Category: Maharashtra State Board Notes

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 11th Notes Chapter 4 Forms of Business Organisation – I students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 4 Forms of Business Organisation – I

Meaning Private Sector Organization-

Private Sector Organization
Meaning: The private sector is the part of the economy that is run by individuals or a group of Individuals to earn profit.

Forms of Private Sector Organization-

1. Sole Proprietorship
2. Partnership
3. Joint Hindu Family
4. Co-operative Society
5. Joint Stock Company

Meaning of Sole Trading Concern / STC Sole Proprietorship-

According to Prof. J. Hansen, “Sometimes known as one man business, it is a type of business unit where one person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the risk of ownership”.

According to Prof. James. Lundy, “The sole proprietorship is an informal type of business owned by one person”.

Features of Sole Trading Concern-

• Suitable for some Special Business
• Unlimited Liability
• No Sharing of Profits and Risks
• Business Secrecy
• Local Market Operations
• Individual Ownership
• No separate legal status
• Direct Contacts with Customers and Employees
• Self-employment
• Freedom in Selection of Business
• Minimum Government Regulations

Merits of Sole Trading Concern-

• Easy formation
• Quick decisions.
• Maximum Secrecy
• Direct Motivation
• Efficiency
• Lower cost
• Flexibility

Demerits of Sole Trading Concern-

• Limited Capital
• Limited Managerial Skill
• Unlimited Liability
• Lack of Stability
• Lack of Specialization
• Not suitable for large scale operation

Meaning of Partnership Firm-

(Section 4 of Indian Partnership Act, 1932 defines partnership as -) “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or anyone of them acting for all”.

(Prof. L. H. Haney defines partnership as -) “Partnership is the relation existing between persons competent to make contracts, who have agreed to carry on a lawful business in common with a view to private gain”.

Features of Partnership Firm-

• Lawful Business
• Agreement
• Number of Partners
• Dissolution
• Sharing of Profits and Losses
• Termination of Partner
• Joint Ownership
• Registration
• Joint Management
• Unlimited Liabi1ity
• Principal and Agent
• Restriction on Transfer of Interest

Merits of partnership Firm-

1. Easy formation
2. Capital
3. Business secrecy
4. Continued existence
5. Flexibility of operation
6. Decision making
7. Effort- Reward Relationships
8. Goodwill
9. Dissolution

Demerits of Partnership firm-

• Non-transferability of Interest
• Limited Capital
• Absence of Legal Status
• Problem of Continuity
• Risk of Implied Authority
• Limitations on Number of Partners
• Disputes
• Difficulty in Admission of Partner
• Unlimited Liability
• Problems of Secrecy

Types of Partners-

1. Active partner
2. Dormant partner
3. Nominal partner
4. Secret partner
5. Minor as partner
6. Partner in profits only
7. Sub-partner
8. Partner with limited liability
9. Quasi-partner

Types of Partnership Firms-

1. General Partnership Firms (Under Indian Partnership Act, 1932)

• Partnership at will
• Partiership for particular period
• Partnrship for particular venture

2. Limited Liability Partnership (Under Limited Liability, Partnership Act, 2008)

Joint Hindu Family Business-

(1) Mitakshara : According to this school, only male member of the family can inherit the family business. Hence the sons, grandsons and great grandsons become joint owners of the family property. A son gets equal rights along with his father in the ancestral property. He has a right to ask for a division of the family property.

(2) Dayabhagya : According to this school both male and female member will be co-parceners in the Hindu-undivided fami1y. e.g. after death of husband his property and business passes to his wife or other successor.

Features of Joint Hindu Family Business-

• Exists only in India
• Formation
• Membership
• Joint Ownership
• Good Credit Standing
• Management
• Profit Sharing

Merits of Joint Hindu Family Business (JHFB)-

• Easy formation
• Protection of Co.parceners Interest
• Quick and Prompt Decision
• On the job training
• Co-parcener’s liability

Demerits of Joint Hindu Family Business (JHFB)-

• Unlimited Liability of Karta
• Limited Financial and Managerial Resources
• No separate legal status
• Partition of business
• No direct relation between effort and rewards

Co operative Society-

The International Labour Organization:
‘A Co-operative Organization is an association of persons, usually of limited means, who have voluntarily joined together to achieve a common economic end through the formation of a democratically controlled organization, making equitable distributions to the capital required and accepting a fair share of risk and benefits of the undertaking”.

