Bhagya

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 6 Correspondence with Members students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 6 Correspondence with Members

→ The company collects owned capital by issuing shares to its members/shareholders.

→ Shareholders are the real owners of the Company.

→ Secretary acts as a Public Relations Officer and does all the correspondences with the members on behalf of the Company.

Secretary has to write letters to the members on several occasions-

• Allotment Letter
• Regret Letter
• Issue of Share Certificate
• Issue of Bonus Shares
• Execution of Right Issue
• Letter for Payment of Dividend
• Dividend Mandate
• Approval of Transfer of Shares
• Refusal of Transfer of Shares
• Notice and Agenda of General Meeting
• Notice of loss of share certificate
• Reply to the queries raised by the members
• Letters to legal representatives regarding Transmission of Shares

→ Various points like providing correct information, use of technology, use of lucid language, prompt response, maintain secrecy, etc. is to be considered by the secretary in correspondence with members.

Issue of Share Certificate-

• Registered Document
• Title to the shares issued by the company
• Duly stamped and signed by two directors and countersigned by the secretary under the common seal of the company
• Issued or dispatch share certificate to the allottee within two months after allotment of shares
• Send by the registered post
• Contains details like name of the shareholder, number of shares held with a distinctive number, etc

Payment of Dividend-

• Dividend is distributed between the shareholders of the company
• Dividend is recommended by Board of Directors, declared and approved by shareholders in Annual
  General Meeting

Payment of Dividend:

1. Dividend Warrant
2. Electronically (ECS, NEFT, RTGS)

The letter contains a number of equity shares held, Dividend warrant number, gross dividend, TDS if any, the net amount of dividend, etc.

Issue of Bonus Share-

• Issued to fully paid-up shares
• Given free of cost and also known as capitalization of reserves
• Contains a total number of shares held, ratio decided, bonus share issued and credited to the Demat account with client ID no. date of credit, etc.

Reply Letter-

• Sent to a member who has query/ raised doubt regarding low rate of dividend
• Contains or specifies reasons for the low rate of dividend.

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 5 Deposits students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 5 Deposits

→ Company can raise funds by accepting deposits from public. It is a cheap source to raise funds. There is no dilution of control.

→ Company can invite deposits:

→ Deposit can be secured or unsecured. For secured deposits, a charge on company’s tangible assets are created

Period / Tenure of Deposit-

• Minimum 6 months, maximum 36 months.
• Premature repayment – after minimum 3 months.
• Company can also renew deposit with same terms and conditions of issue.
• Company cannot accept deposits repayable on demand made by depositor.

→ Deposit Receipt has to be issued within 21 days from date of receipt of deposit money.

Deposit Trustee-

• Appointed when secured deposits are issued.
• The company can appoint one or more Deposit Trustees.
• Protect the interest of depositors.

Trust Deed-

• Company signs a contract with Deposit Trustees.
• Contains terms and conditions of the contract.
• Must be signed at least 7 days before issuing the circular or advertisement.

→ If Deposit Amount + Interest is more than Rs. 20,000, then Deposit Insurance must be taken.

Deposit Repayment Reserve Account-

• Opened in Scheduled Bank.
• On or before 30th April, the company deposits up to 15% amount in DRRA.
• used for repaying deposits.
• Private companies accepting deposits from members cannot open Deposit Repayment Reserve Account.

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 6 Directors and Key Managerial Personnel of a Company students can recall all the concepts quickly.

Maharashtra State Board Class 11 Secretarial Practice Notes Chapter 6 Directors and Key Managerial Personnel of a Company

Reasons leading to separation of ownership and management in the Company-

• Large business organization
• Large shareholders are scattered all over
• Disinterest on part of most of the shareholders
• Incapability in terms of qualification
• Inability on part of most shareholders to manage company.

Hierarchy of Company Management-

• CEO — Chief Executive Officer
• CFO — Chief Financial Officer
• COO — Chief Operating Officer
• CLO — Chief Law Officer
• CTO — Chief Technology Officer
• CMO — Chief Marketing Officer
• CS — Company Secretary

Director-

Meaning:

• As per Section 2(34) of the Act, Director \means a director appointed to the Board of the company.
• Director is a person appointed to manage, direct and supervise the affairs of a company.

Provisions and Rules with respect to appointment of a Director-
Section 149 of the Companies Act

1. Only an Individual can be appointed as Director.
2. Minimum number of directors:

• Public Company :— 03
• Private Company :— 02
• One-Person Company (OPC)

3. Maximum Number of Directors:
15 Directors are allowed. If a company requires more than fifteen, a special resolution should be passed.

4. Prescribed classes of company
At least one woman director.
5. At least one director who stay in India for at least 182 days during the financial year.
6. Listed public company should have l/3rd of its Board as an Independent Director.
7. Allowed to hold directorship of maximum Twenty (20) companies at the same time.
8. Maximum number of public companies in which a person can act as a director is Ten (10) only.

