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The logistic system - Free Essay Example

Sample details Pages: 26 Words: 7892 Downloads: 5 Date added: 2017/06/26 Category Statistics Essay Did you like this example? CHAPTER 1 INTRODUCTION Historically, nation states have used military power as an instruement of state to achieve their national aims objectives. Towards that end, logistics along with strategy and tactics constitute an important sub division of the practical art of war fighting [1]. It therefore evolves upon students of military history to grasp the nuances of logistics, the way it affects the very essence of modern, contemporary war fighting philosophy. To begin with, it is not incorrect to say that the military activity known as logistics is probably as old as war itself. The word logistics is derived from the Greek adjective, logistikus meaning skilled in calculating. Research indicates that the first use of the word with reference to an organised military administrative service was by the French writer Jomini who served as a staff officer in Napoleons army. In 1838, he set down logistics as one of the six branches of the military art, the other five being statesmanship in its relationship to war, strategy or art of properly directing masses upon the theatre of war, grand tactics, engineering and minor tactics. He included the phrase it is the execution of strategic and tactical enterprises in his definition of logistics. In short, he devised a theory of war upon the trinity of strategy, ground tactics and logistics. He defined it as practical art of moving armies [2]. Don’t waste time! Our writers will create an original "The logistic system" essay for you Create order Based on the experience gained over the years, the term was redefined in 1968 wherein Logistics was referred to as the art and science of creating and maintaining a military capability. It consists of the process of determining requirements, acquisitions, distributions and maintenance of materials. As regards, our Indian manuals, they define logistics as the science of planning and carrying out the movement and maintenance of forces[3]. In todays usage, logistics is the function of providing all the material and services that a military force needs in Peace or War. Logistics, therefore, covers a wide canvas broadly includes all military activities, other than strategy and tactics. It would therefore, be prudent to refer to logistics as the bridge between our combat troops and the industry natural resources of our country. Logistics perse is a key element of Doctrine, too, which describes it as a process that consists of planning and executing the movement and sustenance of operating forces in executing a military strategy and operations. It is essentially moving, supplying and maintaining military forces and is basic to the ability of armies, fleets and air forces to operate indeed to exist. It has a direct bearing on a countrys capability to support a national strategy [4]. As the rapidly evolving modern battlefield milieu transforms into short, intense and technologically intensive wars, the over bearing need for a fool proof and highly responsive logistic organizational structure for Indian Army to meet the logistic imperatives of a short war cannot be over emphasized. Our existing logistics system has been inherited from the British. Though the logistic system in general and the logistic organisation in particular have been subjected to numerous improvements and changes over the last six decades, the logistic system perse has failed to evolve with changing times and has more or less retained its archaic character. The major, Mathew[5] reason for the antiquated character of our logistic system is the flawed organisational structure which inhibits and precludes optimum utilisation of our well developed and vast national logistic capacities. Restructuring of our existing defence logistics organisation, therefore, is a pre-requisite to restructure our logistic system to meet the logistic imperatives of a short war. CHAPTER II METHODOLOGY Statement of the Problem To study and analyse the existing defence logistics organisation and to ascertain its suitability to meet the logistics imperatives of a short war. Hypothesis Our existing defence logistics organization is based on archaic concepts and will not be able to deliver adequately in a short war. Scope The scope of this study is restricted to analysis of the existing defence logistics organisation and to suggest a viable and responsive organisational structure that can meet the logistics imperatives of a short war. Methods of Data Collection. The data and information has been gathered from books, journals, periodicals, internet sites and also from own exposure and experience. The bibliography of sources is appended at the end of the text. CHAPTER III LIMITED / SHORT WAR IN THE INDIAN CONTEXT AND ITS IMPERATIVES War has been the single most important instruement by which most of the great facts of human history have been accomplished and maintained. It has been used as an instruement against aggression as also as an instruement of aggression itself. It has played the most dominant role in nearly all important crisis of humankind ; it has been used to achieve liberty, to ensure democracy as also in building great empires and in enforcing dictatorships. The term war today has come to include many more kinds of hostile activities ; limited war, short war, total war, cold war, hot war, propaganda war, psychological war, ground war, space war as also various other low -intensity conflicts such as guerilla war and fourth generation warfare. Thus war today is not only far more horrifying and a far more complex affair, it has also come to pervade all other aspects of mans social life [6]. Limited War The concept of limited war goes back to the 19th century when miitary theorists underscored the determinative relationship between political ends and military means. Both 19th century theorist Clausewitz and his 20th century successor Liddell Hart were committed advocates of the use of limited war or limited force as opposed to total war. In the 19th century, when concepts of blitzkrieg and wars of annihilation dominated military thoughts and policies, Clausewitz opposed such concepts. He stated, Political objectives, as the original motives of the war, should be the standard for determining both the aim of the military force and also the aim of effort to be made. With the advancement in automatic warfare in the middle of World War II, Liddell Hart realised that because of the destructive nature of the weapons, wars should be limited; however, he did not advocate limited war as a strategy. Later after the development of nuclear weapons, Liddell Hart came up with the concept of limite d war. He said, Where both sides possess atomic power, total war makes nonsense and any unlimited war waged with atomic power would make worse than nonsense; it would be mutually suicidal. He goes on to say any total war, or even the preparation for it, is likely to carry more evils in its train, without bearing any good promise in the event of victory [7]. Robert E Osgood defined limited war as A limited war is one in which the belligerents restrict the purpose for which they fight to concrete, well defined objectives that do not demand the utmost military effort of which the belligerents are capable and that can be accommodated in a negotiated settlement. The battle