HI TECH INSTITUTE OF ENGINEERING

AND TECHNOLOGY, GHAZIABAD

Subject Name: Constitution of India, Law and Engineering

Faculty Name: Ms. Riddhi Chauhan

MODULE- 5

BUSINESS ORGANIZATIONS AND E-GOVERNANCE

The Legal Forms/Types of Business

Introduction
A person wanting to set up a business has to consider what legal form of business should take.
Factors influencing this decision are -
● How many owners the business is going to have?
● What is the tax position of the business?
● Can the owner take the risk of unlimited liability?
● Does the owner want all the business profits?
● Is there a complete privacy in the affairs of the business for the owner?
● In the case of the owners illness or death what will happen to the business?

Sole Trader
Sole trader is a person who owns and operates their own business. They may or may not employ other
people. Sole trader is a small business with little capital available for expansion and the capital that
has been invested comes from one source and that is the owner. Sole traders are common businesses.
Example of a sole trader business is a hairdresser, vegetable vendors etc.
Advantages of being a Sole trader are

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❖ Profits - They are kept by the owner. There are no other shareholders so the profits don't have to
be split.
❖ Easy to run - Every business is difficult to run successfully but sole trader is the easiest form of
business.
❖ Easy to establish - Hardly any complicated forms or procedures. Some of the other legal forms
have to completed before the business can start.
❖ Total control - The owner is in charge of the business. He/she does not need to discuss their
decisions with any other owners. They have total control of the business.
❖ Privacy - As there are no shareholders in the business, information only shared with the tax
authorities.
❖ Flexibility - Very flexible working hours as sole trader is its own boss e.g. Rather than working
on Friday he/she decides to work on Sunday instead.

Disadvantages of Sole Trader

❖ Illness- If ill, the business might be forced to shut down stopping the income and profits
❖ Unlimited liability - If the things don't work out as planned the sole proprietor could lose all its
investment.
❖ Lack of continuity - Because the owner is the business there is no guarantee that the business
will carry on running once the owner decided to stop.
❖ Long hours - Long hours may be required of the owner to keep the business afloat.
❖ Difficulty in raising capital- Small businesses find it hard to find a start- up capital and usually
the owner might have to put his/her house as an insurance for capital borrowed.
❖ Limited specialization - As the owner has to be a purchaser, lorry driver and accountant there is
no time for this person to specialize in all fields.
❖ Limited economies of scale - e.g. a small construction business would have to hire a lorry to do
the required task as this would be cheaper but larger business would buy its own as this would
prove to be cheaper due to the fact that lorry is in continuous use.

Partnership
Partnership is a type of business where 2 or more people agree to do own, run and trade.
Partnerships require a high degree of trust.
When setting up a business a person has to decide whether to set up a business on their own or with
others. This will depend on:
❖ How much control they want over the business?
❖ Are they prepared to share the profit?

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❖ Can they raise necessary capital to start up the business by themselves?
❖ There is also a risk factor. Is this person prepared to accept the risk of unlimited ability?
The advantages of partnership are
❖ Easy to set up.
❖ Solicitors and accountants are not required to run the business.
❖ Profits belong to the partners.
❖ Privacy Only tax authorities need to be told how much partners are earning and profit of the
business.
❖ Good relations between partners.
❖ Raising capital for the business is easier than that of sole proprietor.
❖ Different expertise for partners - e.g. One specializes in accountancy whilst the other in
marketing.
Some businesses have sleeping/silent partners. They play a little role in running day to day basis of a
business but they provide the capital for the business.
The disadvantages of partnership -
❖ Disagreements between partners, which can be bad for business.
❖ Some partnerships don't have a deed of partnership, which can be bad for business.
❖ Most partnerships are relatively small businesses. e.g. Shops.
● Ordinary Partnerships - There can be between 2 and 20 partners.
● Deed of Partnership - It is the legal contract, which sets out following-
❖ Who the partners are?
❖ Capital brought into business by each partner.
❖ How profits should be shared?
❖ How many votes each partner has in any partnership meeting?
❖ What happens if there is a withdrawal of a partner from the business?

