Std. XI Secretarial Practice Smart Notes PDF

 SMART NOTES SECRETARIAL PRACTICE T...

 SMART NOTES SECRETARIAL PRACTICE T F.Y.J.C. N MAHARASHTRA STATE BOARD TE (As per the revised syllabus w.e.f. Academic Year 2019-20) Salient Features: N  Based on the new textbook  Exhaustive content coverage in Question & Answer format O  Answers presented in an examination ready format  Smart Codes and Smart Recaps to memorize answers  ‘For your understanding’ section aids conceptual clarity C  Includes GG - our very own mascot that offers a practical touch to theory  Includes QR codes for reference content  Replete with practical and real life examples E  Highlighted key words and sentences that aid recall as well as revision  Chapterwise Index to help you understand the coverage of entire chapter PL M Printed at: Repro India Ltd., Mumbai SA © Target Publications Pvt. Ltd. No part of this book may be reproduced or transmitted in any form or by any means, C.D. ROM/Audio Video Cassettes or electronic, mechanical including photocopying; recording or by any information storage and retrieval system without permission in writing from the Publisher. Balbharati Registration No.: 2018MH0022 P.O. No. 185239 TEID: 13660 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 1 7/18/2019 1:31:40 PM  PREFACE Secretarial Practice ‘Smart Notes’ is a book curated to facilitate learning & instil conceptual understanding within students. This treasure trove of knowledge fosters T robust conceptual clarity and inspires confidence within the nimble mind of young learners. N This book not only provides answers to all textual questions but also addresses extra questions in each lesson with the aim of covering the entire topic and making TE stduents ready to face the competition. Throughout this book, questions are answered in a detailed, point-wise format which makes it easier for students to memorize and reproduce the answers in their examination. We have incorporated ‘Smart Codes’ to facilitate easy answer recall. In case of complex questions, we have provided ‘Smart Recap’ for quick recap of that question. N ‘For your understanding’ section offers additional information on a topic. This is required for conceptual clarity but need not be written in an examination. ‘QR codes’ O present throughout the book offer students practical knowledge through reference content. We’re sure that students, parents and teachers alike would love our value propostion and unique presentation of content that we have created for students in C this book. The journey to create a complete book is strewn with triumphs, failures and near misses. If you think we’ve nearly missed something or want to applaud us for our E triumphs, we’d love to hear from you. PL Please write to us at : [email protected] M Disclaimer SA This reference book is transformative work based on textual contents published by the Maharashtra State Board of Secondary and Higher Secondary Education. We the publishers are making this reference book which constitutes as fair use of textual contents which are transformed by adding and elaborating, with a view to simplify the same to enable the students to understand, memorize and reproduce the same in examinations. This work is purely inspired upon the course work as prescribed by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune. Every care has been taken in the publication of this reference book by the Authors while creating the contents, the Authors and the Publishers shall not be responsible for any loss or damages caused to any person on account of errors or omissions which might have crept in or disagreement of any third party on the point of view expressed in the reference book. © reserved with the Publisher for all the contents created by our Authors. No copyright is claimed in the textual contents which are presented as part of fair dealing with a view to provide best supplementary study material for the benefit of students. 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 2 7/17/2019 3:33:46 PM  Why to study Secretarial Practice ? Apart from the basic objective of passing and coming out with flying colours in your exams, there are various reasons for studying Secretarial Practice : 1. A role of Company Secretary in an organization is very important. He / she plays the role of a mediator between the board of directors and various external parties. T 2. Company secretary helps in complying with various procedures like conducting shareholders meeting, conducting board meetings etc. It also helps in complying with filing requirements of ROC. N 3. It is the responsibility of a Company Secretary to convey the message of the company to various interested parties like shareholders, creditors, depositors etc. Hence, he / she should TE have knowledge of writing letters. For students pursuing professional courses, this subject has added importance. How to study from this book ? N This book is divided into the following parts: i) Theory questions ii) Interpretative based questions. O Theory questions Questions covered in theory section are in the flow of textbook. Thus, once you read all the C questions, it’s as good as reading an entire chapter from the textbook. We advise you to study from this section first. Interpretative based questions E This section is at the end of the theory section. Questions covered in this section are either objectives or application-based questions. Once you have read and understood the theory, you are PL better equipped to solve and answer these questions. We have also provided answers for you to enable self evaluation. The book is rife with bits of value addition. Take a look further to understanding it. M Smart Code SMART CODE A D I C A R Q2 At times, answers are too lengthy and it’s difficult to 1) APPOINTMENT SA remember all the points. Hence, we have created A secretary can be appointed by individuals, smart codes for a few questions to aid you in professionals, joint stock companies, societies, remembering and recollecting these points. Please do government etc. In other words, a secretary not memorize each and every smart code. Instead of can be a personal secretary or institutional helping, it might end up confusing you. Memorize secretary. only those smart codes wherein you find the answer difficult to comprehend. 