is confined to a local geographical area and directed against selected targets primarily those of direct military importance. It permits their economic, social and political patterns of existence to continue without serious disruption. In another study, Osgood defines limited war as a war that was to be fought for ends far short of the complete subordination of one states will to anothers using means that involve far less than the total military resources of the belligerents and leave the civilian life and the armed forces of the belligerents largely intact. Robert Osgood also admitted that limited war was not a uniform phenomena, it meant different things to different p eople. War could be limited in different ways and could be limited in some and not limited in others. For instance, a war limited in geographical terms may be unlimited in weapons employed or the targets involved. Similarly, a war may be limited for one of the adversaries yet unlimited in the eyes of the other [8]. Osgood while writing an epilogue on US experiences in Vietnam war, candidly confessed that even in nuclear age, a category of limited war exists which was still limited because of limitation of means. He examined limited war under three different categories of Central War, Local War and Unconventional war. While Central war involved use of nuclear weapons and was unacceptable, popularity of unconventional wars declined in US post Vietnam war. Hence, Osgood rated conventional local war as the most practical form of limited war though he did factor the contingencies which may arise and require other two categories to become operational [9]. Henry Kissinger, in Nuclear Weapons and Foreign Policy advocated that limited war might be a war confined to a defined geographical area, or war that does not utilize the entire available weapons system (such as refraining from the use of thermonuclear weapons). It may be a war which utilizes entire weapons system but it limits its employment to specific targets [10]. Kissinger, the man behind the Nixon Administrations adoption of the strategy of Limited Nuclear Options popularly known as Schlesinger Doctrine defined limited war as a war fought for specific political objectives which, by their very existence, led to establish a relationship between the force employed and the goal to be attained. It reflects an attempt to affect the opponents will, not to crush it, to make the conditions to be imposed seem more attractive than continued resistance to strive for specific goals and not for complete annihilation [11]. Kissinger , nevertheless, propogated a limited nuclear war strategy which came into conflict with the arguments of known proponets of limited war like Osgood and William Kaufmann, then the greatest critic of limited nuclear war. Kaufmann, a Yale University scholar and the brain behind the McMamara Strategy of flexible response, advocated keeping the war limited and its escalation under control. A more apt definition of limited war in line with contemporary thought process and environment is An armed conflict in which at least one protagonist intentionally restricts his objectives and/or means to accomplish those objectives. Intentional restriction can be self imposed or induced by an opponent or another nation or nations or organizations [12]. Limited war is also defined as a military encounter in which the two warring sides see each other on opposing sides and in which the effort of each falls short of the attempt to use all of its power to destroy the other [13]. Beyond doubt, limitation in warfare has always been impressed upon on the grounds of either morality or other limitations of resources and technology. However, with the advent of nuclear weapons on the one hand and of irreconciliable ideologies on the other, limitation in warfare had become a matter of necessity if the war was to sustain its traditional role of being an instruement of politics. And it is here that the strategy of limited war which seeks to preserve the eternal values of primacy of politics and economy of force even in the nuclear age has assumed supreme importance. Limited war framework does not include wars involving non-nuclear states. Instead, limited wars are conflicts in which vital interests of the nuclear powers are directly or indirectly involved and in which, therefore, the threat of their expansion into a Total War remains omnipresent imminent. Hence, it is this massive and deliberate hobbling of their infinite power by nuclear weapon powers that qualifies a conflict as limited war. Such wars have also been termed as Short Wars and , as seen in numerous conflicts since second World War II, have retained their pre-eminence as the most acceptable category of war in the contemporary nuclear age. The US and the Soviet Union, the two nuclear superpowers in cold war era, had the responsibility to not only ensure limitation of conflicts that involved dangers of exploding into a nuclear war but also to modify its war fighting doctrines to address the imperatives of intense short wars, which were likely to manifest in the nuclear enviornment. However, as the Soviet Union disintegrated, it enjoined on the US to effect a major shift in US war fighting doctrines, wherein it adopted a short war specific logistic structure to support the challenges to US strategic security calculus. The logistic structure catered for highly intense and violent battlefield which would have exacted heavy casualties of men, material and equipment [14]. Limited War In Indian Context The Indian Limited War doctrine had its roots in formulation of our response to the Pakistani aggression in Kargil in 1999. As the Dec 2001 terrorist strike led to mobilization and protracted deployment in Operation Parakram, the Indian strategists offered Limited War as Indias answer to what in security theory is termed as the stability-instability paradox. In the recent years, the limited war theory has acquired highly placed proponents and gained its own doctrinal respectability amidst intense public debates amongst Indian think tanks. Paradoxically, the Pakistani strategic experts community calls our new strategy as a doctrinal response based on regurgitation of American limited war concept of nineteen fifties to threaten and deter Pakistan [15]. Evidently, the Indian perspective on limited conventional war in a nuclear backdrop has witnessed intense and vigorous debate with proponents and opponents posing questions and counter questions on the probability of a limited conventional war escalating into a nuclear conflagaration. Historically, nuclear weapons have engendered caution between adversarial states, wherein the 1969 Soviet-Sino Ussuri River clashes and Indo-Pak Kargil war remains the only two cases where two declared nuclear weapon states have engaged in armed conflict [16]. Therefore, the options for India, to pursue its limited war doctrine against Pakistan, is to either apply military power spaced out in time and concentrated in space or stretched out in space and concentrated in time. In other words, Indian defense doctrine and strategy must seek to apply calibrated force for punitive effect, which does not have a destabilizing effect on the adversary [17]. The nuclear factor in South Asia has rendered total war u nthinkable and limited war has become a necessity and must be central to the military input provided to the political leadership as an option to secure conflict limitation [18]. From the Pak