Limited Companies
Every limited company have shareholders. The term limited company refers to the fact that if the
company goes into debt each shareholder risks losing only the amount he has invested and his
personal belongings are safe and can't be touched.
The owners of the company are called shareholders.
They have limited liability.
Two documents required by Registrar of Companies to set up a limited company are
The Articles of Association - This is basically the rule book of how the company must operate. It
is agreed by the people setting up the business. The articles of association gives details such as voting

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rights of the shareholders, how the profit will be distributed, how decisions will be reached etc.
The Memorandum of Association - This is basically the CV of the company. It tells people what
the business does and where it operates from. In it you could find the details such as the names of the
companies and the addresses of their headquarters.
Public Limited Companies and Private Limited Companies
Difference between PLC and LTD lie in: Sales of shares - the Public Limited Company's shares
must be tradable on stock exchange.
Public Limited Company (PLC) - It is a separate legal business entity which offers its shares to be
traded on the stock exchange for the general public. The managers and the directors are different form
shareholders.
The advantages of PLC company are:
● It is easier to attract shareholders to invest money in the business because of limited liability. It
enables a business to grow and become large.
The disadvantages of becoming PLC company are:
● General public has the access about the company's information.
● Giving information out is also costly in terms of administration costs
● PLC companies must comply with stock exchange rules.
● It has been known that sometimes the only interest for a shareholder is short term profit.
Private Limited Companies are those companies which are privately held by the people. They are
mostly preferred as a common business organization in India. Shareholders may operate the business
themselves, or hire directors to manage the company on their behalf. Private Limited Company is the
most popular legal structure for businesses.
A private limited company has every benefit of partnership like flexibility, greater capital contribution
and enhanced abilities etc to offer combined with limited liability, greater stability and legal entity.
In a Private Ltd. Company-
Minimum 2 and maximum 200 members are required.
Minimum paid-up capital needed to start business is Rs. 1,00,000.
Minimum 2 directors must be there.
Transfer of share can be restricted as per the Articles of the company.
It can take loan from shareholders, directors and relatives of directors but not from the public.
Shares cannot be issued to public.
The words 'Private Limited' should be suffix or must come after the name of company. Many of the
restrictive provisions of Companies Act are not applicable to Private Limited Company allowing
flexibility and convenience unlike Public Limited Company.

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 Companies Act, 2013
The Companies Act, 2013 regulates the formation and functioning of corporations or companies in
India. The first Companies Act after independence was passed in 1956, which governed business
entities in the country. This Act was amended multiple times, and in 2013, major changes were
introduced. By Section 135 of the 2013 Act,
India became the first country to make Corporate Social Responsibility (CSR) mandatory by law.

Formation of a Company
Definition - According to Companies Act 2013, "Company is an artificial person. It is an invisible
and intangible person having a separate legal entity".
Formation - The formation of a company is a legal process, which involves a series of steps and
legal formalities. The process of formation is divided into the following three stages:
1. Promotion stage.
2. Registration and incorporation stage.
3. Commencement of business stage.

[Link] Stage
Promotion is the process of discovery and investigation, of business opportunities, planning and
organization of physical, financial, and human resources with a view to forming a company.
Promoter - A promoter is a person or a group of persons who -
● Conceives the idea of formation of a company.
● Takes necessary steps for its incorporation.
● Control over affairs of the company.
● Play the role of shareholders, Board of directors to act with advice, directions, or instructions.
Legal position of a Promoter
✔ Neither an Agent
✔ Nor a Trustee
✔ Fiduciary relation to the company.
Functions
o Conceiving the Idea of the Company- the idea should not be based on false notions.
o Investigation and Verification of the Idea- by gathering information and doing feasibility test.
o Assembling the Requirements- like employee staff, memorandum, directors of Company.
o Making preliminary contracts- contracts like purchasing land, making payment.
o Financial planning- deciding for capital structure, agreements with banker and brokers.

