PowerPoint Presentation

Regulatory Environment

Regulatory Environment 7.5 hoursConstitutional framework; directive principles; fundamental rights; division of legislative process; regulations related to business firm registration; foreign investment; finance and investment; taxation; intellectual property rights; labor and consumer protection; corporate governance issues; an overview of Companies Act, 2006, Foreign Investment and Technology Transfer Act, 1992; Industrial Enterprise Act, 1992; Value Added Tax, 1996; Labor Act, 1992; Trade Union Act, 1992; Mines and Minerals Act, 1985; Patent Design and Trade Mark Act, 1965; and Copyright Act, 2002.

1. Westminster Model2. Bicameral Parliament3. Independent Judiciary4. Executives come from the Parliament5. Mixed Economy6. Human Rights are the fundamental rights

Constitutional Framework

(1) It shall be the chief objective of the State to promote conditions of welfare on the basis of the principles of an open society, by establishing a just system in all aspects of national life, including social, economic and political life, while at the same time protecting the lives, property, equality and liberty of the people.

(2) It shall be the objective of the State to maintain law and order and peace, protect and promote human rights, promote public welfare in the society, and create opportunities for maximum participation of the people through self-governance, while maintaining a system where people can reap the benefits of democracy.Directive Principles

(3) It shall be the political objective of the State to build a prosperous and advanced Nepal by institutionalizing democracy achieved as a result of the struggle of the Nepali people and by creating an environment wherein its benefits could be enjoyed.

(4) The fundamental economic objective of the State must be to give priority and protection to making the national economy independent, self-reliant and progressive by preventing the concentration of available resources and means of the country within a limited section of society, by making arrangements for equitable distribution of economic gains based on social justice, by making such provision as will prevent economic inequality and exploitation of any caste, gender, class, origin or individuals, and by giving priority and encouragement to national private and public enterprises.Directive Principles

(5) The social objective of the State shall be to establish and develop a healthy social life on the foundation of justice and morality, by eliminating all types of economic and social inequalities and by establishing harmony among diverse castes, tribes, religions, languages, races, communities and sects.

(6) The State shall, in its international relations, be guided by the objective of enhancing the dignity of the nation in the international arena by maintaining the sovereignty, integrity and independence of the country.Directive Principles

The Interim Constitution of Nepal comprises of a long list of human rights entrenched as fundamental rights. The term "Fundamental Rights" can be defined as the constitutionally guaranteed human rights. The reason to encode such rights in the Constitution is that they are not unduly violated by the state through any act of its own or alienated through any legislation. Constitutional provisions cannot be changed easily as other laws and they place constraints upon other laws too. The Interim Constitution has encoded 21 fundamental rights in part 3. Fundamental Rights

These rights are - right to freedom, right to equality, right against untouchability and racial discrimination, rights regarding publication, broadcasting and press, rights regarding environment and health, right to Education and cultural rights, rights regarding employment and social security, right to property, rights of women, right to social justice, rights of children, right to religion, rights regarding justice, right against preventive detention, right against torture, right to information, right to privacy, right against exploitation, right Regarding labour, right against exile, and right to constitutional remedy. Fundamental Rights

LAW?

Law

We should think of the law in more basic terms as rules that govern and guide actions and relations among and between persons, organizations, and governments.

Establishing StandardsThe law is a guidepost for minimally acceptable behavior in society. Maintaining OrderThe lawwhen enforcedprovides order consistent with societys guidelines.Resolving DisputesThe law provides a formal means for resolving disputesthe court system. Protecting Liberties and RightsProtect various liberties and rights from violations by persons, organizations, or government. Facilitate Business and Development WorkCreate conditions and encourage actionsFunctions and Purpose of Law

Legislative Process?(How a law is made)

Introduction of a BillGeneral Bill vs. Finance BillDiscussion on the BillMinistry of Law | Concerned Committee/s | Legislative Committee | Public or Outside the housePassing the Bill7 day notice | Simple Majority is neededAuthentication of the BillSpeaker of the House/PresidentOrdinancesWhen the parliament is not in session | If the President is convinced | Next session has to pass within 60 daysLegislative Process (Law Making Process in Nepal)

Policy?

Formal documented statement of intentions and actions of an organization/authority either to remove certain deficiencies or to improve the conditions in any particular area

Public Policy: whatever governments choose to do or not to do - Thomas Dye (1987)POLICY

Not a random act, rather a deliberate action

Approved by public representatives, applicable by state apparatus

Not a piece of legislation but has its own sanctity

Distinct from strategy to implement it

It could be a part of an overall development policy i.e. National Development Strategy or it could be a specific departmental policy i.e. Hydropower Development PolicyFeatures of a Policy

Legal/Constitutional Validity Internal Consistency External Consistency Technical Feasibility Resources Availability Financial Viability Economic Benefits Social Acceptance Political Commitment Environmental ComplianceFeatures of a Good Policy

Societal structural changesdemographic transition, economic transformation, social reengineering, globalization etc. may necessitate policy formulation Regime change new political elite may have new vision, mission and agenda for which new policies are needed Donors/world institutionstheir aid may be contingent upon certain policy changes, structural reformsSources of Policy Formulation

Global commitmentsstate enters into international conventions which normally need local policy formulation Pressure groupsindustrial ,agricultural lobbies, social causes advocacy groups can force state for this Court OrdersSuperior courts sometimes pass orders for formulating clear policies or review an existing policy while hearing any caseSources of Policy Formulation

A policy outlines what a government/government ministry hopes to achieve and the methods and principles it will use to achieve them. A policy document is not a law but it will often identify new laws needed to achieve its goals.

Laws set out standards, procedures and principles that must be followed. If a law is not followed, those responsible for breaking them can be prosecuted in court.

Difference between a law and a policy

1. Office of Prime Minister/Cabinet2. Concerned Ministry/Ministry of Law3. Parliamentary Committees4. The Parliament5. Social Organizations/Associations/NGOs6. International Organizations/Donors7. Interest Groups/Experts

Stakeholders of policies/laws/bylaws/rules/regulations

Highlights:

Companies Act, 2063 (2006)

Foreign Investment and Technology Transfer Act, 1992 (Group A, Roll 1-5) Value Added Tax, 1996 (Group B, Roll 6-10)Labor Act, 1992 and Trade Union Act, 1992 (Group C, Roll 11-15) Mines and Minerals Act, 1985 (Group D, Roll 16-20)Patent Design and Trade Mark Act, 1965 and Copyright Act, 2002. (Group E, Roll 21-25)Industrial Enterprise Act, 1992 (Group F, Roll 26-30)Conditions:Choose your group leader, make a power point presentation. everyone has to play a role during the presentation, each presentation will be of 10 minutes followed by a 2 minutes Q/A, will carry 10% marking) Relevant portals: http://www.lawcommission.gov.np/Surprise Test