perspective, a limited conventional war in the Indo- Pak context, can be defined as a war designed to achieve specified political objectives by applying compatible resources in a critical area and by acting smartly in a manner so as to leave bare minimum incentive for the opponent to react with nuclear weapons without taking definite risk to suffer more gains [19] . India, of late, is also forced to contend with an increasingly assertive and belligerent China which sees India as the single biggest rival to Chinese pre- eminence in Asia. As numerous strategic and defence experts have began to increase the probability of a Sino-Indian military conflagration in the Himalayas, an objective look at the time frame duration of such a conflict is also mandated. A limited war in our context would envisage a likely time frame of 21- 28 days. This time frame is a logical one as geo-political realities of an armed conflict between two nuclear states along with inherent limitations of developing states in terms of economy, war waging capability etc will preclude continuation of viable operations beyond four weeks. Moreover, in a Sino-Indian conflict, the restrictive campaigning season of approximately two months will be a determinant of duration of hostilities as both sides would need time to build up their forces in the post monsoon phase. Otherwise, too, all our past wars have unambiguously been short wars, limited in duration and objectives and the future wars in a nuclear backdrop are going to be anything but different. Yet, the future wars will be short but highly intense, destructive wars, exacting heavy casualties of men, material and equipment in fast, fluid mobile battles across the entire spectrum of conflict in a technologically drive n war fighting environment with far reaching implications for the war fighting philosophies of the adversaries. Logistics Imperatives The future battlefield in an intense, short war would necessitate a major transformation in our logistic support system with likely changes as under [20] :- Limited preparatory period and highly intense short duration war, necessitating an efficient mobilization plan. Self contained theatre based logistic support structure. High attrition rate due to greater accuracy and lethality of long range weapon systems necessitating forward positioning of a greater quantum of reserves. Greater emphasis on intra theatre regeneration and re-supply of logistics resources. A sense and respond system working on the push model. Adoption of information technology and decision support systems for total asset visibility and improved inventory management [21]. Need to improve survivability of logistics echelons by dispersion and area air defence cover where possible. Maximum reliance on air maintenance for maintenance of momentum especially in mountainous and desert terrains. Need for greater degree of logistics flexibility and redundancy in all theatres. Increased strain on logistics support system due to greater density of high technological equipment in battlefield. The diversity of terrain and our varied operational roles, required to be performed in highly intense, short duration wars pose enormous logistic challenges and demand a dynamic, new approach to include simple, flexible and efficient logistic plans, based on a technology driven, seamless and fully networked logistic system. Such an approach is required to integrate the logistic resources of the three services and to utilize the existing national infrastructure more profitably to improve our logistic efficiency and enhance our operational readiness [22]. CHAPTER IV ANALYSIS TO INCLUDE SHORTCOMINGS OF EXISTING LOGISTIC ORGANISATION Existing Defence Logistic System National Level In India, the Cabinet Committee on Security (CCS) is the highest decision making body on national security and strategic issues and is mandated to formulate policies for the defence of the country through the National Security Council ( NSC ) established in 1998. The Defence Minister, who is a member of the Cabinet Committee on Security, heads the Ministry of Defence ( MOD )and is responsible for implementing the governments defence policies. The defence policies get implemented through various committees functioning under the MOD [23]. Details of such committees are as under :- Defence Ministers Committee. Defence Ministers Production and Supply Committee. Defence Research and Development Council. Chiefs of Staff Committee. The Defence Ministers committee is responsible for defence planning while the Production and Supply Committee is most important as it covers the entire gamut of planning force levels and equipment planning related to availabilty of resources. The Chiefs of Staff Committee advise the Defence Minister on all military matters including logistics matters. Another committee called the Joint Adminstration Planning Committee (JAPC) having representatives from the Services, is placed under the Chiefs of Staff Committee to coordinate the logistics effort of the three services and to prepare a joint adminstration plan to supplement and support the overall mobilisation and operational plan evolved by the Joint Planning Committee ( JPC ) [24]. Army Logistics At Army Headquarters level, the agencies responsibile for providing logistics are the Adjutant General (AG), Quartermaster general (QMG), Master General of Ordnance (MGO) and Engineering-in-Chief (E-in-C). Basically the existing system is influenced by what was primarily inherited from the British Army. In the present organization, the supply and transport are under the QMG while Ordnance and EME are with the MGO and the Medical services have been placed under the AG. Moreover, selection and introduction of any new equipment though a joint responsibility, is with the Weapons and Equipment (WE) Directorate while maintenance of such equipment is a logistic function. In order to coordinate various branches and to ensure smooth flow, Directorate General Operational Logistics (DGOL) has been created. However, the management and control of the logistic services has not been brought under a unified single management or control, which gives rise to a number of intra-service logistical proble ms , thereby making the task of DGOL difficult [25]. Utilisation of army budget also is a problem area as the QMG Branch, which is responsible for large portion of Armys logistic planning, spends almost two-fifths of the army budget [26]. Thus the staff support is highly fragmented and does not approximate to the concept of integrated logistic support. IAF Logistics In IAF, the Logistics Branch handles all the equipment, materials management and distribution functions [27]. At the Air Headquarters, Air Officer-in-charge Maintenance ( AOM ) and Air Officer-in-charge administration ( AOA ) perform functions similar to those of the AG and the QMG in the army and partly similar to those of MGO. The AOM is assisted by four Additional Chiefs of Air Staff ( ACAS ) and Air Officer Logistics ( AOL ). The AOM to a large extent, provides single point management and control, wherein all specialist aspects of aircraft and equipment maintenance, overhaul and provisioning of stores in respect of each weapon system is looked after. In addition, the Initial Provisioning Committee and Maintenance Planning Teams provide logistic support for the newly introduced aircraft and weapon systems [28]. As regards, functions of AOA, he is assisted by two ACsAS and controls administrative