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  • 0211 Huf

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    GALAXY INTERNATIONAL Institute of Logistics
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    The document discusses the Hindu Undivided Family (HUF), a form of business organization unique to India. An HUF is owned and managed jointly by members of an extended Hindu family or joint Hindu family. It is administered according to Hindu law and controlled by the eldest male member called the Karta. The business is passed down from generation to generation with minor members and women having rights according to different systems prevalent across India. Benefits include effective control, continuity of business, and limited liability, but it also has limitations such as limited resources and the dominance of the Karta.

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    0211_HUF

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    The document discusses the Hindu Undivided Family (HUF), a form of business organization unique to India. An HUF is owned and managed jointly by members of an extended Hindu family or joint Hindu family. It is administered according to Hindu law and controlled by the eldest male member called the Karta. The business is passed down from generation to generation with minor members and women having rights according to different systems prevalent across India. Benefits include effective control, continuity of business, and limited liability, but it also has limitations such as limited resources and the dominance of the Karta.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    3 views7 pages

    0211 Huf

    Uploaded by

    GALAXY INTERNATIONAL Institute of Logistics
    The document discusses the Hindu Undivided Family (HUF), a form of business organization unique to India. An HUF is owned and managed jointly by members of an extended Hindu family or joint Hindu family. It is administered according to Hindu law and controlled by the eldest male member called the Karta. The business is passed down from generation to generation with minor members and women having rights according to different systems prevalent across India. Benefits include effective control, continuity of business, and limited liability, but it also has limitations such as limited resources and the dominance of the Karta.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 7

    HINDU UNDIVIDED FAMILY

    (HUF)

    Date : 02/11/2020
    Duration : 10:30 AM – 11:45 AM
    HUF
    It’s found only in India
    Administered by Hindu Law
    Business is managed by the head of the family ( Eldest
    member) – called as Karta

    Co-Parceners – All the members of the business


    It refers to a form of business organization which is owned
    and carried on jointly by the members of the Hindu
    Undivided Family (HUF), also know as Joint Hindu
    Family business
    Characteristics
    Formation

    Liability

    Control

    Continuity

    Minor Members
    Systems used in HUF
    1. Dayabhaga System

    It prevails in West Bengal and allows both the male


    and female members of the family to be co-parceners.
    A son gets right in the ancestral property only after the
    death of his father.

    2. Mitakashara System

    It prevails all over India except West Bengal.


    It allows only the male members to be co-parceners in
    the business.
    Merits

    Effective control

    Continued Business Existence

    Limited Liability of Members

    Expanded Loyalty and Cooperation


    Limitations

    Limited resources

    Unlimited Liability of Karta

    Dominance of Karta

    Limited Managerial skills

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