Joint Hindu Family Form Of Business Organisation
After knowing about sole proprietorship and partnership forms of business organisation let us now discuss about a unique form of business organisation that prevails only in India and that too among the Hindus. The Joint Hindu Family (JHF) business is a form of business organisation run by Hindu Undivided Family (HUF), where the family members of three successive generations own the business jointly. The head of the family known as Karta manages the business. The other members are called co-parceners and all of them have equal ownership right over the properties of the business.
The membership of the JHF is acquired by virtue of birth in the same family. There is no restriction for minors to become the members of the business. As per Dayabhaga system of Hindu Law, both male and female members are the joint owners. But Mitakashara system of Hindu Law says only male members of the family can become the coparceners. While the Dayabhaga system is applicable to the state of West Bengal, Mitakshara system of Hindu Law is applicable to the rest of the country