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o Compliance with legal formalities-
decide place registered for company.
get the name approved and registered by the registrar etc.
o Ensuring subscription to the Initial Capital.
o Ensuring verification of the Registered Office within period of 30 days of company
incorporation.
o Controlling affairs of company

2. Registration and Incorporation of Company

This is the second stage of formation of a company. A company come into existence only after its
registration and issue of certificate of incorporation to it. It usually involves four steps;
❖ Preliminary steps
❖ Application for registration and delivery of documents
❖ Scrutiny and registration of documents by the registrar
❖ Issue of certificate of incorporation and CIN.
A. Preliminary Steps
In order to get a company registered, following steps are taken by the promoters:
❖ Deciding the kind of company.
❖ Deciding the place of registered office.
❖ Obtaining digital signature by promoters etc.
❖ Selecting and reserving name of the company
❖ Drafting Memorandum (MOA).
❖ Drafting Articles (AOA).
❖ Printing of the documents.
B. Application for registration and delivery of documents
The application requires following documents and information;
❖ Notice of address for communication [Sec. 7(1)(d)].
❖ Memorandum of the company Rule INC-13.
❖ Articles of the company [Sec.7(1)(a)].
❖ Particulars of every subscriber.
❖ Particulars of directors.
C. Scrutiny and Registration of Documents
In this step the rectification work done by an authorized person if any defect found in documents.
D. Issue Certificate of Incorporation and CIN

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After rectification work of all the documents and information, the Registrar issue a certificate of
incorporation in the form no. INC-11 to the effect that the proposed company is incorporated under
this act[ Secs. 7(2) and Rule INC-18] and issue the company a Corporate Identity Number (CIN).
3. Commencement of Business
According to the latest provisions of the Companies act, every company is entitled to commence its
business as soon as it obtains its certificate of incorporation. No other formality required to be
complied with it.

CONVERSION OF A COMPANY
❖ Conversion: Public company to Private Company - The conversion can take place in following
ways:
● A Public company can be converted into a private company by altering the articles.
● Approval of the central government is necessary for converting a Public company into a private
company.
● Special resolution is to be passed within 30 days, after obtaining the approval of the Central
Government for conversion.
● The word private Ltd. is used.
● The conversion of a public company into a private company does not affect the identity of the
company.
❖ Conversion: Private company to Public Company - There are three ways through which the
conversion of a private company into a public company takes places.
● Conversion by default.
● Conversion by operation of law.
● Conversion by choice.

Conversion by default:
A private company gets converted into a public company automatically (that is if it permits free
transferability of shares, if its membership exceeds 200 or when it extends invitation to the public to
subscribe to shares or debentures or to make deposits).
● As a result of this the private company will not be able to enjoy the privileges and exemptions
conferred on it and the provisions of the companies Act shall apply to it as if it were a public
company.
● Further, if the company wants to remain a private company, than it should apply to the Company
Law Board for relief.
Conversion by the operation of Law:

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There are four circumstances which would force a private company to become a public company.
They are:
● Where 25% or more its paid-up share capital is held by one or more bodies corporate or public
company.
● Where the average annual turnover is not less than 25 crores for three consecutive financial
years.
● Where a private company holds out not less than 25% of the paid-up share capital of a public
company.
● Where the private company accepts by invitation or renews deposits from the public, other than
from its members or directors and their relatives, than the private company will become a public
company, the day it accepts the deposits.
Conversion by choice:
A private company may be its own choice becomes a public company. The steps necessary for this
purpose are as follows:
Special Resolution: A private company desiring to become public company must pass a special
resolution to this regard. A copy of resolution so passed must be filed with the Registrar of companies
within 30 days.
Increase in number of directors: If the numbers of directors are less than three, it should be raised to
three.
Increase in membership: If the numbers of member is less than 7, it should be raised to 7.
Raising of paid- up capital to the minimum, prescribed for public companies that is Rs. 5 Lakhs.

Memorandum of Association
Memorandum of Association is a legal document which describes the purpose for which the
company is formed. It defines the powers of the company and the conditions under which it
operates. It is a document that contains all the rules and regulations that govern a company's
relations with the outside world.
It is mandatory for every company to have a Memorandum of Association which defines the scope of
its operations. Once prepared, the company cannot operate beyond the scope of the document. It
is a foundation on which the company is made. The entire structure of the company is detailed in
the Memorandum of Association.
The memorandum is a public document. Thus, if a person wants to enter into any contracts with the
company, all he has to do is pay the required fees to the Registrar of Companies and obtain the
Memorandum of Association. Through the Memorandum of Association he will get all the details of
the company. It is the duty of the person who indulges in any transactions with the company to know
about its memorandum.