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 3 7/17/2019 3:33:46 PM  Smart Recap Membership is open to all and anyone In theory subjects, at times, answers are quite Voluntary can become a member. long and complex. It’s difficult to remember the Association entire answer. Hence, we have provided smart Incorporated Company is an association of persons recap i.e. summary of the entire answer for and is to be registered. students to revise it immediately. T Association N For Your Understanding FOR YOUR UNDERSTANDING TE Certain concepts are tricky and difficult to If a company is incorporated on 1st August, 2017, understand with a limited amount of explanation. To then the first meeting shall be held within 9 explain these concepts efficiently, we have provided a months of the financial year closing i.e. on or section named ‘For your understanding’ that provides before 31st December, 2018. better conceptual clarity. Please note that the content provided in this section need not be written N in the examination. This is purely for conceptual understanding. O GG – Gyan Guru Gyan Guru, our very own mascot, keeps popping C The Ministry of Corporate Affairs (MCA) has taken a ‘Green up throughout the book. He offers you a practical Initiative’ in Corporate Governance by and real-life example or an interesting fact, allowing paperless compliance by companies associated with the topic. Look out for him! through electronic mode. E QR Codes PL [Note: Please Scan the S.P. has numerous real-life applications. Various adjacent QR code to view forms, notices, documents mentioned in the information memorandum syllabus are used presently in business and shelf prospectus] organizations. We have given such data via QR codes for better understanding of the subject. M SUMMARY OF SECTION AND TIMELINES SUMMARY OF SECTION AND TIMELINES SA Important sections: At the end of chapters and wherever applicable, we have given a summary of sections and timelines covered in it. Section Particulars This will help you to revise and memorize all the sections number and timelines of the chapter. 96 Provisions regarding Annual General Meeting 100 Provisions regarding Extra Ordinary General Meeting 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 4 7/17/2019 3:33:46 PM  Variety of questions covered : The new syllabus has thrown a lot of new types of questions. In this book, you will be studying below types of questions: SA Sr. Ch. Ch. Ch. Ch. Ch. Ch. Ch. Ch. Ch. Ch. Ch. Ch. Nature of Question No. 1 2 3 4 5 6 7 8 9 10 11 12 M             Theory section Answer the following questions and Answer in brief (This is 1. covered under “Answer the following”)             2. Draft specimen letter for the following.   NA  NA    NA NA  NA    51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 5 3. Distinguish between. NA NA NA NA NA NA NA NA NA PL 4. Activities from textbook          NA  NA Objective section E Select the correct answer from the options given below and A.             rewrite the statements. B. Match the pairs.             C. Write a word or a term or a phrase which can substitute each of the following statements. C             D. State whether the following statements are True or False.             E.             F. Find the odd one. Complete the sentences.   O           G. Select the correct option from the bracket.                         H. Answer in one sentence. Correct the underlined word and rewrite the following N I. sentences.             J. Arrange in proper order NA NA   NA NA    NA NA  Explain the following terms / concepts.             Justify the following statements.             TE Study the following case / situation and express your opinion.             Note : All the above variety of questions are a part of textbook. N 7/18/2019 1:33:07 PM T  INDEX T Sr. NO. Titles Page No. 1. Secretary 1-16 N 2. Joint stock company 17-35 3. Formation of a company 36-48 TE 4. Documents related to formation of a company 49-68 5. Members of a company 69-78 6. Directors and Key Managerial Personnel of a company 79-106 7. Company Meetings – I 107-130 8. Company Meetings – II 131-146 N 9. Business communication skills of secretary 147-160 10. Correspondence with directors O 161-168 11. Correspondence with banks 169-184 12. Correspondence with statutory authorities 185-195 Objectives 196-282 C E Note: All Textual questions are represented by (T) mark. PL M SA 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 6 7/18/2019 1:32:28 PM   Chapter 1: Secretary 1 Secretary SR. NO. PARTICULARS READ 1 READ 2 READ 3 T 1. Explain the features of a secretary. (T) OR Mention any four features of a secretary. (T) N 2. Define a secretary and explain the importance of a secretary. (T) 3. Write a brief note on Personal Secretary. TE 4. Explain briefly the