Bhagya

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 9 Depository System students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 9 Depository System

Introduction:
→ Joint-stock companies raise finance by issuing shares and debentures.

→ Securities can be held in two modes:

• Physical or Paper Form
• Electronic/ Digital/Dematerialized Form

→ A new system called “depository system” has been established to

• Field securities of an investor in an electronic form
• Eliminate the risk of forgery and mutilation

→ Depository system exists in all developed countries.

Terms and Constituents related to Depository System-

→ Depository System which was introduced in India by passing The Depository Act 1996.

→  Constituents of Dlepository System :

1. The Depository
2. The Depository Participant(DP)
3. The Beneficial Owner (BO)
4. The Issuer Company

→ Depository contacts the customer through depository participant.

→ Depository participant is the representative of the depository.

→ An investor is known as beneficial owner.

→ Companies which issue any kind of security are known as ‘Issuer’ in the depository system.

→ Issuer Company must register with the Depository.

→ Dematerialization is the process in which share certificates are converted into electronic form.

→ Rematerialization is the process by which shares in electronic form are reconverted into physical form.

→ ISIN is a unique code that is used to identify securities.

Functioning of Depository System:

→ The investor has to open a demat account when he wants to dematerialize the share.

→ The investor intending to dematerialize his securities send a duly filled in and signed. Demat Request Form in triplicate along with scrip certificate to Depository Participant.

→ Depositories existing in India:

• NSDL – National Security Depository Limited -1996
• CDSL – Central Depository Services Limited – 1999

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 8 Correspondence with Depositors students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 8 Correspondence with Depositors

Introduction:

→ Deposit is a short-term source of finance for a company.

→ It is an unsecured source of borrowed funds to the company.

→ It is used to satisfy the working capital needs of a company.

→ A public company having a net worth of not less than 100 crore rupees OR a turnover of not less than 500 crore rupees AND which has obtained the prior consent of shareholders through special resolution, can raise public deposit.

→ A private company can accept deposits from its members or directors or relative directors not more than 100 percent of its aggregate of paid share capital and free reserve.

→ Public companies can raise deposits maximum up to 25 percent of its aggregate of paid share capital and free reserve.

→ Government companies can raise a maximum of 35 percent deposits of their aggregate of paid share capital and free reserve.

→ The company cannot accept or renew deposits on demand.

→ Depositors are the creditors of the company.

→ The company can accept deposits for a minimum period of 6 months and a maximum period of 36 months.

→ The company is liable to pay regular interest at a fixed rate and repay the principal amount as on maturity.

→ Default in repayment can result in punishment in the form of a fine and/or imprisonment.

Points to be remembered while corresponding with depositors:

→ While writing letters to the depositors, the secretary should follow legal provisions.

→ He should communicate with courtesy.

→ His letter should be brief and prompt.

→ Correspondence with the depositors should increase the goodwill of the company.

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 7 Correspondence with Debentureholders students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 7 Correspondence with Debentureholders

Introduction-
Joint Stock Company requires huge amount of capital for business. It is raised through:

(i) Issuing Shares

• Shares are issued at the beginning.
• Share Capital is the owned capital.

(ii) Issuing Debentures

• Debentures are issued at the later stage.
• It is an acknowledgment of debt.
• Debenture Capital is the borrowed capital.
• It is a safe and secured capital.
• Debenture holder is the creditor of the company.
• Debentures are issued for a specific period carrying fixed rate of interest.

→ In the beginning, shares are issued and debentures are issued at a later stage.

→ Joint stock companies raise its borrowed capital by issuing debentures.

→ Debenture is an acknowledgement of debt.

Points to be considered while corresponding with Debenture Holders-
While writing letters to the debenture holder, the following points should be considered.

• Debenture holders are company’s creditors, so due respect should be given in correspondence which means there should be courtesy in writing.
• Prompt reply should be given to the incoming letters of debenture holders.
• Secretary should be aware and follow the legal provisions of Companies Act, 2013 related to the issue of debentures, conversion and repayment of interest.
• Correspondence should be transparent. Company should not hide any adverse information about credit rating.
• It should be concise but complete.
• Information should be updated and precise.
• Confidential information about the company should not be disclosed. Secrecy has to be maintained.
• A good image of the company should be maintained with the debenture holders.

Circumstances for secretarial correspondence with Debenture Holders-

Correspondence means ‘communication in writing’ i.e. writing a letter.
Secretary has to correspond with debenture holders in the following circumstances:

• About allotment of debentures.
• Intimation about payment of interest through:
  • Interest Warrant
  • Electronic Payment of Interest
• For conversion of debenture into equity shares.
• For redemption of debentures.

Specimen Letters-

Debenture Allotment Letter:

• Company allots debentures to the applicant i.e. debenture holder.
• Allotment Letter is preserved by the debenture holder till he receives Debenture Certificate in exchange of this letter.
• Contains details of issue of debentures i.e. name of debenture holder, debentures issued, face value,
• types of debentures, rate of interest, etc.

Payment of Interest Letter:

• Interest is paid to the debenture holders through:
  • Interest Warrant
  • Electronically
• The letter contains details such as a number of debentures, distinctive numbers, the gross amount of interest payable, TDS deducted, the net amount of interest payable, etc.
• Board Resolution is required for the payment of interest on debentures.

Conversion of Debentures Letter:

• Debentures are converted into equity shares.
• Conversion of Debenture Letter is issued only when the company receives Letter of Option.
• After conversion, a share certificate will be issued.
• Approval of shareholders is necessary by passing a special resolution at Extra-Ordinary General Meeting.
• Only after receiving the shareholders’ approval, letter of conversion of debentures is sent to debenture holders.

