The main characteristics of Joint Hindu Family Business are given below:
The business of the Joint Hindu Family is controlled and managed under the Hindu law.
All the affairs of a Joint Hindu Family are controlled and managed by one person who is known as ‘Karta’ or ‘Manager’. The Karta is the senior most male member of the family. The members of the family have full faith and confidence in Karta. Only Karta is entitled to deal with outsiders. But other members can deal with outsiders only with the permission of Karta.
The membership of the family can be acquired only by birth. As soon as a child is born in the family, that child becomes a member. Membership requires no consent or agreement.
Except the Karta, the liability of all other members is limited to their shares in the business. The amount of debt can be recovered from his personal property also.
The death, lunacy or insolvency of any member of the family does not affect the existence of the business of Joint Hindu Family. The family goes on doing its business.
In a joint family firm, only Karta has the implied authority to enter into a contract for debts and pledge the property of the firm for the ordinary purpose of the businesses of the firm.
In a Joint Hindu Family firm even a new born baby can be a co-parcener.
The Joint Hindu Family business can be dissolved only at the will of all the members of the family. Any single member has no right to get the business dissolved.