aspects such as organization, works, accounts, legal ,medical, pay and provost. Navy Logistics In Navy, the Chief of Materials (COM ), a Principle Staff Officer to the Naval Chief at Naval Headquarters is responsible for entire Logistics management function in the Navy. He is assisted by the Controller of Logistics Support, who functions directly under the Chief of Material and deals with logistics support, clothing and victualling, armament supply and transport. In addition, there are two Assistant Chiefs of Materials aiding the Chief of Material to deal with Systems and DR. The Chief of Personnel (COP) heads the personnel branch and handles the medical services, recruitment, welfare and service conditions [29]. Analysis of the Existing System An analysis of the existing logistics system reveals some glaring and profound weaknesses which need to be redressed forthwith, in order to obviate potential adverse effects on our national security. The systemic weaknesses are pronounced in the fields of our logistic organization, both at national and services level and also in our failure to integrate our logistics system. The later, in fact, is a manifestation of a flawed organizational set up, being carried forward as a legacy of the colonial times. That so many past studies and writings by experts on the subject have failed to elicit the attention of the decision makers concerned is a sad reflection on our system and underlines a lack of overall national perspective for logistics. Further, it is apparent that the decision making structures at the national and services level are either inappropriate or simply unresponsive. Our logistic system, though has taken the obvious weaknesses and the shortcomings in its stride and has deli vered the goods in all wars fought by us in the post independence period. As such, it is of utmost importance that the obvious shortcomings are identified and addressed in order to integrate and optimize our logistics system as a true component of the National Effort, needed to respond to growing threats to our national security. Shortcomings of our Logistic System Organisational Weakness. At the top echelons of the MOD and Chiefs of Staff Committee ( COSC ), Defence by Committees is the accepted style of functioning, which is hardly conducive to efficient functioning. The Service chiefs are responsible for operational and logistic preparedness, but exercise little or no control over budget and provisioning of war like material, which remains the direct prerogative of the MOD. No National Level Organisation. Neither any national level organisation exists to oversee, coordinate and integrate our defence needs with national development nor any visible efforts are seen towards orienting national level logistical planning to our defence requirements. Lack of Common Logistic Doctrine. Despite jointness and integration being the buzzwords, the three services have failed to evolve a common logistics doctrine and philosophy of logistic support. Multiplicity of Logistic Agencies. There is a multiplicity in logistic agencies with no single authority responsible to the Chief of Army Staff ( COAS ) for logistics preparedness. Lack of centralized logistic support encourages duplication and wasteful expenditure. Multiple Procurement Agencies. Multiple procurement agencies in the services with lack of interaction, work against the principle of economy and lead to increased costs. Lack of Standardisation and Codification . It leads to duplication and high inventories. Multiple stocking echelons ,too, lead to a high level of stocking and is compounded due to lack of an integrated systems approach to determine stock levels. A vast range of assorted equipment, both imported and indigenous, has only exacerbated the problems of providing effective logistics backup [30]. Inventory Automation. Despite commonality of procedures, separate inventory automation has been undertaken by all three services, thus violating the administration principal of economy. Private Sector Involvement in Defence Research and Development. Despite the dynamic changes ushered by Defence Procurement Procedure 2005 2009, the private sector involvement in defence research development and defence production has not reached the desired levels. Attitudinal Change towards logistics, In Indian Army, an attitude has been prevalent for long, wherein logistics consideration in an operational plan are invariably given short shrift under the mistaken belief that a commanders tactical brilliance will some how compensate for inadequate consideration of logistics. The practice of not involving the logistics functionary in formulation of operational plans and then leaving the logistics planning entirely to logisticians is an inevitable recipe for disaster. Mobilisation. Mobilisation involves movement of men and material, wherein move by rail is carried out under the aegis of the Operational Rail Movement Plan (ORMP). Though the plan has been validated during OP VIJAY and OP PARAKRAM , concerns remain as regards the move and dispersion of strike and dual task formations as also the creation of requisite infrastructure for unloading / loading at railway stations concerned. Besides this, shortage of defence rolling stocks exist which will inhibit speedy mobilisation. Functioning of Ordnance Factories and the PSUs. Director General of Ordnance Factories and the Defence Public Sector Undertakings are major defence manufacturers. However, the present organisational structure precludes the optimum functioning of these organisations. Despite being an intrinsic part of Defence Ministers Production and Supply Committee ( DPSC ) , the Ordnance Factory Board ( OFB ) usually functions independently and in any case is not accountable to the Army or the defence, though the funding for the OFB is made from the Army Budget. As such, the Chief of Army Staff has very little say with respect to production and priority in delivery of items. The OFB items also have quality concerns especially in general stores and clothing items. Multiple Echelon System. The multiple echelon system which is existing as the chain of supply to the field formations need critical examination and reduction of echelons where feasible. Logistics support need not be the same across the board for all formations in the country, it can be tailor-made to meet the requirement of a particular sector, the terrain, the type of operations and equipment likely to operate in the area. This will cut down the time factor for move from source to the field formation. Push Model. The push model of pumping the logistics requirement of troops forward has been partially implemented in certain areas. It needs to be implemented across the board to ensure that the troops do not have to look over their shoulders for logistics support. CHAPTER V ANALYSIS OF CONTEMPORARY LOGISTICS ORGANISATION OF MAJOR MILITARY POWERS US System The US Armed Forces have a highly efficient and responsive logistic system, based on a dynamic organizational structure which has evolved to meet the ever changing operational requirements. The Defence Logistic Agency ( DLA ), a US Department of Defence ( DOD ) agency supplies the nations military services and several civilian agencies with the wide ranging logistical support for peacetime and wartime operations as well as emergency preparedness and humanitarian missions [31]. The DLA Director reports to the Under Secretary of Defence for Acquisition, Technology