Hindu Undivided Family And Corporate Governance
The text discusses the recognition of Hindu Undivided Family (HUF) as a separate legal entity for tax purposes in India. This distinction is significant as it is intertwined with corporate governance structures and provides tax benefits. The chapter also explores the role of HUF in capital accumulation within family-owned business groups. There is a debate on whether HUF is still relevant in modern times or if it is an archaic tradition. The Law Commission of India has questioned its congruence with corporate laws. The chapter examines the fiduciary duties associated with HUF and discusses its formation and key features.
Hindu Undivided Family (HUF) holds significance in the context of corporate governance in India due to its recognition as a separate legal entity for tax purposes. HUF plays a role in the capital accumulation within family-owned business groups and provides tax benefits. However, there is a debate on its relevance in modern times and its congruence with corporate laws as questioned by the Law Commission of India. The fiduciary duties associated with HUF, its formation, and key features are also important aspects to consider in the context of corporate governance.
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