Director Identification Number (DIN)-

• Unique identification number for existing director or person desiring to be the director of company.
• Compulsory to acquire DIN
• Only single DIN is needed, irrespective of number of directorship
• On resignation of a director of a company, DIN does not get cancelled.
• DIN can be obtained through an online process
• Pre-requisite for e-filing of company’s documents
• Document authorised by a director should mention his DIN with his name.

Importance Of Din-

1. Helps the investors of the company to take more accurate and informed decision
2. Detection and handling of offenses committed by Director
3. Helps to handle problems arising due to a company disappearing after raising money from public.

Qualification of a Director-

• No prescribed academic or professional qualifications
• If any provision in Articles of company is mentioned for a minimum share qualification shares.

Types of Directors

1. First Directors
2. Rotational Directors
3. Additional Directors
4. Alternate Director
5. Woman Director
6. Nominee Director
7. Executive Director
8. Non-Executive Director
9. Independent Director
10. Small Shareholders’ Director

Appointment of Director-

(A) First Director
(B) By Members
(C) By board

• additional  Co-op director
• Casual Vacancy
• Alternate Directors
• Nominee of an Institution

(D) By Tribunal
(E) By Central Government
(F) By Proportional Representation

Powers of the Directors-

• Works as a team
• Cannot exercise the powers which are exercised by shareholders
• Exercise the powers — (i) by passing a Resolution (ii) by Delegation to different committees created by Board
• Exercise of powers — subject to provision of Act, Memorandum of Association, Articles of Association

Duties of a Director-

(1) Statutory Duties:

• To file Return of Allotments
• Act accordance of Articles of company
• Disclose interest in a transaction
• Attend Board Meetings.
• Appoint first auditors

(2) General Duties:

• Duty of good faith
• Duty of Care
• Duty not to delegate his function to others

Liabilitird of Directors –

1. Liability to the company
2. Liability to the third party
3. Liability for breach of statutory duties
4. Liability for the acts of Co-directors
5. Criminal Liability

Legal Position of Directors-

• Directors as Agents
• Directors as Managing partners
• Directors as Trustees

Remuneration of Directors and Managing Director u/s 197-

Entitle in form of

• Salary
• Specified percentage of net profits / commission and sitting fees for attending board meetings

Public Company Director’s Salary
Should not exceed 11% of net profit in a financial year.
(Excludes sitting fees paid or to be paid for meeting)

Removal of a Director-

1. Shareholders u/s 169
2. Tribunal u/s 402

Vacation of office by a Directors: u/s 167 of the Act

• Any disqualification u/s 164
• Absentee at Board Meaning u/s 167.
• Contravention of Provision of Act
• Failure to Disclose Personal Interest
• Disqualification by Court or Tribunal
• Imprisonment for an offence
• Provision of the Act

Key Managerial Personnel (KMP) of the Company-

Meaning:
u/s 2(51) KMP means the following :

• The CEO or the Managing Director or the Manage
• The Company Secretary
• The Whole Time Director
• The Chief Financial Officer
• Any other officer as may be prescribed

u/s 203 of Act: Stated that every listed company and public company with a share capital of Rs. 10 crores or more should have following Whole Time KMP

• The Managing Director / The Chief Executive Officer/The Manager and in the absence a Whole-time Director
• A Company Secretary
• A Chief Finance Officer

The Managing Director: u/s 2(54)-

1. Appointment:

• An agreement with company
• A Resolution passed by company in General Meeting
• A Resolution passed by Board of Directors
• A clause in the Articles of Association of the company

2. Term of Appointment: Term of 5 years

Disqualification for post of Managing Director

• Any person less than 21 years of age and more than 70 years of age
• Undischarged insolvent person or at any time been adjudged as an insolvent
• Suspended payment to his creditors at any time
• Convicted by a court of law of an offence with a sentence of more than six months period.

Powers and Duties of Managing Director-

• Appointed to manage the affairs of the company.
• By Agreement made with company, by Memorandum and Articles of Association, Resolutions passed by board and members.
• Substantial powers of management.
• Relate to particular divisions of the business.
• May be more than one Managing Director in business / company.
• Superintendence control and directions of the Board of Directors.
• Must be a Director of the company.
• Fulfill his duties, responsibilities and liabilities as an ordinary director of the company.

The Whole Time Director of the Company (WTD) u/s 2(94)-

• whole time employment.
• whole / full time to work.
• employee director.
• does not exercise substantial powers.
• perform important administration functions.

The Manager: u/s 2(53)-

• Superintendence, control and direction of the Board.
• To manage whole or substantially whole affairs of the company.
• Occupies the position of a manager (or known by in any name). .
• Need not be the director of the company.
• Company cannot have more than one manager.