“Indian Co-operative Society’s Act, 1912”, Co•operative Society is a sociéty which has its objectives for the promotion of economic interest of its members in accordance with co operative principles”.

Features of Co-operative Society-

• Limited Liability
• Management
• Service Motive
• Surplus Profit
• Separate Legal
• Equal Voting Rights
• Number of Members
• Democratic Principle
• Voluntary Association rand Open Membership
• Registration
• State Support

Merits of Cooperative Society-

1. Easy Formation
2. Tax Concession
3. Open Membership
4. Stability
5. Self Financing and Charity
6. Less Operating Expenses
7. Limited Liability
8. Democratic Management
9. Supply of Goods at Cheaper Rate

Demerits of Cooperative Society-

• Limited Capital
• Inefficient Management
• Lack of public confidence
• Limited scope for expansion
• Lack of motivation

Types of Cooperative Societies-

1. Consumers Co-operative Societies
2. Producer’s Co-operatives
3. Marketing Co-operative
4. Co-operative farming societies
5. Housing Co-operatives
6. Credit Co-operatives

Producer’s Co-operatives-

• industrial Service Co-operatives
• Manufacturing Co-operatives

Joint Stock Company-

Definition of Joint Stock Company:
Prof. L. H. Haney,
“A Joint Stock Company is a voluntary association of individuals for profit having capital divided into transferable shares, the ownership of which is the condition on membership”.

Chief Justice Marshal,
“A company is a person, artificial invisible intangible and existing only in the eyes of law. Being a more creature of law it possesses only those properties which the charter of its creation confers upon it, either expressly or as incidental to its very existence”.

The Companies Act 2013, Sec 2(20)-
“A company incorporated under the Companies Act 2013 or any previous company law”.

Features of Joint Stock Company-

• Common Seal
• Registration
• Artificial Legal Person
• Membership
• Perpetual Succession
• Separation of Ownership and
• Registered Office
• Transferability of Shares
• Voluntary Association
• Limited Liability
• Separate Legal Status

Merits of Joint Stock Company-

• Transferability of Shares
• Relief in Taxation
• More Scope for Expansion
• Public Confidence
• Limited Liability
• Expert Services
• Democratic Management
• Perpetual Succession
• Professional Management
• Large Amount of Capital

Demerits of Joint Stock Company-

• Rigid formation
• Lack of secrecy
• No personal contact
• Delay in decision making process
• High cost of management
• Reckless speculation

Types of companies-

Word Meaning:

