Distinction difference between partnership firm and hindu joint family firm partnership is the result of an agreement between the parties. It has no legal entity distinct and separate from that of the members who constitute it. Joint hindu family business is a distinct type of organisation which is unique to india. The term hindu undivided family has not been defined under the income tax act. Culture is key in family firm mergersacquisitions the. All the male members are blood relatives and all the women are either mothers, wives, unmarried daughters, or widowed relatives, all bound by the common sapinda. Study of your project now, for depth knowledge of this business, you can visit a joint hindu family business. It is voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership. Case studies of family business groups in thailand dissertation of the university of st. In a joint hindu family business no member of the family can say that he.
Disadvantages of joint hindu family business 1 limited resources joint hindu from ec 1 at lse. Nowhere else in the world is this a legal form of business entity. In hindu society, desertion is socially, religiously and culturally approved. Gallen graduate school of business administration, economics, law and social sciences hsg to obtain the title of doctor oeconomiae submitted by chernrerthai sithikornkul from thailand. You can ask them about the number of members in the business, why they opted for joint hindu family business. Successful integration in crossborder acquisitions.
Madhu bhatia, tutorials point india private limited. Why is joint hindu family business established in india. Merger control 2020 laws and regulations india iclg. Its origin can be traced to the ancient partriarchal system where the patriarch or the head of the family was the unquestioned ruler, laying down norms for the members of his family to follow. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. Mergers and acquisitions in india a general analysis. Karta and his legal position in joint hindu family shruti sahni yogendra singh upes, dehradun upes, dehradun a person who governs the proper functioning of a joint family is the head or the karta of the family. In other words it can be said that mutual agreement between persons constituting partnership is necessary for the establishment of partnership. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india.
In a partnership no new partner is admitted without the consent of all the partners, while in the case of a joint hindu family firm a new member is admitted just by birth. A case study on indian banking sector neha duggal research scholar, university school of management, kurukshetra university. The joint family is the bedrock on which hindu social organization is built. A joint hindu family business continues to exist on the death of any coparcener. Of course therere many non family members too but its main stake foldersre from a family. Joint hindu family or hindu undivided family huf is an exclusive feature of hindu law. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india.
Difference between a partnership and joint hindu family. When joint hindu family conducts business, inherited by it as per hindu law, it is called a joint hindu family firm. Chapter 4, joint hindu family business and cooperative society. Hindu undivided family is involved in a business, giving the ownership to head of the family. Such a database is a fantastic tool to get access to the basics of many legal areas, almost everywhere. A case study savitri shahani there has been no systematic research into the structure of the family in the field whether in rural or urban areas, and the most serious writers on the subject hare relied on general observations. Constitution of hindu joint family the institution of a hindu joint family 4 is peculiar to the hindu jurisprudence and has its origin in ancient orthodox texts and writings of smritikars etc. The joint hindu family business is a distinct form of organisation peculiar to india. Joint hindu family business an affectionate business. Simply, a hindu joint family would at best be described as, the lineal descendants and their dependants where, the former trace their origin to one common ancestor. Types of business entities in india business in india. It is made up of multiple family generations all of whom come together under one roof and bound by the same.
I do believe that gtdt has a real future and, according to me, its one of the best legal database ive ever had access to in these last 10 years. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. Joint hindu family firm is created by the operation of law. Give an example of joint hindu family business in india. Mallappa mahalingappa, the supreme court while pointing out the distinction between the joint family business and partnership firm observed. Family firms and business groups play an important role in many emerging economies. The joint hindu family business is controlled under the hindu law instead of the.
Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family. Panikkar has rightly observed, the caste system, the village community and the joint family system constitute the basic pillars of the indian social system. Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled. It is a specific type of organization that is restricted to certain parts of india. The operation of law creates a joint hindu family business. So, a parsi, muslim or christian cannot create a huf. It basically refers to an extended family set up characteristic of the indians. Provided further that a hindu undivided family as such. In this paper we study how different aspects of family involvement influence technological innovation in a. India merger control getting the deal through gtdt. We provide strategic legal, regulatory, and tax advice coupled with industry expertise in an integrated manner. Disadvantages of joint hindu family business 1 limited.
Characteristics of joint family system in india 1051 words. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of. Iclg merger control laws and regulations india covers common issues in merger control laws and regulations including relevant authorities and legislation, notification and its impact on the transaction timetable, remedies, appeals and enforcement and substantive assessment in 55 jurisdictions. A partnership arises out of a contract, whereas a joint hindu family business arises by the operation of law and is not the result of a contract. It is a unit and in all affairs it is represented by its karta or head. Substantive changes introduced in the indian merger. Joint hindu family is a unit considers by law as separate entity for the purpose of taxation, but it is not considered as separate legal person. Family businesses, business case studies, entrepreneurship. Summary, conclusions and findings introduction from time immemorial woman desertion, of course divorce too, has been an integral part of human society in general and the institution of marriage and the family in particular.
The business of joint hindu family is controlled under the hindu law instead of partnership act. In this form of business ownership, all members of a hindu undivided family do business jointly under the control of the head of the family who is known as the karta. Hindu joint family under mitakshara law the hindu joint family is a normal condition of the hindu society. What are the features of a joint hindu family business. Essays and paragraphs, indian society on march 18, 2019 by h patra. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. There are various forms of business entities in india private ltd company, public ltd company, unlimited company, sole proprietorship, joint hindu family business, partnership, cooperatives, limited liability partnership, etc. While the family firms cultural distinctiveness is an asset that does not typically appear on the books, preserving these valuable and central aspects of a family firm should be considered in the midst of these transactions. A joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. A hindu joint family or hindu undivided family huf or a joint family is an extended family arrangement prevalent among hindus of the indian subcontinent, consisting of many generations living under the same roof.
It does not have any separate and distinct legal entity from that of its members. Distinction difference between partnership firm and. Joint hindu family business is the oldest and specific form of business organization found only in india. The following are the different business structures in india. Mergers and acquisitions in india a general analysis corporate law the indian economy has been growing with a rapid pace and has been emerging at the top, be it it, randd, pharmaceutical, infrastructure, energy, consumer retail, telecom, financial services, media, and hospitality etc. But under dayabhaga law, both males and females can be members under certain conditions.
Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. All you wanted to know about reverse merger the hindu. Let us learn about this form of organisation and its unique features. Within its fold no outsider, except by adoption, can be admitted by agreement or otherwise. A combination filing must be made within 30 days of approval of a proposal of merger or amalgamation by the board of directors or of execution of any agreement for acquisition or acquiring control of enterprise, whichever is earlier. Before the merger was announced, there was talk of a reverse merger between the two. Without sharing the family business to external parties and using the family business profit for the well being of particular family. This article provides information about the characteristics of joint family system in india. Joint hindu family business is a different type of organization, which is found only in india. In joint hindu family business, only males can be copartners and not females under the mitakshara law. The system is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same home, all bound by the common relationship. What are the aims and objectives of a joint hindu family.
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