Sunday, August 19, 2007

Joint hindu family business

Ques1. Who are co-parceners? What is co-parcenary interest?
Ques2. "Rewards are not related with performance in a joint hindu family business". Do you agree? Explain.


bindu dewan said...

Ans 1: The property of a Hindu is inherited after his death by his sons, grandsons and great-grandsons .These three successive male generations become joint owner of the ancestral property. They are known as co-parceners.

Co-parcenery Interest is the interest of each coparcener in the family’s business.

bindu dewan said...

Ans 2. Yes I agree, Rewards are not related with performance in a joint Hindu family business.

Responsibility is not matched with Reward: - The karta manages the business single-handedly and he alone bears unlimited liability. But his share in the business is equal to that of any other member. He receives no extra reward for the extra work he has to do. There is little incentive for him to work hard.