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Section 2(56) of the Companies Act, 2013 defines Memorandum of Association.
All the alterations that are made in the memorandum from time to time will also be a part of
Memorandum of Association.

Object of registering a Memorandum of Association or MOA

Memorandum of Association is essential for registration of a company. Section 7(1)(a) of the Act
states that for incorporation of a company, Memorandum of Association and Articles of Association
of the company should be filed with the Registrar.

Articles of Association
The Companies Act, 2013 defines articles as the "articles of association of a company originally
framed, or as altered from time to time in pursuance of any previous company laws or of the
present." The Articles of Association of a company are that which prescribe the rules, regulations
and the bye-laws for the internal management of the company, the conduct of its business, and is
a document of paramount significance in the life of a company. The Articles of a company have often
been compared to a rule book of the company's working, that regulates the management and powers
of the company and its officers. It prescribes several details of the company's inner workings such
as the manner of making calls, director's/ employees qualifications, powers and duties of auditors, etc.

Prospectus

Prospectus means any notice, circular, advertisement or any other communication, inviting
offers from the public for the subscription or purchase of any shares or debentures, inviting deposits
from the public other than deposits invited by a banking company or a financial institution approved
by the Government described as prospectus.

Prospectus is released by Company to inform the public and investors of the various securities that
are available. These documents describe about mutual funds, bonds, stocks and other forms of
investments offered by the company. A prospectus is generally accompanied by basic performance
and financial information about the company. Prospectus is a formal legal document, which is
required by and filed with the SEBI (Stock and Exchange Board of India) that provides details about
an investment offering for sale to the public.

Which Company are required to issue Prospectus

● Every Public Listed Company who intends to offer shares or debentures of the company to the
public.

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● Every private company who ceases to be a private company and converts into a public company
and intends to offer shares or debentures of the company to the public.

Requirement of a Prospectus - A document would be considered a prospectus only if it meets the

following requirements -

● It should be in writing.
● It should be issued by or on behalf of a body corporate.
● It should be issued to public.
● It should contain invitation to public for making deposits or for subscription of shares in or
debentures of a body corporate.

Contents of Prospectus (Section – 26)

It shall be dated and signed and shall contain the following things:

Every prospectus issued by or on behalf of a public company either with reference to its formation or
subsequently, or by or on behalf of any person who is or has been engaged or interested in the
formation of a public company, shall be dated and signed and shall state the following information,
namely:

● Names and addresses of the registered office of the Company, Company Secretary, Chief
Financial Officer, Auditors, legal advisers, bankers, trustees.
● Dates of opening and closing of the issue.
● A statement of separate bank account by the Board of Directors.
● Details about underwriting of the issue.
● Consent of the directors, auditors, bankers to the issue, expert's opinion, if any.
● Procedure and time schedule for allotment and issue of securities.
● Capital structure of the company in the prescribed manner.
● Main objects of public offer and terms of the present issue.
● Present business of the company and its location.

Types of Prospectus - 4 Types

(A) ABRIDGED PROSPECTUS

According to Sec. 2(1) of the Companies Act of 1956, a company cannot issue applications for issue
of share or debentures. It cannot do so if it does not contain the salient features of the prospectus of

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the memorandum. This is known as Abridged prospectus'. In other words abridged prospectus is a one
that contains the salient features of the memorandum of the prospectus.

(B) RED HERRING PROSPECTUS

A red herring prospectus, as a first or preliminary prospectus, is a document submitted by a company

(issuer) as part of a public offering of securities (either stocks or bonds).

A red herring prospectus is issued to potential investors, but does not have complete particulars on the
price of the securities offered and quantum of securities to be issued. The front page of the
prospectus displays a bold red disclaimer stating that information in the prospectus is not
complete and may be changed, and that the securities may not be sold until the registration
statement, filed with the market regulator, is effective. Potential investors may not place buy
orders for the security, based solely on the information contained within the preliminary prospectus.
Those investors may, however, express an "indication of interest" in the offering, provided that they
have received a copy of the red herring at least 48 hours prior to the public sale. After the registration
statement becomes effective, and the stock is offered to the public, indications of interest may be
converted to purchase orders, at the buyer's discretion. The final prospectus must then be promptly
delivered to the buyer.

