In a family, the one who is the eldest of
all. one person who is going to control
the whole business. Takes all the
important decisions related to the
business.
Rest all the members of the
family. They all have to abide by
the decisions taken by the Karta.
In Joint Hindu
Family Business
itself, there are 2
major groups
involved
Karta
Co-parceners

7. FEATURES

8. For a joint Hindu family business there should
at least be two members in the family. It is not
at all compulsory to register this organization
because it is the result of Hindu Law. It is not
formed by any agreement like partnership firm.
Membership is by birth..
The liability of Karta is unlimited
because he is the only deciding
authority whereas the liability of co-
parceners is limited up to their share
in the capital of the family.
This organization enjoys a long and stable
life as it is not affected due to death,
insolvency, insanity of any of its member. In
other words, if Karta dies or becomes
incapable of managing the business then the
succeeding co-parceners will act as Karta.
Hence operations are not terminated and
continuity of business is not threatened.
The control of the family business
lies with the karta. He takes all the
decisions and is authorized to manage
the business. His decisions are
binding on the other members.
The inclusion of an individual into the
business occurs due to birth in a Hindu
Undivided Family. Hence minors can also
be members of the business.
Minor members
Continuity
Control
Formation
Liability

9. MERITS

10. Effective control
Continued business
existence
The death of
karta will not
affect the
business as the
next eldest
member will take
up the position.
Hence continuity
is not threatened.
Limited liability of
members
The liability of
all the co
parceners
except the karta
is limited.
Their risk is well
defined and
precise.
Increased loyalty
and cooperation
Greater sense of
loyalty towards one
another. Pride in the
growth of business
links to the
achievements of the
family. Thus helps to
secure better
cooperation from all
the members.
The karta has
absolute decision
making power.
This leads to
prompt and
flexible decision
making.

11. LIMITATIONS

12. The common problem faced by the joint Hindu
family is of limited capital , which is largely
dependent on the ancestral property and throws
limits for growth and expansion.
The Karta is not only loaded
with responsibility of the decision making and
running the business , but also distressed due to
unlimited liability . The business debts can be
repaid using his property.
The family members might sometimes oppose the
decisions of the Karta . This may create conflicts
among the family members and may even lead to
loss of control and split in the family unit.
Given that the Karta cannot be the specialist in all
areas of management , the business might suffer due
to his unwise decisions . His incapability in decision
making may lead to meager profits or sometimes even
losses for the organization .
Limited Resources
Unlimited Liability of
Karta
Dominance of Karta
Limited
Managerial Skills

13. EXAMPLES

14. Haldiram’s Food International Limited
today is recognized as a Star
Export House, by the Directorate General
of Foreign Trade ,a department working
under the Ministry of Commerce
,Government of India.
In 1997, Haldiram’s forayed
into milk and milk product
industry with products such
as khowa, Ghee& Butter
Milk, the manufacture
of Extruded foods such as
vermicelli and 3-D Snacks..
In 2014, Haldiram was ranked
55th among India's most trusted
brands. His sons, Rameshwar and
Moolchand are also the major
shareholders in the business.
Haldiram's was founded in 1937 by
Shivkisan Agrawal as a retail sweets
and namkeen shop in Bikaner,
Rajasthan. In 2008, the chairman of
the company's Nagpur branch was
Shivkishan Agarwal.
Haldiram’s Bhujiawala
became operative and
soon it became a hot
favorite of all Nagpurians.
This was followed by a
chain of retail outlets &
showrooms catering to the varied
tastes of all segments of society.

15. 1
2
3
4
Tata Sons Limited is the
bulk shareholder of the
Tata group of companies.
About 66% of the equity capital of
Tata Sons is held by philanthropic
trusts endowed by members of the
Tata family.
Tata Sons is the owner of the Tata name
and the Tata trademarks, which are
registered in India and several other
countries.
Tata Sons is the owner of the Tata name and the
Tata trademarks, which are registered in India and
several other countries.