Redemption of Debentures Letter.

• Debentures are redeemed after a specific period.
• Debenture Redemption Reserve Fund (DRRF) is created for the redemption of debentures.
• Debenture Redemption Form (DRF) is sent along with the letter.
• This letter informs that their debentures have become due for redemption.

By going through these Maharashtra State Board Class 11 Political Science Notes Chapter 8 Development Administration students can recall all the concepts quickly.

Maharashtra State Board Class 11 Political Science Notes Chapter 8 Development Administration

Introduction

In this chapter, we will study about the meaning, features and evolution of Development Administration. We will also study about the manner in which development administration is implemented in India. Development administration focuses on the socio-political and socio-economic development of the country. It’s emphasis is on projects, programmes and policies aimed at securing the objective of development.

Development Administration

Meaning : Development is a complex term which means improvement, growth or progress. When public administration studies “government in action for development” it becomes Development Administration. According to Edward Weidner, development administration “is the process of guiding an organisation toward the achievement of progressive political, economic and social objectives that are authoritatively determined in one manner or the other”.

An approach to have innovative planning towards growth is called Development Administration.
The need for this was felt due to limitations in the traditional approach to public administration, which covered areas such as,

• Organization of government machinery
• management of different tasks like leadership, planning, etc.
• personnel administration i.e., recruitment, training of personnel
• financial administration e.g., budget, audit, etc
• administrative law e.g., tribunals for dispute resolution.

The new approach to public administration and public policy focuses on socio-economic development, political modernization and adaptation of new technologies in administration.

Development Administration has two important aspects viz. –

• Administration of development – setting development goals and achieving them through the medium of administration.
• Development of administration — existing system has to be improved so as the achieve the goals.

Evolution Of Development Administration

After the Second World War, several Asian and African nations became independent. They did not want a government which merely carried out routine administration like law and order, external security, revenue, etc. These countries had heterogeneous societies, struggling economies and faced serious challenges like hunger, poverty and socio-economic inequality.

They needed planned and properly executed government action which would be holistic i.e., focusing on social change, political development and economic growth. The government was to become the instrument of development by taking up tasks like centralized economic planning, promotion of industrial growth, provision of social services and encouraging people’s participation, in governance. The concept of the Welfare State’ which had dominated the early part of the 20th century grew stronger. The State was expected to play a key role in the promotion of economic and social well-being of it’s citizens.

Features Of Development Administration

(i) Change oriented – Development administration seeks to re-orient towards development goals in the socio-economic and political sphere through transformation, innovation and growth. In India, after Independence, the two biggest challenges before the government were food scarcity and poverty and economic backwardness. Hence, the focus was on agriculture as well as on industrial and infrastructural development.

(ii) Output oriented – Development administration seeks to achieve certain outcomes on the basis of clear, quantitative norms of performance. This focus on targets, motivates the administration to produce the desired results, for e.g., pegging a target of 8 – 10% growth rate for the economy is a reasonable goal to be achieved.

(iii) Citizen participation – It is necessary that people actively participate in the development processes of planning, implementation and evaluation e.g., 73rd and 74th amendments are a landmark in the evolution of grassroot democratic institutions both in rural and urban areas in India.

(iv) Public commitment – The process of development is filled with challenges and barriers. Hence, the civil servants (bureaucracy) need to have a strong sense of involvement, commitment and concern to achieve the development objectives.

Development Administration In India

Post Independent India was struggling to rise from the ill-effects of colonial exploitation i.e., from poverty
and under development.
The goals of development in India were directed towards this objective.
These include –

• Modernisation of the Economy – The focus was on industrialisation, which would increase employment facilities as well national income.
• Land Reforms – This aimed to free up land which was concentrated in the hands of a few landholders (zamindars)
• Agriculture – The focus was to reduce rural poverty by developing agriculture. The use of machines, better fertilizers and pesticides, high yielding seeds and irrigation facilities would help to increase the agricultural production.
• Self-reliance – Although foreign aid was accepted by India for it’s industrial and infrastructural development, it did not want to be dependent on foreign capital for a long time.
• Socialist pattern of economy – India decided to adopt the socialist pattern of economy towards creating a Welfare State and reducing inequalities of wealth and income. The Planning Commission was created and 5 year plans were implemented.

Development Programmes In India

• For agriculture employment and rural development, programmes such as Community Development Programme (CDP-1952), Green Revolution (1966-67), Integrated Rural Development Programme (1980), JRY (1989), MGNREGA (2005).
• For poverty eradication – Twenty Point Programme (1975).
• For infrastructure – Command Area Development Programme (1975), Pradhan Mantri Gram Sadak Yojna (2000), JNNURM (2005)
• For social welfare – Midday meal scheme (1995), Swachh Bharat Abhiyan (2014), Udaan (2017)
• Aadhaar – a unique identification number created by the UIDAI.

Niti Aayog National Institution For Transforming India)

The Planning Commission was the apex planning body set up after Independence. India has adopted Five Year Plans which identified short-term and long-term goals of development in areas such as agriculture, irrigation, industrialization, infrastructure, social security, etc. In 1991, the New Economic Policy focused on economic liberalization. The Planning Commission has now been replaced by the NITI Aayog (established on 1st January 2015). The Prime Minister is the ex-officio chairman of NITI Aayog. Since India has moved from centralized planning to decentralized planning, this body proposes grassroots level planning from village and district levels to be harmonized with state-level planning and finally with national planning. There is a Governing Council comprising of the Chief Ministers of all 29 states and of Delhi and Puducherry and Lt. Governors of Union Territories. The Vice-Chairman is Rajiv Kumar and CEO is Amitabh Kant (as of 2019).

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