(C) SHELF PROSPECTUS

(1) Any class or classes of companies, as the Securities and Exchange Board may provide by
regulations in this behalf, may file a shelf prospectus with the Registrar at the stage of the first offer of
securities included therein which shall indicate a period not exceeding one year as the period of
validity of such prospectus which shall commence from the date of opening of the first offer of
securities under that prospectus, and in respect of a second or subsequent offer of such securities
issued during the period of validity of that prospectus, no further prospectus is required.

(2) A company filing a shelf prospectus shall be required to file an information memorandum
containing all material facts relating to new charges created, changes in the financial position of the
company as have occurred between the first offer of securities or the previous offer of securities and
the succeeding offer of securities and such other changes as may be prescribed, with the Registrar
within the prescribed time, prior to the issue of a second or subsequent offer of securities under the
shelf prospectus.

(D) DEEMED PROSPECTUS

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Section-25 provides that where a company allots or agrees to allot any shares or debentures with a
view to these being offered for sale to the public, any document by which the offer of sale to the
public is made, shall for all purposes be deemed to be a prospectus issued by the company.

Directors of a Company

Definition - As per Section 2(34) of Companies Act 2013 Director means a director appointed to the
Board of a Company. A director is a person appointed to perform the duties and functions of director
of a company in accordance with the provisions of the Companies Act, 2013.

Section 2 (10) of the Companies Act, 2013 defined that “Board of Directors" or "Board", in relation
to a company, means the collective body of the directors of the company

Responsibility - The board of directors of a company is primarily responsible for:

● determining the company's strategic objectives and policies;

● monitoring progress towards achieving the objectives and policies;
● appointing senior management;
● accounting for the company's activities to relevant parties, e.g., shareholders.

Minimum Directors Required in Company -

● One Person Company - One Director.

● Private Limited Company - Two Directors.
● Public Limited Company - Three Directors.

Maximum 15 directors can be appointed in any format of Company (OPC, Public, Private). Bypassing
Special Resolution Company can increase the number of Directors beyond 15. Out of appointed
directors one director should be resident in India for more than 182 days. in previous calendar year.

Types of Directors

1. Residential Director - As per Section 149(3) of Companies Act,2013 every company shall at one
director who has stayed in India for a total Period of not less than 182 days in the Previous calendar
year.

2. Independent Director - As per section 149(6) an independent director in relation to a company,

means a director other than a Managing Director, Whole Time Director or Nominee Director.

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Companies which have to appoint Independent Director -As per Rule 4 of Companies (Appointment
and Qualification of Directors) Rules, 2013 the following class of companies have to appoint at least
two independent directors:-

A Public Companies having Paid up Share Capital - Rs.10 Crores or More

B Public Companies having Turnover Rs.100 Crores or More

C Public Companies have total outstanding loans, debenture and deposits of Rs. 50 Crores

3. Small Shareholders Directors - A listed Company may have one director elected by small
shareholders. May appoint upon notice of not less than 1000 Shareholders or 1/10th of the total
shareholders, whichever is lower have a small shareholder director which elected form small
shareholder.

4. Women Director - As per Section 149 (1) (a) second provision requires certain categories of
companies to have At Least One-Woman director on the board. Such companies are any listed
company, and any public company having-

● Paid Up Capital of Rs. 100 crore or more, or

● Turnover of Rs. 300 crore or more.

5. Additional Directors - Any Individual can be appointed as Additional Directors by a company

under section 161(1) of the New Act.

6. Alternate Directors - As per Section 161(2) A company may appoint, if the articles confer such
power on company or a resolution is passed (if a Director is absent from India for at least three
months). Additionally, he will have to vacate the office, if and when the original Director returns to
India.

7. Shadow Director- A person, who is not appointed to the Board, but on whose directions the Board
is accustomed to act, is liable as a Director of the company, unless he or she is giving advice in his or
her professional capacity.

