BUSINESS ORGANISATION JOINT HINDU FAMILY BUSINESS & COOPERATIVE ORGANISATION Dr LAL WILSON HEAD- RESEARCH COMMERCE & MANAGEMENT

1. JOINT HINDU FAMILY BUSINESS &
CO-OPERATIVE ORGANISATION
 Dr LAL WILSON, M.Com.,M.Phil.,PGDCA.,Ph.D.,
 HEAD- RESEARCH,
 Department of commerce,
 N.M.CHRISTIAN COLLEGE,
 Kanya kumari District, 629165.

2. INTRODUCTION
 JOINT HINDU FAMILY BUSINESS FOUND IN INDIA
 Under Hindu Succession Act 1956.
 HEAD OF THE FAMILY- KARTA
 HEAD OF THE BUSINESS- KARTA
 FAMILY MEMBERS - CO PARCENERS
 TWO SYSTEM –
 DAYABHAGA – MALE & FEMALE ARE COPARCENERS
 MITAKASHARA – ONLY MALES COPARCENERS

3. FEATURES
 1 GOVERNED BY HINDU LAW –under hindu
succession act 1956.
 2 LIABILITY-
 Head of the family – unlimited liability
 Family members – limited liability to their assets
3 MEMBERSHIP-By birth,child is also member by birth
 Female are not Co-owners
 4 MANAGEMENT – Karta manage family & business
 5 REGISTERATION – Not compulsory

4. FEATURES
6 CONTINUITY- Death of member no effect on
business
 7 ACCOUNTS- Karta maintain accounts
 8 MINOR – Minor male chid –co parcener by birth.
 9 IMPLIED AUTHORITY.- Karta has power to
borrow loan ,pledge any asset for business.

5. ADVANTAGES
 1 FORMATION.- Easy to form Hindu joint family
business.
 2 STABILITY.- Not affected byDeath,insolvency lunacy
 3 LIMITED LIABILITY- Karta unlimited,members limited
to their asstes held by them.
4 SECRECY- Karta maintain secrecy of business
 5 EFFICIENTBUSINESS-Karta runs business efficiently
 6 QUICK DECISION- Karta takes quick decision.
 7 CORDIAL RELATION- Maintain good relationship with
local people generation to generation

6. ADVANTAGES
 8 ECONOMY- More economical in nature
 9 CREDIT WORTHINESS- Better credit worthiness
among Public
 10 CAPITAL- Karta has good name among public,
raise capital easily.

7. DIS-ADVANTAGES
 1 Limited Stability
 2 Limited Capital
 3 Limited Managerial Skill
 4 No Reward for Efficiency
 5 Difference of Opinion.

8. CO-OPERATIVE ORGANISATION

11. AIMS & OBJECTIVES

13. FEATURES

15. MERITS
 1 EASY TO FORM – Local people,No legal formalities
 2 DEMOCRATIC MANAGEMENT One ManOne Vote
 3 MEMBERSHIP – Minimum 25, Max unlimited
 4 STABILITY- Continue for ever
 5 LIMITED LIABILITY- based on capital contribution
 6 TAX -- Concession given
 7 FINANCING – 25% Profit ploughing back
 8 SOCIAL BENEFITS- Community development

16. DE-MERITS
 1 RESOURCES LIMITED
 2 LACK OF SECRECY
 3 LACK OF MOTIVATION
 4 INEFFICIENT MANAGEMENT
 5 TOO MUCH GOVERNMENT INTERFERENCE

17. THANK YOU
 Dr LALWILSON
 drpvlal@gmail.com
 9097443322