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  • HUF & Companies

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    Sandeep S Luthra
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    The document compares and contrasts two types of business organizations - the Hindu Undivided Family (HUF) and Joint Stock Companies. HUF membership is inherited through birth and consists of up to 3 generations of male family members. The Karta manages the family business and members have unlimited or limited liability based on their role. Ownership shares can fluctuate over time. A joint stock company is an artificial legal entity with a perpetual existence. It allows for voluntary association of individuals for profit seeking. Company shares are transferable and ownership is separated from management. It provides benefits like vast financial resources, limited liability, and continuity over generations. The key differences between public and private companies include minimum member requirements, restrictions

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    Huf

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    The document compares and contrasts two types of business organizations - the Hindu Undivided Family (HUF) and Joint Stock Companies. HUF membership is inherited through birth and consists of up to 3 generations of male family members. The Karta manages the family business and members have unlimited or limited liability based on their role. Ownership shares can fluctuate over time. A joint stock company is an artificial legal entity with a perpetual existence. It allows for voluntary association of individuals for profit seeking. Company shares are transferable and ownership is separated from management. It provides benefits like vast financial resources, limited liability, and continuity over generations. The key differences between public and private companies include minimum member requirements, restrictions

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    17 views16 pages

    HUF & Companies

    Uploaded by

    Sandeep S Luthra
    The document compares and contrasts two types of business organizations - the Hindu Undivided Family (HUF) and Joint Stock Companies. HUF membership is inherited through birth and consists of up to 3 generations of male family members. The Karta manages the family business and members have unlimited or limited liability based on their role. Ownership shares can fluctuate over time. A joint stock company is an artificial legal entity with a perpetual existence. It allows for voluntary association of individuals for profit seeking. Company shares are transferable and ownership is separated from management. It provides benefits like vast financial resources, limited liability, and continuity over generations. The key differences between public and private companies include minimum member requirements, restrictions

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 16

    HUF & Companies

    Joint Hindu Family


    Inherited property Operation of Hindu Law Confined to people who constitute the coparcenary interest. 3 successive generations Family business is part of the inheritance

    Features
    Male Members Membership due to birth Karta manages the business Liability
    Unlimited for Karta Limited for others to their share

    Fluctuating share Continued existence

    Joint Stock Company


    Person artificial, invisible, intangible and existing only in the eyes of the law. Voluntary association of individuals for profits, capital divided into transferable shares, ownership of which is the condition for ownership.

    Features
    Distinct legal entity Perpetual existence Limited liability Transferability of shares Separation of Ownership & Management Separate property Common seal

    Advantages
    Vast Financial resources Continued existence Limited liability Scattered risk Transferability of shares Economies

    Advantages
    Expert Management Scope for growth Public confidence Social Advantage

    Disadvantages
    Difficulty in formation Government Control Economic Oligarchy Fraudulent Practices Delayed decision making Neglect of minority Lack of personal touch Difficulty in winding up

    Types of Companies
    Mode of Incorporation Public interest Liability of members Company to Company relationship Nationality

    Mode of Incorporation
    Statutory Companies
    RBI LIC

    Registered Companies
    Companies act 1956

    Liability
    Limited by Share Company limited by Guarantee Unlimited Company

    Public Interest
    Private Company Public Company Government Company

    Company to Company Relationship


    Holding Company Subsidiary Company
    Controls the majority composition of the Board with the sole objective of controlling the management Holding company hold more than 50% of the equity share capital.

    Basis of Nationality
    Domestic company Multi-National Company

    Public v/s Private Companies


    Number of Members
    Private - 2 Minimum / 50 Maximum Public 7 Minimum

    Transfer of Shares Issue of prospectus Number of Directors : private -2 / Public-3 Certificate for commencement of Business Qualification Shares

    Public v/s Private Companies


    Statutory Meeting Index of members Managerial Remuneration Restrictions on loans

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