8. Nominee Directors - They can be appointed by certain shareholders, third parties through
contracts, lending public financial institutions or banks, or by the Central Government in case of
oppression or mismanagement.

9. Difference Between Executive and Non-Executive Director - An Executive Director can be

either a Whole- time Director of the company (i.e., one who devotes his whole time of working hours
to the company and has a significant personal interest in the company as his source of income), or a
Managing Director (i.e., one who is employed by the company as such and has substantial powers of
management over the affairs of the company subject to the superintendence, direction and control of

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the Board). In contrast, a non-executive Director is a Director who is neither a Whole-time Director
nor a Managing Director.

Meetings

● Every company shall hold the first meeting of the Board of Directors within thirty days of the
date of its incorporation and thereafter hold a minimum number of four meetings of its Board
of Directors every year in such a manner that not more than one hundred and twenty days shall
intervene between two consecutive meetings of the Board.
● A meeting of the Board shall be called by giving not less than seven days notice in writing to
every director at his address registered with the company and such notice shall be sent by hand.
delivery or by post or by electronic means.
● The participation of directors in a meeting of the Board may be either in person or through video
conferencing or other audio- visual means, as may be prescribed, which are capable of
recording and recognizing the participation of the directors and of recording and storing the
proceedings of such meetings along with date and time.
● Every officer of the company whose duty is to give notice under this section and who fails to do
so shall be liable to a penalty of twenty-five thousand rupees.
● A One Person Company, small company shall be deemed to have complied with the provisions.
of this section if at least one meeting of the Board of Directors has been conducted in each
half of a calendar year and the gap between the two meetings is not less than ninety days.

Meeting Quorum

The quorum for a meeting of the Board of Directors of a company shall be one-third of its total
strength or two directors, whichever is higher, and the participation of the directors by video.
conferencing or by other audio- visual means shall also be counted for the purposes of quorum.

WINDING UP OF A COMPANY

MEANING

Winding up of a company is a process whereby its life is ended and its property administrated for the
benefits of its creditors and members. An administrator called liquidator is appointed and he takes

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control of the company, collects its assets, pays its debts and finally distributes any surplus among the
members in accordance with their rights.

MODES OF WINDING UP

A company can be wound up in any of the following ways;

1. Compulsory winding up under Tribunal.

2. Voluntary winding up.

COMPULSORY WINDING UP UNDER TRIBUNAL

The cases in which a company may be wound up by the tribunal are given in Section 433. They are as
follows:

● Special resolution of the company.

● Default in Holding Statutory Meeting.
● Not to Commence business in Time.
● Reduction in Number of Members below minimum.
● Inability to pay debts.

PETITION FOR WINDING UP

● By the company.
● By any creditor or creditors.
● By any contributory.
● By Registrar.
● By Central government.

COMPANY LIQUIDATOR

A company liquidator is a person who realise the asset of the company and make payments to the
creditors and contributors out of the process of realised assets appointed from a panel by the central
government.

PROCEDURE:

● Petition.
● Order by tribunal.
● Notice to company and Appointment of Provisional Liquidator.
● Issue of directions to company.

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● Filing objections and a statement of affairs.
● Appointment of company Liquidator.
● Intimation to Company liquidator and Registrar.
● Endorsement in records of company and notification in Gazette and to stock. Exchange.
● Winding Up committee and its report.
● Appointment to Advisory Committee.

CONSEQUENCES OF WINDING UP ORDER

● Intimation to company liquidator and registrar.

● Registrar to perform certain duties.
● Directors to submit books of accounts to the liquidator within 30 days.
● Custody of company's properties to company liquidator.
● Board's powers come to an end.
● Monthly report by liquidator.
● Statement as to winding up on document.

REPORT BY COMPANY LIQUIDATOR:

● Report within 60 days

● Contents of the report
● nature and details of asset
● amount of capital issued
● debts due to the company
● details of legal cases filed by or against company
● Any other report, if he thinks fit to make

TRIBUNAL'S DIRECTIONS ON REPORT

● Fixing time limit for winding up

● Order for sale of company or its assets
● Order for investigation
● Any other order

VOLUNTARY WINDING UP

According to Companies Act, 2013 voluntary winding up may take place only with the consent of
both members as well as the creditors. For this, members are required to pass an appropriate
resolution. Thereafter, two-third in value of the creditors are also required to give their consent to
such resolution.