various types of Institutional Secretaries. (T) 5. What are the functions of secretary? OR State any four functions of a secretary. (T) N 6. Describe the qualities of a secretary. (T) OR Describe any four qualities of a secretary (T) O 7. Distinguish between: a. Personal Secretary and Company Secretary (T) b. Secretary of Co-operative society and C Secretary of Government department (T) c. Company secretary and Secretary of Government department (T) E d. Secretary of Non-profit association and Secretary of co-operative society (T) 8. Activities from Textbook PL INTRODUCTION The Indian economy is growing at a very rapid pace. It has fastest growing service M sector. Various forms of business organizations have developed to cater to ever increasing demands. With the increase in pace of economy, the competition also has SA increased multifold. The organizations have to strive hard to create opportunities as well as survive & grow in this environment. Therefore, there is a need for individuals having specialized knowledge and skills in their respective fields. One of such specialized individual is known as “secretary”. The profession of secretary is one such profession which caters to the changing demands of business owners and organizations. 1 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 7 7/17/2019 3:33:46 PM   Std. XI: Secretarial Practice ORIGIN OF SECRETARY The Latin words ‘secretum’ or ‘secretus’ means the secrets. The word ‘secretary’ has been derived from the Latin word ‘Secretarius’ which means someone who works for a person of great importance. T In Roman Empire, the officer performing secretarial duties or doing secretarial work was called as a ‘Scribae’ which means professional letter writer or one who maintains confidential N records. In Ancient Indian history, Secretary was referred to as ‘Amatya’, ‘Sachiva’ or ‘Chitnis’ which means a person who does secretarial work. TE The government also has secretaries for various departments. These secretaries function in ‘Sachivalaya’. Origin Former names Meaning Latin language Secretarius A confidential writer or officer with whom N the secrets are entrusted by employer. Roman Empire Scribae O A professional letter writer or one who maintains confidential records Indian history ‘Amatya’, ‘Sachiva’ or ‘Chitnis’ A person who does secretarial work In 1870 Sir Isaac Pitman founded a school where students could qualify as professional C writers. In 1888, with the invention of typewriters, the role of secretary increased. In an effort to promote professionalism, the National Secretaries Association was created in 1942 in the USA. Later a special Secretaries Day was created which would be in the last week of E April. This week is now known as Administrative Professional’s Week. PL MEANING AND DEFINITION Oxford dictionary defines secretary as – ‘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 a public body.’ According to the Companies Act 2013 Section 2(24) ‘‘Company Secretary or Secretary M means a Company Secretary as defined in Clause (c) of Sub-section (i) of Section 2 of the Company Secretaries Act 1980 who is appointed by a company to perform the function of a SA Company Secretary under this Act.’’ The Company Secretaries Act, 1980 defines Company Secretary as - “a person who is a member of Institute of Company Secretaries of India.” From the above definitions, it can be concluded that a secretary is appointed to ensure smooth functioning of the organization and assists in various functions related to correspondence, meetings, record keeping and any such administrative work. 2 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 8 7/17/2019 3:33:46 PM   Chapter 1: Secretary Q.1. Answer the following questions 1. Explain the features of a secretary. (T) OR Mention any four features of a secretary. (T) T Ans: According to the Companies Act 2013 Section 2(24) ‘‘Company Secretary or Secretary means a Company Secretary as defined in Clause (c) of Sub-section (i) of Section 2 N of the Company Secretaries Act 1980 who is appointed by a company to perform the function of a Company Secretary under this Act.’’ The features of secretary are as under: TE SMART CODE A D I C A R Q2 1) APPOINTMENT A secretary can be appointed by individuals, professionals, joint stock companies, N societies, government etc. In other words, a secretary can be a personal secretary or institutional secretary. O i. Personal secretary is one who is appointed by a single person or individual such as doctor, politician, film actors, etc. ii. Institutional secretary is one who is appointed by an organization such as C joint stock company, co-operative society, partnership firm etc. 2) DUTIES Over a period of time, the role of secretary has also undergone a major change. A E secretary has to perform following duties: i. Routine and administrative duties such as correspondence, conducting PL meetings, maintaining records and providing information. ii. Day to day routine duties related to the employer or organization such as clerical work, fixing appointments, giving reminders, replying to other employees queries etc. The role of secretary is not just limited to above areas. The duties vary according M to the nature of work of the organization or employer. In recent times, secretary has to ensure legal compliances as well. SA 3) INDIVIDUAL Only individuals can be appointed as secretary of the organization. In other words, a company or firm or institution cannot be appointed as secretary. A secretary has to be an individual as per the provisions of the Company Law. Besides, the skills required to fulfill the duties and responsibilities of a secretary are possessed by an individual only. 3 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 9 7/17/2019 3:33:46 PM   Std. XI: Secretarial Practice 4) CONFIDENTIAL OFFICER Secretary, being integral part of an organization, has access to confidential and crucial information related to the organization. He is also involved in making & executing important policy decisions and is closely connected to top management T as well. All such important decisions regarding business activities are required to be kept confidential. Secretary guards the secrets of the organization and does not N disclose it to anyone unless required and authorized to do so. Hence, secretary is often referred to as ‘confidential officer’. 