Joint Hindu Family Firm | Joint Stock Company |
Meaning | Meaning |
When joint Hindu family conducts business, inherited by it as per Hindu law, it is called a Joint Hindu family firm. | It is voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership. |
Membership | Membership |
There is no limit on the number of members since the membership keeps on changing depending upon the birth and death in the family. | The minimum of number of members are 2 in private limited company and a maximum of 50. In a public limited company, minimum number of members are 7 and there is no maximum limit |
Liability | Liability |
Karta's liability is unlimited. Coparceners liability is limited. | The liability of every shareholder is limited to the extent of the unpaid amount on shares held by him. |
Management | Management |
Karta is the key manager of business who may be assisted by co-parceners to a limited extent. | Board of Directors constitute the management of company. Directors run the business very efficiently since they possess the required expertise. |
Act / Law | Act / Law |
It is governed by the Hindu law. | Joint stock company is controlled under the Indian companies Act, 1956 |