and Logistics through the Deputy Under Secretary of Defence ( Logistics and Material Readiness ).The DLA has evolved from Defence Supply Agency ( DSA ), which worked on the Single Manager Concept, wherein eight service agencies viz army, navy, air force etc handled one commodity each and became DSA supply centers. In 1977, DLA was established with the aim of centralizing the management of common military logistics support and to introduce uniform financial management practices. Later, the Goldwater-Nichols Act of 1986, for integration of US Armed Forces, identified DLA as a combat support agency. In Feb 2000, a new DLA organization structure part of an integrated plan called DLA 21 integrated all distribution depots of the military services into a single, unified material distribution system to reduce overhead costs and place them under DLA for management. It also created four major sub agencies under the DLA as under :- Def Logistics Support Command ( DLSC). Responsible for integration of logistics operations, supply chain management, readiness and contigency operations support. It is also responsible for procurement, storage and distribution of consumable parts, fuel, medical, subsistence and clothing and textile support. It has subsequently been reorganised as DLA Logistics Operations Directorate ( DLALO J-3 ). Def Contract Management Command. Responsible for DODs primary contract administration activity. Information Operations. Responsible for DLAs information technology activities to enhance e-commerce, logistics support system and document automation in support of military logistics. Financial Operations. Responsible for streamlining DLAs financial system for agencys future initiatives. UK System UK, too, has been a fore runner in initiation of defence reforms, which began with the Strategic Defence Review ( SDR ),1998. The Review included an in depth re-examinattion of the structure and performance of the then existing 44 defence agencies. The SDR created an appointment, Chief of Defence Logistics (CDL) wef Apr 1999 to head the Defence Logistics Organization ( DLO ). His mandate was to reorganize single service logistics support into a tri service logistics organization with improved responsiveness and accountability. The DLO began functioning from Apr 2000 and was the British answer to a unified logistics organization with the CDL exercising full budgetary and management responsibility for the single service support areas. The functions of procurement, repairs, storage and distribution, transportation, defence estate management and various other logistics functions were rationalized and resulted in efficiencies and reduction of costs [32]. On 02 Apr 2007, Defence Equipment and Support ( DE S ), a new procurement and support organization with in the UK MOD was formed. A new appointment of Chief of Defence Material ( CDM ), a four star officer, was created to head the MODs Defence Procurement Agency and the DLO and the CDM was directly made responsible to the Minister of State for Defence Equipment and Support. As regards the mission statement of DE S, it is to equip and support UK armed forces for operations now and in the future [33]. Russian System Since 1991, the Russian defence logistics services are known as Rear Services of the Armed forces of Russia. The Rear Services had its origins in the rear or logistical service of the Armed Forces of the USSR, which was created simultaneously with the Soviet Army. Traditionally, the rear of the Armed Forces consisted of the logistical service, with its special logistical units, subunits and establishments, and combat units holding integral logistics reserves as an organizational component. Also, the logistical service has always been a link between the armed forces and the national economy of the country[34]. In present times, the logistical service is responsible for food, clothing and military equipment supplies, maintenance, storage and distribution. It is headed by a Chief of Logistics, also called as Deputy Minister of Defence and compromises of the HQs, nine central directorates, three specific services, comd and control bodies, territorial offices and organizations [35]. Chinese System The Chinese Peoples Liberation Army ( PLA ) had included logistic reform as a basic component of its comprehensive modernization programme which began 25 years ago. However, before looking at the organizational structure through which the PLA deals with logistical questions, it is important to understand the scope of what logistics typically entails. Logistics usually includes provisioning and supply of material such as food, water, uniforms, equipment, petroleum, oil, and lubricants (POL), ammunition, construction materials, transportation of finance; equipment maintenance, repair, research and development, testing, acquisition and disposal, and building and maintenance of facilities for troops in the field or in garrison. In contemporary Chinese military terminology all of these functions fall under the concept of comprehensive support, which includes the separate categories of logistics support and armament (or equipment) support [36]. The PLA has two separate but related systems to manage its comprehensive support needs. The first is the national-level General Logistics Department (GLD) which oversees logistics support, and the second is the General Armament (or Equipment) Department (GAD or GED) which has jurisdiction over armament support. The GLD system is responsible for providing the general purpose supplies all PLA units need, such as food, shelter, uniforms, and fuel, as well as transportation, medical, and financial support. The General Staff and General Political Departments complete the set of four General Headquarters Departments which are responsible to the Central Military Commission (CMC), the highest command authority in the Chinese government and communist party. Located in Beijing, the departments are responsible not only for oversight, but also for policy within their domains. As regards logistics reforms, the CMC enacted a program in Dec 1998 for logistics reform covering the under mentioned aspects :- Integration of logistics for the three services. Standardization of supply work to include centralized procurement. Conversion of officer perquisites into cash allowances (to pay for housing, insurance etc ). Outsourcing of support functions. Inculcate more professionalism and scientific inputs in logistics management. Improving mobile logistics support for units away from their bases. By 2000, the PLA formed Joint Logistics Departments (JLD) in all seven Military Region headquarters. In addition, joint logistics staff officers, who understand the needs of all services, are being trained and assigned to headquarters staffs. Accordingly, the PLA Air Force and Navy transferred responsibility for many depots, supply bases, hospitals, maintenance and repair units to the control of the Military Regions in which they are located. The JLDs, and their subordinate logistics sub departments, provide support functions common to all services, while supplies and support unique to a single service are provided through that services own separate General Armament (or Equipment) Department. Also, PLA reserve units, too, have undergone reforms wherein, a Reserve Logistics Support Brigade.has been established by each Military Region [37]. Hence, it is evident that despite a relatively late initiation, the CMC has been able to