
Contents
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I. Introduction I. Introduction
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II. Fiduciary Duties in Agencies, Corporations, and Trusts in India II. Fiduciary Duties in Agencies, Corporations, and Trusts in India
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A. Agency Law A. Agency Law
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B. Corporate Law in India B. Corporate Law in India
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1. Pre-2013 Duties 1. Pre-2013 Duties
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2. Post-2013 Duties 2. Post-2013 Duties
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C. Trust Law C. Trust Law
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III. The Hindu Undivided Family III. The Hindu Undivided Family
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A. Key Areas of Law and the Hindu Undivided Family A. Key Areas of Law and the Hindu Undivided Family
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B. What Is a Hindu Undivided Family, How Does It Hold Property, and How Does It Operate? B. What Is a Hindu Undivided Family, How Does It Hold Property, and How Does It Operate?
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1. Formation, Ownership of Assets, and Membership 1. Formation, Ownership of Assets, and Membership
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2. Operation, Partition, and Succession 2. Operation, Partition, and Succession
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C. Comparison to the Roman Pater Familias C. Comparison to the Roman Pater Familias
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IV. Duties Owed by the Karta to Members of the Hindu Undivided Family IV. Duties Owed by the Karta to Members of the Hindu Undivided Family
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A. The Karta’s Duty of Loyalty (and Duty of Care?) A. The Karta’s Duty of Loyalty (and Duty of Care?)
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B. Sale of HUF Property B. Sale of HUF Property
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C. Maintenance Duties to HUF Members? C. Maintenance Duties to HUF Members?
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V. Implications for Fiduciary Duty Analysis? V. Implications for Fiduciary Duty Analysis?
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VI. Conclusion VI. Conclusion
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Acknowledgments Acknowledgments
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33 Fiduciary Principles in Indian Law
Get accessVikramaditya S. Khanna is William W. Cook Professor of Law at University of Michigan Law School.
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Published:09 May 2019
Cite
Abstract
This chapter examines fiduciary principles in Indian law. Fiduciary duties, such as those owed by corporate directors, trustees, agents, and lawyers, are commonplace in India. However, there are contexts in India where the fiduciary duties appear unusual. A particularly important example of this are the duties owed by the person (called the Karta) who manages the affairs of a Hindu Undivided Family (HUF). These duties differ from those seen in the more common types of fiduciary relationships and raise a number of interesting questions for greater exploration. This chapter first provides an overview of fiduciary duties in India that are common across many parts of the world, focusing on agency law, trust law, and corporate law. It then explains what the Karta and the HUF are, how the HUF holds property akin to a joint tenancy, how it operates, how it can be created and terminated, how it compares to the pater familias of ancient Rome, and what areas of Indian law impact its continued existence. The chapter then explores the duties owed by the Karta to people within the HUF, along with other legal rules and practical considerations that operate to police the Karta’s behavior in ways that supplement his or her limited fiduciary duties. Finally, the chapter closes with how the Karta’s duties raise some interesting questions about the growth and development of fiduciary principles that might be fruitfully explored in the future.
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