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.