Appointment of different categories of managerial personnel (u/s 196) :

• It is prohibited to appoint both Managing Director and Manager simultaneously.
• There is no prohibition on having whole time director and manager simultaneously.
• There is no prohibition on having managing director and whole time director simultaneously. —
• There is no prohibition on having more than one Managing Director in a company.

Company Secretary-

Meaning:
Section 2(24)

• Company Secretary is appointed to perform functions of Company Secretary under the Act.
• Person should be a member of the Institute of Company Secretaries of India (ICSI).
• Appointment a whole-time company Secretary -(a) Listed companies (b) All other companies with a paid-up share capital of five crores or more.
• Appointment a whole time Company by a resolution of the Board
• Cannot hold office in more than one company.
• Can be director of a company with the permission of the Board.
• Appointed by the Promoters of the company is the first Secretary is called as ‘Pro-tem Secretary’ for fulfilling different formalities during formation of the company
• Must be recorded in the Register of Directors and key managerial personnel and their shareholdings.

Dut’iks of Company Secretary-

(i) Statutory Duties

• Organize and present at all meetings
• Make minutes of all meetings
• Correspondence with the shareholder
• Issuing notices and circular
• Maintain and update different Registers and books
• Filing all necessary returns with the Registrar of companies

(ii) General Duties

• Provide guidance to the Board and Director
• Represent before different authorities and regulators
• Assist board in the conduct of the affairs of the company.
• Assist and advise the Board ensuring corporate governance.
• Perform all the duties time to time.

Rights of Company Scretary –

1. Control and supervise his department
2. Indemnified by company if any loss is suffered by Secretary
3. Right to sign a document as Principal officer
4. Get remuneration as employee of the company

Role Of Company-

1. As a Statutory Officer
2. As a Coordinator
   (a) Internal
   (b) External
3. As an Administrative Officer

Secretarial Audit: u/s 204-
Meaning:

• This is an audit which checks the compliance of various legislations including Companies Act and other corporate and economic laws applicable to the company.
• In order to prevent risk and losses.
• Gives confidence to regulators, Management, Stockholders.

The Chief Financial (finance) Officer (CFO)-

• Responsible for company’s finances.
• Analyzing company’s strengths and weaknesses.
• Taking timely corrective measures.
• Timely and reporting accurate financial information of the company.
• May be full time employee or contractual.
• Need not be Director.
• Compulsorily requires to sign audited financial statements.

Word Meaning:

incapability – unable applied to a person; elaborately – in detailed; statutory – required as per the law; inability – unable to do something; vastness – very great in ; hierarchy – order in which members of organization are placed; extensive – large; composition – formation; indicative – certain examples set for something; Detection- observation; indicative – certain examples set for something; eligently – in simple manner; academic – formal education in school and colleges; entrusted – the responsibility given to someone; impose – to force; parameters – measurable set of condition; mandatory – compulsory; entitlement – right; tribunal – a body establish to solve the disputes; imprisonment – jail; obedience – act as given order; superintendence – management; prudence – common sense; virtue – merit/principles; delegate – a person authorised to represent others; substantial – important; undischarged – not officially removed; legislations -law; adjudge – to consider; devotes – to give; simultaneous – at a time; prohibition – restricted/ stop; authentication – originality; manifolds – many in numbers; mouthpiece – speaker; amalgamation – Union of two or more companies; reor ganization – rearranging; diverse – various; standardizing – systematic arrangement; harmonizing – to go together; varied – various; non-compliances – not working as per the law.

By going through these Maharashtra State Board Class 11 Political Science Notes Chapter 6 Role of the Judiciary students can recall all the concepts quickly.

Maharashtra State Board Class 11 Political Science Notes Chapter 6 Role of the Judiciary

Introduction

This chapter examines the concepts of judicial independence, judicial activism and Judicial Review.
We will also study about the Judicial system in India, Writs and some important judicial landmarks in India.

Judicial Independence

Modern governments have three branches viz. legislature, executive and judiciary. There are constitutional and legal provisions to ensure that the judiciary stays independent of the other two branches. This ensures that all those who appear before the judiciary are treated on an equal plane.

The concept of an independent judiciary is recent as in a Monarchy, the judiciary would be under the control of the Monarch. The first country to explicitly make provisions in it’s Constitution for an independent judiciary was the USA. Judges of Supreme Court in the USA and other subordinate courts are appointed by the President subject to confirmation by the Senate. Judges can be removed from office only on grounds of violating the constitution by a process called impeachment.

Significance of judicial independence:
Judicial Independence it helps the judiciary to administer justice in a free and fair manner without fear, favour or pressure of the executive or the legislature. It also ensures that all decisions are given in . accordance with the law. Welfare of citizens depends upon speedy and impartial justice.