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CONDITIONS OF VOLU. WINDING UP

● Declaration of Solvency.
● Resolution at General meeting.
● Resolution at Creditor's meeting.
● Delivery of Declaration and Resolution to Registrar
● Publication of Resolution.

COMPANY LIQUIDATOR

● Appointment and Fee

● Declaration by company liquidator
● Notice of appointment by Registrar
● Removal and filling vacancy

DUTIES AND POWERS

● To perform functions and duties determined by company or creditors.

● To settle list of creditors.
● Maintain books of accounts.
● Making final winding up report.
● To distribute property.

E-Governance

● E-Governance have authentication & legal recognition under IT Act 2000.

● Usage of Information & Communication Technology (ICT) by Government to provide &
facilitate government services, exchange of information, communication, transactions &
integration of various standalone systems and services for enhancing governance.
● Example: Digital India initiative, Aadhaar, National Portal of India, [Link], DBT through
JAM, UMANG to access government services, Digital Locker, E-Filling of taxes, digital land
management systems, E-Parivahan, E-Panchayat, E-Court.
● E-Governance is basically a move towards SMART governance implying: simple, moral,
accountable, responsive and transparent governance.
● 4 Stages of E-governance: Presence > Interaction > Transaction > Transformation

4 kinds of interactions in e-governance:

● Government-to-Citizen (G2C)

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● Government-to-Business (G2B)
● Government-to-Employee (G2E)
● Government-to-Government (G2G)
● E-governance raises the transparency, accountability, efficiency, and effectiveness and

inclusiveness in the governing process in terms of reliable access to the information within

government, between government, national, state, municipal, and local level governments,

citizens, and businesses and empowers business.

Role of engineers in E-Governance

● Role of engineer is continuing reshaped according to the new challenges and necessities
implicated by specialized disciplines on the areas of E-governance.
● The role of engineers in the field of E-governance is focus on identifying the needs of the
public and to design the process which is more user friendly, secured and fast.
● Some of the guiding principles for reforming E-governance with the help of technology are:
o Form simplification and field reduction.
o Online applications and tracking
o Online repositories
o Integration of services and platforms like DBT, JAM, Payment gateway
o Security & accessibility of Databases and information in electronic form

Need for reformed engineering serving at Union and State level

● To solve the problems in future will need sufficient understanding of more than one area.
● Sustainable development of nation will need integrated understanding of user, society,
environment & technology.
● To reform in engineering serving need:
o Focus of Engineering in interdisciplinary
o Branchless technological development
o Need for new skills under Atmanirbhar Bharat
o Development of a vibrant start-up ecosystem
o Need to move to a Research Ecosystem
o Development of ICT

Role of I.T. professionals in Judiciary

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● With help of IT Professionals, Enormous problems being faced by the judiciary due to arrears,

backlogs, and delays can be solved by the introduction of automation in Judiciary as E-Court.

● Case Management, File Management, and Docket Management will be vastly improved by

resorting to the use of information technology.

● National Informatics Centre start the process of computerization in Supreme Court in 1990.
● In May 2020, Supreme Court introduced a new system of e-filing & Al enabled referencing.
● IT professional can perform the role in judiciary to improve Case listing system, concept of

video-conferencing for hearing, Evidence in digital form, Cyber forensics science & maintain.

digital record.

Problem of Alienation & Secessionism in few states creating hurdles in

Industrial development

● Progress of Industrial development need peace in region.

● Alienation & Secessionism creating hurdles in industrial development in northeast states,
Kashmir, Chhattisgarh, Jharkhand, etc.
● Reason: Economic situation, Geography, Poor Connectivity, lack of opportunity, lack of
administration from British period, foreign interference, etc.
● Solution: Security & safety, Investment, local development, Educational opportunity, Job

opportunity, Local tourism, focusing on infrastructure like Road, Build trust with respect to

government policy, effective administration, E- Governance, empower local government,

effective social welfare, etc.

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