11th Class Business Studies Forms Of Business Organisation Question Bank Forms Of Business Organisation (Short)

  • question_answer
    What is the role of Karta in a Joint Hindu Family business?


    Ans.     In a Hindu Joint Family, the Karta or Manager occupies a pivotal and unique place. In that there is no comparable office or institution in any other system in the world. His office is independent and hence, his position is termed as sui generis. Karta's position is sui generis. As had been explained earlier, his position/ office is independent and there is no comparable office in any system in the world.
    1. He has unlimited powers and even though he acts on behalf of other members, he is not a partner or agent.
    2. He manages all the affairs of the family and has widespread powers.
    3. Ordinarily he is accountable to none. The only exception to this rule is if charges of misappropriation, fraud or conversion are levelled against him.
    4. He is not bound to save, economise or invest. That is to say that he need not invest in land if the land prices are about to shoot up, and hence, miss out on opportunities etc. He has the power to use the resources as he wishes, unless the above mentioned charges are levelled against him.
    5. He is not bound to pay income of joint family in any fixed proportion to other members. This means that the Karta need not divide the income generated from the joint family property equally among the family members. He can discriminate one member from another and is not bound to treat everyone impartially. Only responsibility is that he has to pay everyone something so that they can avail themselves of the basic necessities such as food, clothing, shelter, education etc.
    Karta's Liabilities:
    Apart from all the unlimited powers that are bestowed upon the Karta, he also has liabilities thrust on him.
    1. Karta has to maintain all the members of the joint family properly. If there is any shortfall in his maintenance, then any of the members can sue for maintenance.
    2. He is responsible for the marriage of all the unmarried members in the family. Special emphasis is laid with respect to daughters in this case.
    3. In case of any partition suit, the Karta has to prepare accounts.
    4. He has to pay taxes on behalf of the family.
    5. Karta represents the family in all matters, including legal, religious and social matters.

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