5) A PAID EMPLOYEE TE Secretary is an employee of the individual or an organization which has appointed him. Despite being an employee, secretary holds a very important position in the organization. He is paid salary or honorarium (professional fees) as remuneration. N 6) REPRESENTATIVE A secretary acts as a representative of the organization. Personal secretaries O represent their employers. Institutional secretaries represent their organizations. 7) QUALIFICATION Any person who is appointed as a secretary needs to have qualifications as required C by the organization. However, a person who is appointed as a company secretary in a private or public limited company also needs to have certain prescribed qualifications according to the Companies Act, 2013. Similarly, the secretary of a E government department needs to have prescribed qualifications as per the government rules and regulations. PL 8) QUALITIES Secretary plays an important role in the organization. He has to handle difficult situations, take important decisions, manage people etc. Hence, he needs to possess various qualities like concentration, tact, loyalty, accuracy, intelligence, honesty, leadership, pro-activeness, patience, compassion etc. All M these abilities will help in smooth and efficient working of the organization. SA 2. Define a secretary and explain the importance of a secretary. (T) Ans: According to the Companies Act 2013 Section 2(24) ‘‘Company Secretary or Secretary means a Company Secretary as defined in Clause (c) of Sub-section (i) of Section 2 of the Company Secretaries Act 1980 who is appointed by a company to perform the function of a Company Secretary under this Act.’’ The need and importance of the secretary can be highlighted with the following points: 4 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 10 7/17/2019 3:33:46 PM   Chapter 1: Secretary SMART CODE F E M A L E C S 1) FULFILLMENT OF SECRETARIAL STANDARDS AND SECRETARIAL AUDIT T Secretarial Standards and Audit aim at checking whether the company is adhering to the legal and procedural requirements. Secretary ensures that these standards N are followed and met. (Secretarial Standards and Secretarial Audit (SS and SA) are discussed in Chapter 6) 2) EXPERT ADVICE AND GUIDANCE TE The secretary is the key advisor to the management. He is closely connected with all areas of business operations. He also has sound business knowledge. Hence, the point of view and the opinion of secretary are always considered before implementing any policies and taking decisions. The secretary also provides able N guidance to the management and helps to achieve expected growth of business. 3) CONDUCTING MEETINGS O Every business organization has to conduct meetings where people meet and take important decisions. In a company form of organization, there are various meetings like board meeting, annual general meeting, extraordinary general meeting etc. C which have to be conducted. The secretary is responsible for making arrangements for the meetings. He is also required to carry out formalities which are required to be undertaken before and after the meeting like sending out notices, agenda, E preparing minutes etc. 4) ADMINISTRATOR PL Top management should have time for thinking about organization’s vision and growth. They should not be busy with day to day business affairs such as answering calls, responding to mails, attending to visitors, replying to queries, etc. All the day to day operations and duties are looked after by secretary so that the management is free to think about new business areas, expansion M plans, framing new policies etc. Besides, secretary also handles executive duties like assisting in policy formation, preparation of plans, supervision and execution SA of plans etc. 5) LEGAL COMPLIANCE OFFICER Secretary has to ensure proper and timely legal compliance in all activities of the organization. - He has to maintain statutory books, registers etc as prescribed under various Acts. - He needs to file returns with proper authorities within the stipulated time. 5 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 11 7/17/2019 3:33:46 PM   Std. XI: Secretarial Practice A company has to file its annual return with the Registrar of Companies (ROC) in form MGT-7 within 60 days from the date of AGM. The company secretary has to ensure that this return is filed on time. The company has T to pay a penalty of ` 100 per day if this return is not filed within the time specified. N 6) EFFECTIVE COMMUNICATION BETWEEN MANAGEMENT AND STAFF The management is responsible for taking important decisions. However, these decisions are implemented by the staff of the organization. Hence, it is very important TE that these decisions are communicated effectively to all levels of the organization. Secretary acts as a link between management and staff and helps in effective communication. He also ensures that these decisions are successfully implemented. 