solely – only; proprietor – owner; legal status – someone with regard to law; eyes of law – from view of law; rigid – fixed; distinction – differences; expert – good knowledge in a particular area; insanity – mental imbalance; insolvency – financial loss; evolved – to develop; proprietary concern – sole trading business; lawful – legally; collectively – as a whole; outcome – result; advisable – useful; forbidden – not permitted; pay off – payment; incurred – to arise; consent – permission; proportions – share; goodwill – established reputation; fraudulent – illegal; secrecy – not to disclose anyone; confidential – to keep secret of something; flexibility – to change easily; diversify – to expand; ethical – principle; efficiency – competent; continuity – to run for long period; dissolution – to end; disputes – arguments; object – to disagree; undue – unnecessary; restricts – to obstruct; dormant – inactive; quasi – not fully; rendered – to provide; sleeping – to be inactive; bind – to tie up; nominal – in name of; void – invalid; derived – to obtain; at will – own wish; venture – project; inherit – to receive; ancestral – belonging from ancestor; successor – a person who gets the authority from another person; descended – to go down; virtue – by behaviour; custodian – caretaker; assures – to convince; consult – to seek advice; utmost – maximum; tactics – method; manipulative – to exploit ; practices – to exercise/to use; empathizing – to understand; transparent – to be clear; exploitation – to misuse; integral – essential; democratically – with regard to laws of democracy; equitable – equally; discrimination – to differentiate; honorary – unpaid; concessions – discount; privileges – advantages; exemption – state of being free from duty; amendment – changes; charity – helping others in term of cash or material; interference – to come in between; remunerative – at good price; centralized – under one roof; eliminate – to remove; pool – to bring together; exorbitant – to much high/extremely high; drastic – major/extreme; intangible – can’t be seen or touched physically; confers – to present; charter – authorised; incidental – happening; existence – to come into survival; entity – an independent body (organisation); engraved – imprint; seal – a symbol; affixed – to fix on something; perpetual successions – never ending; comparatively – to compare something with; legal advisers – a person who gives legal advices; consultants – a person who gives expert advice in a particular area; stable – fixed; complicated – difficult; time consuming – taking too much time; undue – unnecessary; appreciated – to value; unscrupulous – corrupt/dishonest; reckless – careless; fluctuation – changes/ alteration; adversely – harmfully/not favourable; ban – to restrict/to stop; in lieu of – in place of/replace.

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 1 Secretary students can recall all the concepts quickly.

Maharashtra State Board Class 11 Secretarial Practice Notes Chapter 1 Secretary

Origin of Secretary

Meaning and Definition

1. Oxford Dictionary:
‘A person whose work is to write for others, especially one who is employed to conduct correspondence, keep records and to transact various other businesses for another person or for a society, corporation or public body.’

2. Companies Act, 1980: “A person who is a member of Institute of Company Secretaries of India.”

Features of Secretary:

• Individual – Only an individual can be as a Secretary
• Duties – Perform routine and administrative duties O Day to day duties
  Ensure legal compliances
• Qualification – Prescribed qualification according to Companies Act, 2013
• Appointment – Can be appointed by individuals, professionals, society corporation, etc.
• Paid Employee – Paid either by salary or paid an honorarium.
• Confidential Officer – Acts as a custodian of secret and confidential information of the organization.
• Representative – Personal secretaries – represent their employers.
  Institutional secretaries who is appointed by societies, companies, government departments – represent their organizations.
• Qualities – o Concentration, intelligence, tact, loyalty, co-operation, courtesy, etc.

Importance of a Secretary:

1. Expert advice and guidance –

• opinion of secretary valuable.
• advices the superiors in the matter of policy decisions.
• guides to the management for business growth.

2. Administrator-

• routine office administration
• office management, documentation of important issues
• executive duties : like assisting policy formulation, preparation of plans, supervision on execution of plans

3. Custodian of secret information-

• access to confidential and crucial information related to the organization.
• making and executing important decisions
• guards the secrets of the organization as ‘confidential officer’.

4. Correspondent –

• responsible for inward and outward correspondence.
• correspondence with members, directors, banks, insurance companies, etc.

5. Legal compliance officer –

• ensure proper and timely legal compliances.
• perform various statutory duties.
• file returns, documents with proper authorities within the stipulated time.

6. Conducting meetings-

• formalities required to be undertaken before, during and after the meeting.
• includes preparation of agenda. sending notices, preparing minutes etc.

7. Link between management and staff –
link between management and staff. helping in effective communication.

8. Fulfillment of Secretarial Standards and Secretarial Audit-
to check whether the company is adhering to legal and procedural requirements.

Types of Secretary:

1. Personal Secretary
2. Institutional Secretary

Institutional Secretary-

• Secretary of a Non – profit association
• Secretary of a Co-operative
• Secretary of a Joint Stock company
• Secretary of a Government Department
• Other Body Corporates

Personal Secretary-

1. Appointment
2. Qualifications

1. Appointment –
Individuals appoint personal
secretary to look after other or daily routine work.
E.g. → (1) Doctors (2) Lawyers (3) Engineers (4) CA (5) Actors (6) Politicians, etc.