achieve integration of PLAs defence logistics system. Isreali System In Isreali Defense Forces ( IDF ), the Technological and Logistics Directorate in the General Staff is responsible for its logistics responses and tasks [38]. It has three main administrative services namely Logistic Corps, Medical Corps and Ordnance Corps. The Directorate centralizes the logistical activity in the IDF to include the transporting of supplies, shipments of fuel, construction, transport, the building of military bases and maintainenance of medical infrastructure. The Logistic support is based on the under mentioned principles : Centralised control. Allocation of strict priorities Maximum use of civil resources Distribution forward. Improvisation, intensive salvage and use of local and captured materials. Pakistani System Pakistan has a National Logistics Council (NLC), which is responsible for mobilising the entire nation during wartime, especially the transportation needs [39]. It has also reformed its defence logistics system by placing its logistics bases under a logistics grid system. A Chief of Logistic Corps, who is a Principal Staff Officer to the COAS is responsible for coordinating all logistics activities in the logistic areas. These logistic areas function directly under the General Headquarters and possess the the inherent flexibility to operate ahead and provide intimate logistic support to the combat forces. CHAPTER VI RECOMMENDATIONS Logistics Philosophy The threat perception, operational imperatives and logistics imperatives have already been analysed in Chapter III of this paper. In the backdrop of all the considerations so far, it is visualised that the Logistics Philosophy should be as follows:- Defence logistics must be integrated with the national infrastructure and national development plans together with integration at the inter services level. There should be centralised direction, co-ordination and control of complete gamut of logistics activity within the service under a Single Manager. Plans must exist for speedy mobilisation by optimising all means of transportation to cater for short warning period. Infrastructure in the private sector and dual use facilities available ex trade must be optimally exploited for outsourcing to reduce military logistics. Logistics organisation should be streamlined by minimising the layers and should be tailor made where feasible, with dual attributes of co-responsiveness and cost effectiveness. Logistics support structure in support of formations/units permanently deployed in defences should be tailor made to meet their specific requirements. For offensive formations, apart from making them self reliant for immediate battlefield requirements, tailor made logistics nodes should be suitably established for subsequent sustenance. To meet this requirement, there is a necessity to accordingly develop logistics infrastructure. Need for cost effective equipment management system, embracing the whole life cycle from concept to discard and disposal. Reduction in inventories to exercise economy through a system of outsourcing and by adopting modern inventory management techniques, including automation. Develop infrastructure in the Eastern Theatre to meet the high level threat from China beyond 2012. Infrastructural development must be an ongoing process commensurate with likely threat perspective. Logistics support system must absorb state of the art technologies and scientific management techniques to enhance logistics efficiency. To measure upto the logistics philosophy evolved, there is a necessity to reshape the existing logistics set up at all levels. The reshaping has to be thought off with special emphasis on the suitability to the Indian conditions, constraints and economy. The reshaping has been addressed in this chapter at the National level, MOD level, Army headquarters level down to division headquarters level. National Level A nations war waging ability is derived from its ability to mobilize and employ its economic and industrial resources. Being a national effort, prepration for war encompasses all facets of the countrys economic, infrastructural and technological activity. A dedicated body at the national level is therefore required to coordinate and integrate the vast gamut of defence needs into the countrys development plans. As various advanced military powers have already achieved integration of their defence logistics support with their national economies, it is essential that an organization like National Logistics Council ( NLC ) be established to function as the apex body for all defence logistics needs [40]. Keeping in view the government set up of our country, this apex body should be headed by the Defence Minister. Under him, apart from Chief of Defence Logistics ( CDL ), who should be common to all three services, there should be an additional secretary from each of the important ministries with functional responsibilities. The NLC should also have representatives from the Federation of Indian Chambers of Commerce and Industry ( FICCI ), Confedration of Indian Industries ( CII ) and also from organizations directly concerned with logistics infrastructure. This organization should be established as standing organization of permanent nature and should evolve five year logistic plans in consonance with the national five year plans. It should also evolve long term 10 to 15 year perspective plans. These short and long term perspective plans .should be dovetailed with Defence Services Perspective Plans and would facilitate inclusion of defence logistics and infrastructure develop as part of national development and commitment. The broad mission of the NLC would be to ensure optimum utilisation of national resources ; industrial mobilisation and achieving cost effectiveness. It will determine the broad frame work for building infrastructure for developmental and defence needs to meet the national objectives and contingencies. It will also formulate broad policy guidelines at a strategic level on areas including national industrial war effort, transportation infrastructure, energy use, strategic war reserves etc and will act as a coordinating agency between different functional ministeries [41]. Should a consensus on establishing NLC elude us, a Strategic Logistic Agency under the aegis of Planning Commission should be created. Such an organisation should be staffed by suitable civilian and services officers and will be responsible for coordination, perspective planning and integration of defence needs with national development goals [42]. Ministry of Defence ( MOD ) / Inter Service Level Our bureaucatic system has been inherited from the British, wherin MOD functions as a superior military headquarters and exercises final authority on all proposals, initiated by defence services. Though the long pending remodelling of higher defence control structure involving integration of the services headquarters with the MOD was carried out in 2004, it failed to address the key issues raised by the services. First, the Chiefs of three Services ought to be responsible for and manage their respective Service along with integrated finance, with out any approval by civil servants . Second, the Chiefs should have direct access to the minister. Also,the restructured MOD should have four segments each under COAS, the CNS, the CAS and the Defence Secretary. The Defence Secretary would be responsible for the budget including bulk