7) CORRESPONDENT N Correspondence generally refers to written communication by one person with another person or business organization. Every business organization has to O communicate business matters with its shareholders, directors, banks, employees, suppliers, clients etc. The secretary is a correspondent of the organization and is therefore responsible for inward and outward correspondence. C 8) SAFE KEEPER OF SECRET INFORMATION Secretary, being integral part of an organization, he has access to confidential and crucial information related to its organization. He is also involved in making & E executing important decisions. The secretary guards the secrets of the employer / organization and does not disclose it to any third party unless required and authorized PL to do so. Therefore, he is often referred to as ‘confidential officer’. John Nicolay was the personal assistant of Former US President Abraham Lincoln. It is said that he was an extremely crucial part of the White House and enjoyed close relations with the President. He was M so talented that he later pursued his own political career and was US in Paris and also headed the United State Supreme Court Police. This example shows SA how important Personal Assistants can be. TYPES OF SECRETARY The role of secretary is becoming more and more important now. The growth of industrialization and modernization has led to various types of organization. The organizations prefer people with specialized skills. They need someone whom they can entrust with the responsibilities. The concept of secretary has now expanded and is required by almost all types of organization. 6 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 12 7/17/2019 3:33:46 PM   Chapter 1: Secretary Following are the various types of secretaries: Secretary Personal Secretary or Institutional Personal Assistant Secretary T Secretary of Secretary of Secretary of Secretary of Other Body N Non-Profit Co-operative Joint Stock Government Corporates Association Society Company Department 3. Write a brief note on Personal Secretary. TE Ans: Industrialist, businessman etc need some individual to handle their personal work as well as routine office work on daily basis. These people cannot use their time to manage the day to day work. Hence, they appoint various individuals to help them. One of such individual appointed by them for business correspondence and other personal work is N known as personal secretary. Personal Secretary is the one who assists the employer in daily business and personal task. O Appointment: Individuals with a busy schedule like lawyers, doctors, engineers, politicians, actors, leaders etc appoint secretary to reduce their day to day work. Qualification: There is no prescribed qualification to be a personal secretary. The C requirement varies from employer to employer. However, graduation degree, good command over language, good communication and correspondence skills, internet skills and computer knowledge are few basic requirements. E 4. Explain briefly the various types of Institutional Secretaries. (T) PL Ans: With advancement in technology, increase in size of organizations and increasing competition, there is a need for individuals having specialized knowledge and skills in their respective fields. One of such specialized individual is known as “Secretary”. A secretary appointed by an institution or an organization is called institutional secretary. Some institutional secretaries are as under: M 1) SECRETARY OF A NON-PROFIT ASSOCIATION A Non-Proft Association means any club, society or a group of persons engaged in SA promoting social, educational, cultural, arts, sports activities with an intention of providing services and not to earn profit. Its activities are service and welfare oriented. E.g.: Rotary Club, Lions Club, Sports club, Cultural clubs, Chamber of Commerce, etc. Appointment: A non-profit association is managed by a managing committee. This committee is elected by the members themselves. The secretary may be a full time or part time person working on salary basis or honorarium basis. 7 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 13 7/17/2019 3:33:46 PM   Std. XI: Secretarial Practice Qualification: There is no prescribed qualification to be a secretary of a non-profit association. However, the secretary should be acquanited with the objects and basic functioning of the organization. Besides, a graduation degree, good command over language, good communication and correspondence skills, internet skills and T computer knowledge are few basic requirements. 2) SECRETARY OF A CO-OPERATIVE SOCIETY N Co-operative society is a voluntary organization formed by minimum ten or more members. It is formed to promote, protect and safeguard the interest of members. E.g. New India Co-operative Bank, Credit society, Housing society etc. Every co- TE operative society needs to be registered under the Co-operative Societies Act. In Maharashtra, the societies are to be registered under the Maharashtra State Co- operative Societies Act, 1960. Appointment: Managing committee is the governing body of co-operative society. N This committee is elected by the members themselves. One of the members of the managing committee is appointed as secretary. Generally such secretary works O on honorary basis (no payment). For large scale co-operative organization, secretary may be appointed as a full time employee on salary basis. Qualification: There is no prescribed qualification to be a secretary of a co- C operative society. However, the secretary should have a good knowledge of the Co- operative Societies Act and should atleast be a graduate. 