Judicial System In India

Structure of Judicial System in India is laid down in the constitution. India has an integrated judicial system with the Supreme Court at it’s apex. The next level consists of High Courts followed by the District Courts. Generally, there is one High Court for each state but some states may share a High Court for e.g., Maharashtra and Goa. The High Court controls and supervises the functioning of the District courts and the other courts such as family courts, etc.

There are also tribunals established by both the Central as well as State governments to deal with disputes of a specialized nature e.g., Armed Forces Tribunal, National Green Tribunal, Maharashtra Administrative Tribunal etc. These bodies are known as “quasi-judicial bodies” but they are ultimately under the control of the Supreme Court.

The Supreme Courts judges are appointed by the President. A Collegium consisting of the Chief Justice of India and four senior most judges of the court recommends names for appointment of judges to the Supreme Court and High Courts.

Functions Of The Judiciary

The primary function of the Judiciary is adjudication of cases i.e., it takes decisions about disputes or cases according
to the law and then issues orders to ensure that these decisions are carried out. Each court can adjudicate only in it’s jurisdiction.

1. Original Jurisdiction – Certain matters can be heard for the first time only in certain courts for e.g., the Supreme Court of India has original jurisdiction in any disputes between two or more State governments, between the Government of India and one or more constituent States as well as disputes pertaining to the election of the President and Vice-President of India. This jurisdiction is exclusive to the Supreme Court of India.

2. Appellate Jurisdiction – Appeals against decisions of lower courts can be heard in the higher courts for e.g., The High Courts can hear appeals against decisions of District Courts. Similarly, the Supreme Court can hear appeals against High Court decisions in civil and criminal cases.

3. Advisory Jurisdiction – The Supreme Court gives it’s opinion on matters referred to it by the President of India but this .advice is not binding on the President.

4. Interpretation of the constitution and laws made under it is the authority of the Supreme Court and High Courts for e.g., the Supreme Court interpreted ‘Right to Life’ as the right to not merely exist but also to live with dignity and in a pollution free environment. The judiciary is the custodian of the Constitution.

5. Writ Jurisdiction – The Constitution empowers the Supreme Court and High Courts to issue writs for protection of Fundamental Rights. These are five types of writs specified in the constitution viz. Habeas corpus, Mandamus, Prohibition, Certiorari and Quo Warranto.

Judicial Activism

In recent times, the judiciary in India, has widened the scope of it’s functions. Individuals can file petitions on matters of public importance before the courts. This is known as Public Interest Litigations. Courts have sometimes taken note of matters of public concern without anyone filing a petition or complaint (suomoto). Judicial activism has also begun to scrutinize how the Executive exercises it’s authority for e.g., imposition of President’s Rule in a State. Supporters of judicial activism feel it is necessary to ensure that the executive and legislature discharge it’s functions properly while opponents feel it exceeds judicial scope and undermines parliamentary sovereignty.

Judicial Review

Judicial Review refers to the competence of the Judiciary to examine if any law or executive action is consistent with the constitutional provisions and if not, to declare it as unconstitutional and invalid. The origins of Judicial Review can be traced to the Marbury vs Madison case (1803) in the USA. The Federal Court had declared a government decision to be inconsistent with the US constitution. However, the US Constitution does not have any explicit provision for Judicial Review. In India also, the powers of Judicial Review are implied. The main issue is whether constitutional amendments can be held as unconstitutional. In the Kesavananda Bharati vs State of Kerala case regarding the validity of the 24th Constitutional amendment, the Supreme Court held that Parliament can amend any constitutional provision subject to retaining the basic structure of the constitution.

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 1 Introduction To Corporate Finance students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 1 Introduction To Corporate Finance

→ The term finance is related to money and money management

→ Finance = Inflow of Money + Outflow of Money

→ Corporate finance deals with the raising and using of finance by a corporation.
It also includes:

• Financial Planning
• Study of capital market, money market and share market
• Capital Formation
• Foreign capital

→ Corporate Finance is based on two decisions:

• Financing Decision
• Investment Decision

→ Capital Requirement is the funds required to start or run the business. Following points are to be taken into consideration:

• Draft a financial plan
• Volume of capital required

Capital Required :

1. Fixed Capital
2. Working Capital

Fixed Capital:

• Investment in fixed assets
• Used for longer period of time

Working Capital

• Day-to-day transactions
• Used for short period of time

→ Capital Structure is the mix of securities
Owned Capital + Borrowed Capital = Capital Structure

→ Capital Structure is the mix of securities
Owned Capital + Borrowed Capital Capital Structure

→ Capital Structure is composed of:
(a) Owned Funds = Share Capital + Free Reserves and Surplus
(b) Borrowed Funds = Debentures + Bank Loan + Long Term Loan

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 8 Social Change students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 8 Social Change

→ All human societies and their cultures are dynamic and undergo continuous change.