allotment, procurement, inter ministerial matters, liaison with states, defence production organisations and their co-ordination, parliamentary questions, manag ement of tri-service organisations. All professional matters of the three services will be managed by the three chiefs as part of MOD. The Defence Minister will have four advisers dealing with him in their respective fields of responsibility. The Principle Secretary to the Minister should be a service officer. Co-ordination will be achieved by the Defence Ministers Committee. In the re-modelled structure, after the budget has been allocated and the overall plan has been approved, the Service Chiefs will have the powers to manage their budgets. It will not only entail considerable reduction in overly protracted decision making process but also allow optimum utilization of the somewhat excessive manpower currently employed in the ministry. To ensure continuity and as a measure of checks and balance, the system of the Army, the Navy and the Air Force Councils to be chaired by the minister with the service Chief concerned, PSO and Defence Secretary as members should be adopted. Cosmetic changes of appointing a few military officers in the MOD without basic changes in the responsibilities of the Defence Secretary and Chiefs will not work.[43] As experience has shown, above proposals for restructuring of MOD will most likely face resistance from well entrenched bureaucracy, hence, the least, that needs to be done is to empower the Service Chiefs with overall management of budget in consultation with integrated financial advisors, once the MOD carries out the yearly budget planning and firm allocations. Concurrently, it is proposed to establish an org called Def Lgs Agency on the lines of the US DLA and the erstwhile DLO in UK to coordinate and control the logistic requirements of three services. It will facilitate long overdue integration of our logistics system and also control all defence lgs orgs under the MOD such as DGQA, DRDO, defence PSUs and Ordnance Factories. The proposed org should function under the CDS ( presently the COSC ) and will be the sole interface on behalf of the three services with the National Lgs Council ( NLC ). The org will be staffed by service personnel possessing expertise in lgs mgt. Army Headquarters Level The inadequacies and shortcomings of our system have been most glaring on two counts ; firstly, in so far as no single functionary is responsible to the COAS for overall lgs preparation and secondly, the absence of an integrated logistics support system to support our war effort. To obviate the above shortcomings would involve firstly, integrating various services like Ordnance, Medical, Supplies, MES etc into an Army Logistics Corps and secondly, as stated earlier, a system where Army, Air Force and Navy are provided integrated lgs sp by creating a Defence Logistics Agency ( DLA ). The proposed Army Lgs Corps will bring all the services incl MES, Medical, entire procurement under one head to be nominated as Chief of lgs, who will work in direct concert with DGMO, plan the entire gamut of material support and will be resp to the Army Chief for overall lgs prep of the Army. Army Logistics Corps. An organization such as an Army Lgs Corps will be a dynamic org and will offer relative gains, somewhat offset by inevitable weaknesses. Advantages Single Manager Concept. User and Supplier has to interact with only one agency. Concentration of budget utilisation. Reduction in duplication. Reduction in administrative lead time and involvement of all supporting agencies. Improved indigenisation and vendor performance cells. Scope for reduction in logistics troops strength. The system would be a forerunner for an integrated system for the three services. Disadvantages Span of Control becomes large. High degree of co-ordination essential. Automated MIS is mandatory. It is therefore highly essential that a Chief of Logistics who will be a PSO to the COAS is created forthwith. He shall have under him all the service heads and all other logistics elements, who shall be subsequently amalgamated to constitute the Army Lgs Corps in a latest time frame not exceeding four years ie by year 2013. The creation of Chief of Logistics will allow implementation of the Single Manager Concept and will impart a professional and focused impetus to our ability to successfully meet the lgs imperatives of fighting short wars in a nuclear backdrop. A proposed organisation under the Chief of Logistics is recommended as under :- Maj MJS Syali, Integrated Logistic System for the Armed Forces, Trishul Vol X No 1, 1997, PP 33. http: // en.wikipedia.org/wiki/Isreali_Logistics_Corps on16 Dec 09 Army Head Quarters, Administration in War, Vol 1, p4 PM Mathew, Colonel, Logistics Perspectives For Armed Forces 2015, Defence Management Nov 1999-Apr 2000, PP 68-69. PM Mathew, Colonel, Logistics Perspectives For Armed Forces 2015, Defence Management Nov 1999-Apr 2000, PP 68-69. Swaran Singh, Limited War, PP 5. Khurshid Khan, Limited Nuclear War, Internet Article downloaded on 10 Dec 09. Robert Osgood Limited War : The Challenge to American Strategy, PP 1,2,13. Swaran Singh, Limited War, PP 56. Kissinger Nuc Wpns Foreign Policy pp Ibid 10. Robert Mcclintok, The Meaning Of Limited War. PP. 5 Morton H Halperin Limited War in a Nuc Age PP 2. James H Pold, General, The New Short War Strategy, Military review, Mar 1976. PP 59 Firdaus Ahmed. Chari Nuc Stabilty in South Asia, Manohar Publshs, 134, 142-146). Jasjit Singh Dynamics of Limited War Strategic Analysis Oct 2000. ) Chari / Firdaus Ahmed The Impetus Behind Ltd War, IPCS Jul 24, 2004, Article No 800. Khurshid Khan Article Internet downloaded 10 Dec 09. Indian Army Doctrine 2004 Article Downloaded from Internet Ibid 20. Col Ashok Kapur, Integrated Logistics System A Future Necessity , Combat Journal Aug 1991, PP 72. Brig Vinod Anand, Joint and Integrated Logistics System for the Defence Services, Strategic Analysis, Vol XXV, No 1 PP 89 Pramodh Sarin, Brig (Retd), Military Logistics, The Third Dimension. PP 359. Vinod Anand, , Brig (Retd), Joint and Integrated Logistics System for the Defence Services, Strategic Analysis, Vol XXV, No 1 PP 92. Air Book Air 1, Issued by DSSC PP 72,73. Pramodh Sarin, Brig, (Retd), Military Logistics, The Third Dimension. PP 361 Navy Book Navy 1, Issued by DSSC PP 8,11. Vinod Anand, , Brig (Retd), Joint and Integrated Logistics System for the Defence Services, Strategic Analysis, Vol XXV, No 1 PP 93. http: // www.GlobalSecurity.org on 16 Dec 09 Vinod Anand, , Brig (Retd), Joint and Integrated Logistics System for the Defence Services, Strategic Analysis, Vol XXV, No 1 PP 95. http: // en.wikipedia.org/wiki/Def_Forces on16 Dec 09 General of the Army SK Kurkotkin, Logistics of the Soviet Armed Forces, Soviet Military Review, No 8 1978, p.2 http: // www.mil.ru/eng/index.shtml on 16 Dec 09. https://www.jamestown.org/programs/chinabrief on 16 Dec 09. Ibid 35. http: //en..wikipedia.org/wiki/Isreali_Logistics_Corps on 16 Dec 09. Vinod Anand, , Brig (Retd), Joint and Integrated Logistics System for the Defence Services, Strategic Analysis, Vol XXV, No 1 PP 95. Brig Vinod Anand, Joint and Integrated Logistics System for the Defence Services, Strategic Analysis, Vol XXV, No 1 PP 101 VK Singh, Col, Managing Change : Strategy for Defence Logistics, Defence Management, Apr 2007, PP41. Pramodh Sarin, Brig, (Retd), Military Logistics, The Third Dimension. PP 370. Vohra, Op Cit. PP. 493.