Qualifications-

• No specific qualifications
• Depends on the requirement of employer’s profession

Institutional Secretary-

1. Secretary of a Non – Profit Association
Example: Secretary — Rotary club — Lions club. etc.

Appointment:
may be a full time or part time person working on salary basis or on honorarium basis.

Qualification:

• no prescribed qualification
• should be acquainted with the objects and basic functioning of the organization.

2. Secretary of a Co operative Society
Example:
3ecretary – Co-op. Bank – Co-op. Housing ociety. etc.

Appointment:

• one member of managing committee is appointed as a Secretary.
• works on honorary basis.
• for large scale co-operative organisation; he/she may be appointed as a
  full time employee on salary basis.

Qualification:

• no specific qualification.
• good knowledge of the Co-operative Societies Act with at least
  graduate qualification.

3. Secretary of a Joint
Stock Company
Example:
Reliance Industries Ltd, Tata Motors Ltd, etc.

Appointment:
Company Secretary is appointed and works under the control of Board of Directors.

Qualification: As per Section 2O3 of Companies Act 2013, Company Secretary must be a member of the Institute of Company Secretaries of India (ICSI).

4. Secretary of Government Department
Example:
Finance Secretary, Defence Secretary, etc.

Appointment:
Acts as an administrative head of a Ministry or Department for Government of India or State government.

Qualification:

• requires graduation degree.
• should have passed the Civil Services Examination and should be an TAS.

Functions of a Secretary-

1. Correspondence

• to look after inward and outward mail.
• to reply to inquiries from outsiders, government department.
• to look after the various records of the organization.

2. Office management

• to supervise and control the staff.
• to look after smooth functioning of the company.
• to look after training, promotion and transfer of the office staff.

3. Reception function

• to attend to telephone calls and visitors.
• to attend to inquiries, fixing appointments, etc.

4. Financial functions

• to handle banking transactions and maintain books of accounts.
• to keep watch on receipts and payments.
• to provide information to employer, management, banks and Govt.

5. Arrange meetings

• between employer and other parties.
• to arrange general meetings and board meetings as per Act.
• to draft notices, agenda and minutes of the meeting.

6. Statutory functions
to comply the provisions of the Companies Act, Income Tax Act, Stamp Act, etc.

7. Assistance in formulating policies

• to collect statistical data and information.
• to assist the management in formulating policies

8. Providing information
to provide Information related to various departments to management, banks, government departments, shareholders and employees.

9. Administrative functions

• to assist in appointing employees,
• to distribute office work, to supervise, to train and to promote.
• to maintain all statutory books and keep under proper custody.

Qualities of a Secretary-

1. Accuracy
2. Adaptability
3. Co-operativeness
4. Courtesy
5. Initiative
6. Leadership
7. Loyalty
8. Orderliness
9. Pleasing personality
10. Knowledge seeker
11. Punctuality
12. Sound judgement
13. Tactfulness

Word Meaning:

emerged – to come out / to rise up; assist – to help someone; employer – one who keep the worker against remuneration (salary, wages); employees- one who works for someone against remuneration (salary or wages) / a person who works for somebody for salary; compliance – to follow rules / to abide; prescribed – to advice / to suggest; honorarium- payment made to professionals for their services; custodian – a person who is officially charged for something; personal- one’s own property / belonging; institutional – large organization; concentration- to focus on some work; courtesy – polite behavior towards other people; orderliness – neat and tidy / proper placement; seeker – needy person; able- guidance – valuable suggestion; executive – person at top level; formulation – creation of a plan or policy; stipulated – fixed / desired time; agenda – points to be discussed in meeting; minutes – written record of points discussed in meeting; co-ordinate – to work together; adhering – to follow; procedural – formal way to do something; acquainted – habitual; vital- important; relevant – important / needed; promotion – to lift up; voluntarily – by one’s own wish; accomplish – to achieve / to get; pleasing – good looking personality; implies – without saying directly; mannerism – behave respectfully, statutory – compulsory; appropriate – proper; effectiveness – productiveness; determined – firmly / fixed; perks – additional benefits.