A Joint Hindu Family business is governed by Hindu Succession Act, so Formation of Chintu's Family Business was easy.
mom &
Full controlling power always stays in the hands of Karta
dadi
Aunt & Uncle
Chintu's Dadaji being the eldest in the house takes all business related decision as he is the karta. And has dominance over coparceners
Chintu
Soon after... a few months Chintu's younger brother Sonu took birth.
A new born baby is made the member of the business as soon as he/she takes birth
Business was going well....until
They suffered a huge loss due to high competition.
The liability of all members except the karta is limited to their share of co-parcenery property of the business. The karta however, has unlimited liability
So, Dadaji's two sons were only liable to pay 20,000 (the amount which they had contributed) Where a Dadaji had to overcome the loss 3,00,000 by giving his personal asserts
Their Cloth Business started again
Death of Grandfather
Risk can approach in any form of business, at any time and the family members have to be prepared
Sonu was made the minor coparcener of the family business
Continuation of business
After the death of grandfather the business was continued by Chintu and Sonu's Father.
After introduction of some new products and sales strategies their business was back to normal
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