3) SECRETARY OF A JOINT STOCK COMPANY E Joint Stock Company is the most suitable form of organization for carrying out operations on large scale. Hence, it requires specialized services of company PL secretary. The secretary is one of the most important member of the organization. Every listed company and all other companies having a paid up capital of ` 5 crore or more should have a full time company secretary. Appointment: The Company Secretary is appointed right from the time of incorporation of company to look after various aspects of business. Secretary M usually works directly under the control of the Board of Directors. The appointment of Company Secretary is as per the Companies Act 2013. SA The concept of Key Managerial Personnel (KMP) has been introduced in the Companies Act 2013. Company Secretary is included in the definition of KMPs. The Board of Directors cannot look after the day to day affairs of the company and therefore the task is given to certain managers and executives of the company. Qualification: As per Section 203 of Companies Act 2013, the Company Secretary must be a member of the Institute of Company Secretaries of India (ICSI). 8 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 14 7/17/2019 3:33:46 PM   Chapter 1: Secretary 4) SECRETARY OF A GOVERNMENT DEPARTMENT Government departments are the departments working under various ministers of State and Central Government. Appointment: In the functioning of Government of India and State Government, a T secretary is the administrative head of a Ministry or Department. The secretaries hold positions as heads of the departments like Finance Secretary, Defence N Secretary, Home Secretary etc. Qualification: The secretary of a government department needs to possess a graduation degree. The secretary should pass the Civil Services Examination conducted TE by the Public Service Commission and be in Indian Administrative Services (IAS). Did you know that approximately 10,00,000 students appreared for Union Public Service Commission (UPSC) exam in 2017 and N only 1960 candidates were finally selected. The UPSC exams are one of the top five toughest exams in the world. O 5. What are the functions of secretary ? OR State any four functions of a secretary. (T) C Ans: Oxford dictionary defines secretary as – ‘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 a public body.’ E The secretary performs various tasks and is entrusted with office responsibilities of a company, department or an individual. The role and functions of a secretary is extremely PL important in smooth functioning of business. The functions of secretary are as under: SMART CODE F A A S O S C A R 1) FINANCIAL FUNCTIONS M Secretary undertakes banking and accounting related work. He / She keeps a track of receipts and payments and ensures timely payments to creditors. Secretary SA further provides necessary information to employer, management, banks and government. 2) ASSISTANCE IN FORMULATING POLICIES Secretary works closely with Board of Directors and reports to them. Secretary also helps them in formulating policies by collecting relevant statistical data and information. 9 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 15 7/17/2019 3:33:46 PM   Std. XI: Secretarial Practice 3) ARRANGING MEETINGS Secretary is responsible for arranging meetings. These meetings can be with vendors, stakeholders, banks or any other parties. He also arranges general meetings, meeting of board of directors and managing committee meetings as per the provisions of the T respective Acts. Secretary ensures all the legal compliances are followed while arranging meetings including notice, agenda and minutes of meetings. N 4) STATUTORY FUNCTIONS Secretary has to comply with all the provisions of the Acts applicable to the organization. E.g.: Co-operative Societies Act for co-operative societies, Companies TE Act, 2013 for joint stock companies etc. He also has to comply with the Income Tax Act, Stamp Act, Shop & Establishments Act, Goods and Services Tax Act etc. 5) OFFICE MANAGEMENT With increasing size of organizations, a dedicated person is required for its smooth N functioning. Secretary is responsible for the efficiency of the entire office routine. Secretary guides, supervises and controls the staff. Secretary is also responsible for O training, promotion and transfer of the office staff. 6) SECRETARY PROVIDES INFORMATION Stakeholders of organization like management, vendors, department heads, banks, C government heads, shareholders etc require various information on timely basis. Secretary makes sure that the information reaches them in timely and accurate manner. E 7) CORRESPONDENCE A business organization or an individual has to correspond with various vendors, PL clients, banks, government departments etc. Correspondence is an integral function of a secretary. The secretary looks after inwards and outward mail, replying to inquiries from outsiders, government department and other stake holders. Secretary also looks after the various records of the organization. 8) ADMINISTRATIVE FUNCTIONS M There are lot of administrative functions like appointing employees, distribution of office work, supervision, training, promotion etc. in an office. Secretary assists in SA carrying out such functions. Besides, secretary also maintains all statutory books under proper custody. 