Business Environment and Law (BEL)

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Business Environment and Law (BEL)

Company Secretary (CS) Foundation Programme - Paper 1

BUSINESS (also known as an enterprise, a company, or a firm) is an organizational entity and legal entity made up of an association of people, be they natural, legal, or a mixture of both who share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific declared goals and are involved in the provision of goods and services to consumers. A business can also be described as an organization that provides goods and services for human needs.

Business Environment:

The combination of internal and external factors that influence a company's operating situation. The business environment can include factors such as: clients and suppliers; its competition and owners; improvements in technology; laws and government activities; and market, social and economic trends.

Business Law or Commercial Law :

Business Law or Commercial Law is the body of law which governs business and commerce and is often considered to be a branch of civil law and deals both with issues of private law and public law. Commercial law regulates corporate contracts, hiring practices, and the manufacture and sales of consumer goods.

As per new syllabus 2017, Business Law (commercial law) is covered under Company Secretary (CS) Foundation Programme in Paper 1- BUSINESS ENVIRONMENT AND LAW.

  1. Level of Knowledge: Basic Knowledge
  2. Objective of ICSI: To give orientation about different forms of organizations, functions in organizations, business strategies and environment, along with an exposure to elements of business laws.
  3. Mode of examination: Computer based MCQs.
  4. 100 Marks Paper:
Part A: Business Environment Part B: Business Law
40 marks 60 marks
Business Environment:

Introduction and Features; Concepts of Vision & Mission Statements; Types of Environment-Internal to the Enterprise (Value System, Management Structure and Nature, Human Resource, Company Image and Brand Value, Physical Assets, Facilities, Research & Development, Intangibles, Competitive Advantage), External to the Enterprise (Micro- Suppliers, Customers, Market Intermediaries; Macro-Demography, Natural, Legal & Political, Technological, Economy, Competition, Socio-cultural and International); Business Environment with reference to Global Integration; Comparative Analysis of Business Environment: India and Other Countries

Introduction to Law:

Meaning of Law and its Significance; Relevance of Law to Modern Civilized Society; Sources of Law; Legal Terminology and Maxims; Understanding Citation of Cases

Forms of Business Organization:

Concept and Features in relation to following business models- Sole Proprietorship; Partnership; Company; Statutory Bodies and Corporations; HUF and Family Business; Cooperatives, Societies and Trusts; Limited Liability Partnership; OPCs; Other Forms of Organizations.

Elements of Company Law:

Meaning and Nature of Company; Promotion and Incorporation of a Company; Familiarization with the Concept of Board of Directors, Shareholders and Company Meetings; Company Secretary; E-Governance

Scales of Business:

Micro, Small and Medium Enterprises; Large Scale Enterprises and Public Enterprises; MNCs

Elements of Law relating to Partnership and LLP:

Nature of Partnership and Similar Organizations- Co-Ownership, HUF; Partnership Deed; Rights and Liabilities of Partners- New Admitted, Retiring and Deceased Partners; Implied Authority of Partners and its Scope; Registration of Firms; Dissolution of Firms and of the Partnership; Limited Liability Partnership Act

Emerging Trends in Business:

Concepts, Advantages and Limitations-Franchising, Aggregators, Business Process Outsourcing (BPO) & Knowledge Process Outsourcing (KPO); E-Commerce, Digital Economy

Elements of Law relating to Contract:

Meaning of Contract; Essentials of a Valid Contract; Nature and Performance of Contract; Termination and Discharge of Contract; Indemnity and Guarantee; Bailment and Pledge; Law of Agency

Business Functions:

Strategic- Planning, Budgetary Control, R&D, Location of a Business, Factors affecting Location, Decision Making and Government Policy; Supply Chain Objectives, Importance, Limitations, Steps, Various Production Processes; Finance - Nature, Scope, Significance of Financial Management, Financial Planning (Management Decisions – Sources of Funds, Investment of Funds, Distribution of Profits); Marketing- Concept, Difference between Marketing and Selling, Marketing Mix, Functions of Marketing; Human Resources- Nature, Objectives, Significance; Services- Legal, Secretarial, Accounting, Administration, Information and Communication Technology; Social Functions.

Elements of Law relating to Sale of Goods:

Essentials of a Contract of Sale; Sale Distinguished from Agreement to Sell, Bailment, Contract for Work and Labour and Hire-Purchase; Conditions and Warranties; Transfer of Title by Non-Owners; Doctrine of Caveat Emptor; Performance of the Contract of Sale; Rights of Unpaid Seller

  Elements of Law relating to Negotiable Instruments:

Definition of a Negotiable Instrument; Instruments Negotiable by Law and by Custom; Types of Negotiable Instruments; Parties to a Negotiable Instrument Duties, Rights, Liabilities and Discharge; Material Alteration; Crossing of Cheques; Payment and Collection of Cheques and Demand Drafts; Presumption of Law as to Negotiable Instruments.

  Elements of Information Technology Act:

Cyberspace; Cyber laws; Scope of Cyber Laws; Classification of Cyber Crime; Information Technology Act 2000; Regulation of Certifying Authorities; Adjudication.

  Role of CS- Duties and Responsibilities, Areas of Practice:

Introduction; Role of Company Secretary under Companies Act, 2013- Role of Company Secretary in Employment, Role of Company Secretary in Practice; Recognition to Company Secretary in Practice under Various Laws.

Link for CS Foundation New Syllabus 2017 (ICSI website)