→ Change is an integral part of human society. It may be cyclical.

→ The nature of change and the direction of change varies from one society to another, but change is inevitable.

→ Changes might be slow or rapid; the consequences of change may be constructive/positive or destructive/negative.

→ Changes proceed from one stage to another in a single direction known as linear change or changes can take place in several directions known as multi-linear change.

→ The view of looking at society from the point of view of structures and functions is called structural functionalism.

→ The term social change refers to changes that take place in the structure and functioning of social Institution.

Characteristics of Social Changes:

• University
• Continuous process.
• Temporal
• Interactional chain reaction
• Neutrality
• Short-term and Long-term change
• Planned or Unplanned change

Factors responsible for Social Changes:

• Social change is a result of the interaction of multiple factors.
• No single factor is responsible for the change in society.

Factors responsible for Social Changes:

• Physical factor
• Biological factor
• Socio-cultural factor
• Economic factor
• Technological factor
• Educational factor

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 7 Social Stratification students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 7 Social Stratification

→ Social stratification uses the division of society into strata based on social position or class.

→ Sociologists use the concept of social stratification to refer to a system by which a society ranks categories of people in a hierarchy.

→ One has to distinguish between social differentiation or division and social stratification.

→ Social differentiation involves the formation of horizontal social divisions whereas social stratification involves vertical ranking of social strata.

Characteristics of Social Stratification:

• It is social
• Persists over generations
• Universal but variable
• Involves inequality
• Consequential

Type of Social Stratification:

1. Closed Stratification
2. Open Stratification

Closed Stratification
Caste System:

1. Segmental division of society
2. Endogamv
3. Hierarchy
4. Restriction on feeding and social intercourse
5. Differential Civil and religious privileges and disabilities
6. Lack of unrestricted choice of occupation

Open Stratification

Class:

• Wealth and Income
  Occupation
• Education
• Prestige

Gender Stratification

• Refers to the unequal distribution of wealth power and privilege between two sexes.
  Social Mobility
• Refers to change in the position of an individual or a group of individuals from one status to another.

Types of Social Mobility:

1. Horizontal Mobility
2. Vertical Mobility
3. intergenerational Mobility
4. Intragenerational Mobility

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 6 Socialization students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 6 Socialization

→ Socialization refers to the lifelong social experience by which human beings are transformed into social beings.

→ Socialization is a process whereby an individual develops one’s personality and becomes a functioning member of society.

→ Hobbs and Blank: ‘Socialization transform the biological organism into a social being’.

→ Socialization transforms the individual self into a social self.

Socialization:

• A process of learning various form of behaviour acceptable in a particular culture
• An ongoing process of continuous learning
• A process through which an individual gradually becomes member of the society.

Types of Socialization:

1. Primary Socialization: The learning which happens in the early years.
2. Secondary Socialization: The learning which extends the entire life of a person

Process of Socialization:
George Herbert Mead has elaborated on the process of building social self. According to Mead formation of self occurs in three distinct stages.

Process of Socialization

1. Stage 1: Imitation
2. Stage 2 : Play Stage
3. Stage 3 : Game Stage

Agencies of Socialization:
The child gradually becomes a member of society by participating in different social groups and networks which can be termed as agencies of socialization.

Agencies of Socialization:

• Family
• Peer groups
• Schools
• Mass Media
• Neighborhood
• Workplace

Re-socialization:

• The individual needs to adapt and cope with new situations and environment sometimes by learning new things or sometimes even by unlearning. This process of unlearning old norms, roles, values and behavioural patterns and learning new patterns is called re-socialization.
• A prison sentence, is a good example, which not only leads to rehabilitation of an individual’s behaviour but also makes them accommodate the new norms.
• Severity of re-socialization depends on the context in which it is carried out.

Total Institution:

• Erving Goffman is credited for having popularized the term ‘total institution’, closely associated with re-socialization.
• Examples of Total Institutions are prisons, military camps, mental health facilities, and private boarding schools.
• Re-socialization is often a deliberate and an intensely social process.

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 5 Culture students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 5 Culture

→ The term culture refers to the way of life of a member of various societies or groups. Culture is that complex whole that includes knowledge, beliefs, values, morals, law, customs, and any other capabilities and habits acquired by man as a member of society.

Types of Culture

1. Material Culture: Consists of man-made objects which are concrete and tangible in nature.
2. Non-Material Culture: Refers to the ideas created by human beings which are abstract and intangible.

Classification of Culture:

1. High Culture
2. Folk Culture
3. Mass Culture
4. Popular Culture
5. Subculture

Components of Culture:

1. Symbols and Signs
2. Language
3. Knowledge
4. Values and Beliefs
5. Norms

Characteristics of Culture:

• Culture is acquired
• Culture is abstract
• Culture is shared
• Culture is man-made
• Culture is idealistic
• Culture is transmitted among members of society
• Culture is continuously changing
• Culture varies from society to society
• Culture is an integrated system
• Language is the chief vehicle of culture

→ Participating in culture can benefit individuals in many different ways. Culture helps build social solidarity and cohesion. It leads to improved learning and valuable skills for the future.