9) RECEPTION FUNCTION Personal secretary is responsible for carrying out reception functions. This includes welcoming people who come to meet, attending phone calls, solving their queries, giving information, fixing appointments etc. 10 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 16 7/17/2019 3:33:46 PM   Chapter 1: Secretary 6. Describe the qualities of a secretary. (T) OR Describe any four qualities of a secretary (T) Ans: A secretary should possess certain qualities apart from academic qualifications to be able to fulfil the employer’s or organization’s goals. They are as follows: T 1) ACCURACY Accuracy means correctness. The employer or management of an organization N depend on the secretary for a lot of important work. Therefore, a secretary must be accurate in his work like drafting letters, recording minutes, maintaining records etc. ‘Accuracy’ is one of the qualities of an ideal TE secretary. 2) ADAPTABILITY Change is law of nature. Adaptability means ability to adjust oneself to the changing situation. The situation changes due to change in government policy, N management policy etc. Secretary must be able to adjust with the changing situation and also encourage others to adjust to the situations. O 3) CO-OPERATIVENESS Co-operativeness refers to the willingness of the part on the secretary to assist others in achieving the objectives of the organization. Secretary must be co- C operative. He must help others and try to solve their problems. This will help in developing team spirit and sense of togetherness in the organization. 4) COURTESY E Courtesy means politeness and kindness. A secretary should be courteous while dealing with people. This approach creates a positive impression about the employer PL and the organization. At times, the entire tone of the meeting is set by the way the secretary interacts with a visitor. 5) INITIATIVE Initiative means a person’s tendency to take efforts voluntarily to accomplish a task. Secretary is one of the important employees of the organization. Hence, he is M required to always lead from front. He has to take initiative to take quick and right decisions if the employers are not present. SA 6) LEADERSHIP Leadership is an important quality for a secretary as he is required to get the work done through others. He must be able to guide, advise, inspire and motivate others to complete their work in an efficient manner. It will help in creating team spirit. If the leader is strong, only then the staff will be confident and motivated to achieve the organizational goals. 11 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 17 7/17/2019 3:33:46 PM   Std. XI: Secretarial Practice 7) LOYALTY Loyalty means faithfulness. Secretarial work is confidential in nature. A secretary has knowledge of many confidential matters. He should not disclose these matters to anyone. He must be loyal and give top priority only to organizational goals. T 8) ORDERLINESS It means doing the work in a systematic manner. Secretary has a lot of work in N an organization. He will be able to complete his tasks efficiently and in time only if he works in an orderly manner. 9) PLEASING PERSONALITY TE A secretary should have a pleasing personality. It includes his way of talking, mannerisms, calmness in handling a situation, good temper, confident approach and willingness to accept challenges. 10) KNOWLEDGE SEEKER N The role of secretary is very dynamic. It is necessary that the secretary keeps upgrading the knowledge so that he / she can discharge the duties and statutory functions efficiently. O 11) PUNCTUALITY Punctuality is related to the time sense and refers to doing things at the appropriate time. Secretary must complete the assigned work in prescribed time. C Any delay in completing the work creates a bad impression for the organization. 12) SOUND JUDGEMENT Secretary should have a good sense of judgement. He / She should be able to E judge the situation and accordingly take correct decisions. The secretary should also be able to judge the effectiveness and performance of his sub-ordinates. PL 13) TACTFULNESS Tactfulness is the ability of a person to handle a situation in a right manner. Secretary should be able to handle people & situations in such a manner that one does not feel offended. Secretary must have this quality as he is required to communicate with employees and outsiders on regular basis. This quality will help M secretary in acting and reacting in a wise and sensible way. SA Accuracy Secretary must be accurate in all the work assigned. Secretary must be able to adjust with the changing situation Adaptability and also encourage others to adjust to the situations. 