Ans. This statements is False.
(i) The senior most member of the Hindu Joint family becomes head of the firm who manages the business on behalf of the other members. He is known as Karta.
(ii) The membership of Joint Hindu Family business managed by the senior most member of the Joint Family is called Karta. Karta is only manager, controller and co-coordinator of the business. He can enter into contracts with third party with or without consulting with co-parceners.
(iii) Karta being the head of the family members manages the whole business by his way. Co – parceners may provide help in conducting the business but they have no right to question the Karta’s decisions.
(iv) Co – parceners cannot participate in the management of the business. Hence, they cannot inspect the books of accounts. They cannot represent the firm, cannot bind the firm by their acts, and their liability is also limited to the extent of their interest i.e. share in the firm. Hence they cannot have access to books of accounts.