→ Ethnocentrism means treating one’s own culture as superior and every culture displays a sense of ethnocentrism. Ethnocentrism has positive as well as negative effects.

→ Cultural hybridization refers to the ways in which parts of one culture get recombined with the cultures of another. It is a process where two originally distinct cultures come together and create something new and exciting.

→ Glocalisation refers to global processes interacting with the local processes.

By going through these Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 7 Consumer Protection students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 7 Consumer Protection

→ Lobby: A group of persons who try to influence legislators to vote in a certain way.

→ Adulterated product: Product that becomes impure after the addition of inferior materials. Consumption of such products may affect health adversely.

→ Spurious goods: Goods resembling real or original but are not genuine or real. Consumption of such goods may lead to harmful effects on health.

→ Redressal forum: Court or tribunal having the power to decide or give justice to the aggrieved party to the consumer disputes.

→ Compensation: Something, especially money given by the person responsible for a fault to the person to whom damage or loss is caused.

→ Misleading advertising: Advertising of the products or services which misleads and deceives the people. Unscrupulous traders or producers deceive the consumers through misleading advertising.

→ Rational decision: Decision in accordance with the principle of logic or reason.

→ Amendment: An alteration of or addition made to any Act after it is passed by the legislative body say Parliament of India.

→ Consumer disputes: Disputes between the consumer and the trader in respect to the product purchased and related issues.

→ Jurisdiction: The official power to make legal decisions and judgements about something or the . limits within which a legal authority can exercise its power.

→ Appellate: A court of law or higher court where decisions given by the lower court is challenged by the aggrieved party; an application made for this purpose is termed as “appeal”.

→ Exploitation: Taking advantage of especially a person for one’s own benefit or profit.

→ guasi-judicial: Having a partly judicial character by possession of the right to hold hearings on and conduct investigations into dispute claims and alleged violation of rules and regulations and to make decisions in the general manner of courts.

→ Public affairs: Public relations efforts of a firm that are associated with government agencies, mass media and public interest and pressure groups.

Introduction-

The survival and success of a business organisation depends upon the customers. They are the backbone of economy of any country as whole economy revolves around them. All the manufacturing and production activities are carried out in anticipation of demand and also to give maximum satisfaction to the consumers. In today’s competitive market, the consumer is regarded as the ‘King of Market’. Even today the exploitation of the consumers by the traders and manufacturers in the form of adulteration, false weighing and measurement, price rise, artificial scarcity, black marketing, misleading advertisement cannot be denied. Therefore, every consumer must have adequate knowledge of product and services in respect of their quality, quantity, price, standard, etc. to choose right product or service.

Meaning and Definition of Consumer-

Meaning: The word ‘consumer’ is derived from the Latin word ‘consumere’ which means ‘to eat or drink’. Accordingly, consumer is one who consumes or uses any product or service available to him either from nature or through market. For instance, if a person purchases bananas to eat, or uses railway services he is called consumer. If he purchases 10 dozens of bananas to sell them at higher prices, then he is called seller and not consumer.

Need and Importance of Consumer Protection-

• Need of participation of consumers: Many a time it is noticed that most of the companies | take decisions which affect the consumers’ interest without consulting them.
• Lack of information: On account of vast distance between manufacturer and consumer, it is not easy to establish direct contact between them. It is also very difficult to get correct and reliable information about the products they want to buy. In both the cases consumers’ exploitation cannot be denied.
• Ignorance of consumers: In India, most of the consumers are ignorant about their rights, market conditions, price levels, product details, etc. Many a time consumers are being cheated.
• Unorganised consumers: The consumers are widespread, scattered and unorganised. They are not united. Hence, they are easily exploited by the producers and sellers. An individual or a single consumer cannot fight against united and powerful manufacturers or sellers.
• Spurious Goods: Some traders imitiate (duplicate) the popular brand names and cheat the consumers by supplying them duplicate or defective goods. Consumers find it difficult to recognise genuine and duplicate products. It is necessary to protect them by ensuring compliances and safety standards.
• Misleading Advertisement: Most of the traders make false claims and exaggerate the facts but do not disclose the drawbacks of the products in the advertisements. Most of the consumers are misled by the advertisement and do not know the real and true quality of the products.
• Malpractices of businessmen: To earn and make more money many unscrupulous traders adopt fraudulent, unethical and monopolistic trade practices. This leads to exploitation of consumers. Measures must be taken to protect the consumers.
• Trusteeship: According to Gandhian philosophy, businessmen are the trustees of the society’s wealth. So businessmen should not misuse the society’s wealth. They should use the. wealth of the society for the benefits of the people.

