Define Joint Hindu Family Business
Joint Hindu family business is a type of business organization which is found only in India. It is not practised or followed elsewhere in the world. Joint Hindu family business is fully operated & managed by Hindu law. These businesses are managed by all members of a joint Hindu family. The eldest member of the family is considered the head & controls the whole business.
Head of the business is called “Karta” & looks after all the finances of business. It is one of the unique types of business organisation. Joint Hindu family Businesses are carried from generation to generation. Here the liability of Karta is unlimited & rest all have liability as per their share in the business. Membership in business is acquired either by birth in family or marriage to a male member of the family.
There are basically 2 types of joint Hindu family business: Mitakshara & Dayabhagha. In Mitakshara only male members can become a member of the business. But in Dayabhagha both male & female persons of the family can become a member of the business.
Examples of Joint Hindu Family Business are:
Joint Hindu Family Business Examples
Reliance Industries Limited
Reliance Industries Limited is a Joint Hindu Family business form of business organisation. It is a company headquartered at Mumbai & was founded by Dhirubhai Ambani. This company is engaged in businesses like textiles, energy, petrochemicals, telecommunications & retail.
Son of Dhirubhai Ambani, Mukesh Ambani is the present Karta of the company. He is current chairman & managing director of the Reliance Industries Ltd. His wife Nita Ambani is non-independent Director of the companies. Their children are also members of business & are managing their affairs.
Tata Sons Private Limited
It is a joint Hindu family business which is headquartered in Mumbai. It was founded in 1868 by Jamsetji. His generations are toady managing the business. It is a company which is engaged in businesses like automobiles, telecommunication, airline, power & chemicals. Natarajan Chandrasekaran is present chairman of tata sons.
At present, Jamsetji generations are the major stakeholders in the company and managing the whole business. The whole family is running the business.
Mahindra & Mahindra Limited
This is a car manufacturing business headquartered at Maharashtra, Mumbai. It was established in 1945 in Ludhiana. Initially, its name was Muhammad & Mahindra. Later on, it was renamed as Mahindra & Mahindra.
Its founders were 2 brothers Kailash Chandra Mahindra and Jagdish Chandra Mahindra and Malik Ghulam Muhammad. Anand Mahindra, the grandson of Jagdish Chandra Mahindra is the chairman of Mahindra group. Generations of its founders are today managing the whole business.
Haldiram’s Private Limited
Haldiram is a Joint Hindu family business which was founded in Bikaner, Rajasthan, India. It has its headquarter in Nagpur, Maharashtra, India. It is an industry which is engaged in the production of food products. It was founded by Shri Ganga Bhishen Agarwal in 1937. It was initially started as a sweet & namkeen shop in Bikaner, Rajasthan.
Rajendra Agarwal is the present chief executive officer of haldiram. Generations of its founders are today the major stakeholders in the company.
Conclusion of joint Hindu family business
Below is the Conclusion of the joint Hindu family business. These are also the main feature of the joint Hindu family business.
- The formation of the joint Hindu family business found only in India.
- The eldest member of the family is considered the head & controls the whole business.
- The liability of Karta is unlimited because he is the only decision-makers. On the other hand, co-parceners has limited.
- Joint Hindu family business is fully operated & managed by Hindu law.