12 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 18 7/17/2019 3:33:46 PM   Chapter 1: Secretary Accuracy Secretary must be accurate in all the work assigned. Secretary must be able to adjust with the changing situation Adaptability and also encourage others to adjust to the situations. T Helps in developing team spirit as well as sense of Co-operativeness togetherness N It creates a positive impression about employer and Courtesy organization. TE Initiative Secretary should take initiative to take decisions. Leadership Leadership skills help in creating team spirit. N Secretary should not disclose confidential matters to anyone Loyalty and should be loyal to organizational goals. O Orderliness helps in completing the work in proper order and Orderliness timely manner. C Pleasing personality Secretary should have pleasing personality. Knowledge seeker Secretary should keep updating his knowledge. E Lack of punctuality creates a bad impression about the Punctuality organization. PL Secretary should be able to judge the situation and take Sound judgement correct decision. This quality will help in handling different persons and Tactfulness situations properly. M Q.2. SA Distinguish Between 1. Personal Secretary and Company Secretary (T) 2. Secretary of co-operative society and Secretary of government department (T) 3. Company Secretary and Secretary of Government department (T) 4. Secretary of non-profit association and Secretary of co-operative society (T) 13 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 19 7/17/2019 3:33:46 PM   Std. XI: Secretarial Practice Personal Secretary of Non- Secretary of Co- Company Secretary of Secretary profit organization operative society Secretary Government Department 1) Meaning Personal Secretary of non – Secretary of a Secretary of a A Secretary of T Secretary is an profit organization co-operative joint stock a government individual is a person society is one company is department is N appointed by appointed to look such member appointed by the administrative professionals or after the working from managing business head of a busy persons of the committee. He is organization department working TE to assist them organization and appointed to look to ensure legal under a minister of in their work. conduct specified after the working compliance. State or Central activities for the of the society. Govt. organization. N 2) Purpose The main role The main role of The main role of O The main role of The main role of of personal secretary of secretary of secretary of joint secretary of secretary is to non-profit co-operative stock company is Government department assist the organization is society is to to assist the is to assist in carrying C busy individuals to assist in assist in Board of Directors out administrative in their day to promoting the safeguarding the in taking decisions work under the control day work. activities of the common interest and executive of ministers of their E organization. of the members. functions. respective departments. PL 3) Appointment The secretary is The secretary is The secretary is The secretary is The secretary is appointed by appointed appointed by appointed by the appointed by the busy persons by managing managing Board of Directors State or Central like doctors, committee of committee of the company. Government. M lawyers, actors, the of the political leaders, association. co-operative SA businessman etc. society. 4) Legal status The secretary The secretary Secretary has Company Secretary The secretary is has no legal has no legal legal status as per has legal status as appointed by the status. status. the Co-operative per the Companies government and has Societies Act. Act. a legal status. 14 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 20 7/17/2019 3:33:47 PM   Chapter 1: Secretary 5) Qualification There is no There is no There is no The secretary The secretary prescribed prescribed prescribed must be a must be in Indian qualification for qualification for qualification for member of ICSI. Administrative T appointment of appointment of appointment of Services (IAS) this type of this type of this type of N secretary. secretary. secretary. 6) Position The secretary The secretary is The secretary is The Company The secretary TE is a personal usually a a member of Secretary is is the administrative assistant of member of the society and one of the head of department the employer. managing voted to become Key Managerial or ministry. committee. a secretary. Personnel (KMP). N 7) Powers The powers of The secretary has The secretary O The secretary has The secretary has the secretary limited powers for has the power as statutory and statutory powers as are defined and conducting the per Co-operative managerial per the ministry or stated by the activities of the Societies Act. powers as per the department. C employer. organization. Companies Act. 8) Duties The duties The rights The rights and The duties are as The secretary looks E are according and duties duties are laid mentioned in the after the work of to the work are governed down in the Co- Companies Act and his concerned PL of the by the managing operative other work as departments / employer. committee of Societies Act allotted by Board of ministry. the Association. Director has to be done by secretary. 9) Compulsion to appoint M There is no There is no It is compulsory Every listed Appointment compulsion to compulsion to to appoint as per company and all of secretary SA appoint personal appoint secretary. the Act. other companies for every secretary. The appointment having a paid up government is based on the capital of ` 5 department is nature and size crore or more compulsory. of the should have a full organization. time Secretary. 15 51901597_Target Pub_Std XI Smart Notes Secretarial Practice (Commerce)_Text.pdf 21 7/17/2019 3:33:47 PM   Std. XI: Secretarial Practice 10) Remuneration The secretary The secretary The secretary The secretary is a The secretary is a is a salaried may get a salary may get a salary full time full time employee person. or work on or work on employee and and gets salary and T honorarium. honorarium. gets a salary perks as per the determined by government rules. N the Board. TE ACTIVITIES FROM TEXTBOOK Activi