Rights of Consumer-

The President of USA, J. E Kennedy declared certain rights of the consumers on 15th March, 1962, therefore it is observed as ‘World Consumer Rights Day.’

The rights of consumer are explained as follows:

1) Right to Safety: The right to safety means the right to be protected against the products, production processes and service which are hazardous to consumer’s life, property or health.

2) Right to Information: According to this right, consumers should get adequate information about all aspects of goods and services like price, name of manufacturer, contents used, batch number, date of manufacture, expiry date, safety instructions, etc. It helps consumers to select right products or services.

3) Right to Choose: As per this right, consumer should be given full liberty to select an article as per his requirements, liking, financial ability, etc. According to this right, seller cannot force the buyer to purchase a particular product or services.

4) Right to be Heard: This right states that the consumers have right to lodge their complaint .to consumer forum. Consumers can also give suggestions to manufacturers or traders on certain matter like quality, quantity, price, packaging, etc. The consumers can also file online complaints through portal or mobile applications.

5) Right to Consumer Education: This right has made it clear that every consumer has right to know about consumer rights and solutions to their problems. This is to create awareness among the consumers to protect themselves from the exploitation of unscrupulous businessmen.

6) Right to Represent: The Consumer Protection Act, 2019 has given am opportunity to individual consumers and consumer groups to be represented by a person to represent consumers’ complaint before consumer forum.

7) Right to Redress: According to this right, every consumer has the right to receive a fair amount of compensation or get the article replaced or repaired free of cost for defective products and for poor services received from the manufacturer or dealer.

8) Right to Healthy Environment: According to this right all consumers have right to clean and healthy environment in present as well as in future. As per this right, consumer can demand actions against business organisations causing pollution. Businessmen and companies must take suitable measures to control pollution.

9) Right to protect against Unfair Business Practices: As per this right, the consumers have right to raise voice against unfair business practices adopted by any trader, e.g. using faulty weights and measures, hoarding products to create artificial scarcity, black marketing, profiteering, adulteration, charging high prices, selling goods after expiry dates, etc.

10) Right against Spurious Goods: This right is against the traders who sells goods which are health hazards, spurious (false or not genuine) and pose danger to life.

Responsibilities of Consumer:

• Consumer should use his rights: The consumers must be aware that they have many rights in respect to the products or services they have purchased. They can use their right if they are cheated or misled by advertisement or get faulty or defective articles.
• Cautious consumer: The consumer should be alert and cautious while dealing with trader. Before buying any product or service, he should make detail enquiry about the quality, quantity, utility, price, date of expiry, user manual, etc.
• Filing of complaint: If the consumer has any complaint about the products or services he has purchased, he should immediately approach the officer concerned and lodge complaint about the same. If consumers ignore the dishonest acts of the traders, it indirectly amounts to encourage unethical business practices.
• Quality conscious: The consumers should always buy quality products. They should never compromise on the quality of goods. They should always ensure about the quality symbols like ISI, AGMARK, Hallmark, etc. They indicate that the quality of goods is good.
• Beware from exaggerated advertisement: Many a time seller exaggerates the facts in their advertisements. It is the responsibility of the consumers to find out the truth of advertisement and then buy the products or services.
• Demand of Invoice and Guarantee, Warranty Card: After purchasing the products or services, consumers should always ask for or demand guarantee card, cash memo from the i seller or dealer. They should preserve these for future claim in case of any defects, inferior quality, etc.
• Pre-planned buying: The consumers should make proper planning before buying any product. He should make an estimate of products, j budget to spend, etc. He should also decide in advance from which place the buyer to buy the product. He should not buy any product in a hurry or without thought.
• Organised efforts: It is the responsibility j of the consumer to shoulder the responsibility to promote and protect the interest of his own and other consumers. He should join the group or organisation which is working for the welfare of j consumers.

Ways and Means of Consumer Protection-

1) Lok Adalat: Lok Adalat also referred as People’s Court is established by the government to settle disputes by compromise. The aggrieved party can directly lodge the complaint or grievances. Issues are discussed and judgement is given immediately. The order passed thereby is given statutory recognition. Railways, Insurance | companies, banks, etc. organise Lok Adalat regularly.

2) Public Interest Litigation (Janhit Yachika): Under this legal facility, any person can approach court of law in the interest of the public j or society and ask for justice. Its main objective is ) to provide legal remedy to unrepresented groups j of society. It can be directly filed in the High Court as well as in Supreme Court in some cases.

3) Redressal Forum: Under the Consumer Protection Act, 2019, consumer dispute redressal agencies have been established by the Government to protect the rights of consumers and to offer simple, speedy and inexpensive redressal for consumer complaints. These three tier quasi judicial consumer disputes redressal agencies are set up at District, State and National level.

4) Awareness Programmes: The Government of India has adopted various publicity measures such as use of journals, brochures, posters, observation of World (International) Consumer Rights Day on 15th March and National Consumer Day on 24th December every year. Various consumer related programmes are also telecast on various TV channels and social media and broadcasted on All India Radio and FM channels.

5) Consumer Organisations: Many consumer organisations such as Consumer Guidance Society of India, Grahak Panchayat, Grahak Shakti, Consumers’ Association, etc., are active throughout India to fight for consumers’ rights through protest, campaigning, lobbying, etc. It is now required to strengthen consumer movement throughout the country.

6) Consumer Welfare Fund (CWF): This fund is created by the Department of Consumer Affairs for providing financial help to voluntary consumer movement specially in rural areas. This financial assistance is used for consumer education, complaint handling, counselling, guidance, etc.

7) Legislative measures: The Government of India has passed several Acts such as Sales of Goods, Act, 1930; Essential Commodities Act, 1955; Standards of Weights and Measures Act, 1956; Bureau of Indian Standards Act, 1969; Food Safety and Standard Act, 2006 and National Food Security Act, 2013, etc. to protect the interest of consumers.

However, these laws could not protect the consumers as such and therefore the Government of India has passed a powerful act known as Consumer Protection Act, 2019 to protect the interest of consumers.

Consumer Protection Act, 2019-

The Consumer Protection Act was passed by the Parliament on 24th December, 1986 to provide for expeditious and inexpensive settlement of consumer disputes. In 2019, the Ministry of Law and Justice has proposed new act as ‘Consumer Protection Act, 2019’ which got the President’s assent on 9th August 2019. This Act, provided for the establishment of three-tier quasi-judicial consumer dispute redressed agencies known as District Commission, State Commission and National Commission at District Level, State Level and National Level respectively. National Commission also acts as an Apex body at the central level. This act provides and covers all the complaints in respect to goods, services and unfair business practices.

1) District Commission: A consumer dispute redressal commission called the District Commi¬ssion is established by the State Government in each district to entertain complaints where the value of the goods or services paid as consideration does not exceed ₹ 1 crore. Each district commission shall consist of the President who is sitting or retired as a district Judge and who is not less than 35 years. The members will hold office for a term of 5 years or up to the age of 65 years whichever is earlier. Territorial jurisdiction of district commission is entire district in which it is established. Any person not satisfied with the order of District Commission can appeal against such order to the State Commission within a period of 45 days from the date of such order.

2) State Commission: A Consumer Dispute Redressal Commission called the State Commission is established by the State Government in each state to entertain complaints where the value of the goods or services paid as consideration, exceeds ₹ 1 crore but does not exceed ₹10 crore. Each State Commission shall consist of President who is sitting or retired Judge of High Court and not less than 4 members. The members will hold office for a term of 5 years or up to the age of 67 years whichever is earlier. It can entertain original cases as well as appeals against the order of District Commission which are within the territorial jurisdiction of the entire state in which it is established. Any person not satisfied with the order of State Commission can appeal against such order to the National Commission within a period of 30 days from the date of such order.

3) National Commission: A Consumer Dispute Redressal Commission at the national level established by the Central Government by notification is referred to as National Commission. It entertains complaints where the value of the goods or services paid as consideration exceeds ₹ 10 crore. National Commission consists of President who is sitting or retired as judge of the Supreme Court and not less than 4 members. The members will hold office for a term of 5 years or up to the age prescribed whichever is earlier. It entertains original cases and appeals against the order of State Commission which are within the territorial jurisdiction of the entire nation. Any person not satisfied with the order passed by the National Commission may appeal against such order to the Supreme Court within a period of 30 days from the date of such order.

Role of Consumer Organisations and NGOs-

Non-Government Organisations (NGOs) are non-profit and non-political organisation which aim at promoting the welfare of the people.
The Role of consumer organisation and NGOs in Consumer Protection and Education:

• To arrange and organise campaigns and different programmes on the topics of consumers to create social awareness.
• To arrange training programmes for consumers to make them aware of their rights and different modes of redressal of their complaints and grievances.
• To publish journals, periodicals to make consumers understand about various consumer related development.
• To provide free legal advice to the members on the issues of consumer’s interest and help them to put up grievances before appropriate authority.
• To communicate with the businessmen, Chambers of Commerce and Industry for ensuring a better deal for consumers.
• To file Janahit Yachika (Public interest litigation) on vital consumers issues like ban on sale of products injurious to public health.

The following are the examples of NGOs: Consumer Guidance Society of India (CGSI), Voluntary Organisation in Interest of Consumer Education (VOICE), Consumer Education and Research Centre (CERC), Consumers Association of India (CAI), Mumbai Grahak Panchayat (MGP), Grahak Shakti (GS).