Sunday, December 22, 2019

Mahatma Gandhi The Most Complex Kind Of Bravery

To Stand Alone Mahatma Gandhi once remarked, â€Å"It is easy to stand in the crowd but it takes courage to stand alone,† (â€Å"Mahatma Gandhi Quotes†) The powerful words of Indian independence activist Gandhi ring in the ears of people around the world, even seventy-five years after his assassination. Throughout his life, people revered the Hindu leader for his peaceful, strong protests, as well as, his courage. Proceeding humbly in his life efforts, Gandhi the most complex kind of bravery as he led others to stand against unfair colonial practices in India. However, stretching even further than his bravery in the moment, Gandhi’s courage incited action all around the world, and encouraged people to see the power in non-violence(â€Å"Mohandas Gandhi†). In Harper Lee’s novel To Kill a Mockingbird, Scout observes a spectrum of courage in her town. Through the people of Maycomb, Scout’s definition of courage evolves from a simple defiance of one’s f ears, to facing human opposition, to standing up to an idea that strikes all of society, like the bravery of Gandhi. Her changing perception illustrates that courage is not just a personal victory, but often an impetus that changes the lives of a whole community. During Scout’s early childhood, her understanding of courage is simple and literal, and through her brother Jem, she learns that that courage often means nothing more than personal victory, conquering an intrinsic fear. For example, in an encounter with simple courage Scout watches

Saturday, December 14, 2019

So what exactly is sexism Free Essays

Sexism is the belief that rights and roles in ones society should be governed by ones sex. Historically, sexism has been male-driven and accompanied by a belief in the inferiority of women. The new opportunities becoming available to women and men through the feminist movement will be beneficial to both. We will write a custom essay sample on So what exactly is sexism or any similar topic only for you Order Now Men can become happier and more fulfilled human beings by challenging the old-fashioned rules of masculinity that embody the assumption of male superiority. Traditional masculinity includes many positive characteristics in which men take pride and find strength, but it also contains qualities that have limited and harmed hem. I strongly support the continuing struggle of women for full equality. I oppose such injustices to women as economic and legal discrimination, rape, domestic violence, sexual harassment, and many others. Women and men can and do work together as allies to change the injustices that have so often made them see one another as enemies. One of the strongest and deepest anxieties of many American men is their fear of homosexuality. This homophobia contributes directly to the many injustices experienced by gay, lesbian and bisexual persons, and is a debilitating restriction for many heterosexual men. We should call for an nd to all forms of discrimination based on sexual-affectional orientation, and for the creation of a gay affirmative society. The enduring injustice of racism, which like sexism has long divided humankind into unequal and isolated groups, is of particular concern to me. Racism touches all of us and remains a primary source of inequality and oppression in our society. I also acknowledge that many people are oppressed today because of their class, age, religion, and physical condition. I believe that such injustices are vitally connected to sexism, with its fundamental premise of unequal distribution of power. How to cite So what exactly is sexism, Essay examples

Friday, December 6, 2019

Principle Contemporary Corporate Governance-Myassignmenthelp.Com

Question: Discuss About The Principle Contemporary Corporate Governance? Answer: Introducation In Australia, the Corporation Act (Cth) is the legislative instrument which applies on the companies and through which different provisions are provided which help in the running of operations of the companies. A key part of this act relates to the duties of the directors, who run the operations of the company on behalf of the company. ASIC v Macdonald (No. 11) [2009] NSWSC 287 is a case where the contravention of duties of directors was decided by the Supreme Court of New South Wales. In this case, the court considered whether the officers and directors of James Hardie Industries Ltd (James) were in breach of duties covered under section 180(1) of this act. This section relates to the obligation of care and diligence and the matter was brought before the court regarding the boards approval and the release of a defective media management to Australian Securities Exchange, i.e., ASX (Hargovan, 2009). Through this discussion, an attempt has been made to detail this case based on the allegations which the Australian Securities and Investments Commission, i.e., ASIC made in this, in addition to the decision given by the court in this case. Background James was the holding company of the James Hardie Group (Group) which was responsible for the manufacturing and sale of asbestos products till 1937. Jsekarb Pty Ltd (Jsekarb) and James Hardie Coy Pty Ltd (Coy) were the two wholly owned subsidiaries of James for the period of 1937 to 1987 and they were also both the manufacturer and seller of asbestos products. In the starting days of February 2001, the board of James had created a foundation and named it Medical Research and Compensation Foundation. This foundation was created for managing and paying the claims which were raised for the asbestos related claims made against the Group. In connection to the creation of this foundation, the board approved a draft announcement for the ASX and this was also circulated in the general public through its release (Lavan, 2017). Concurrently, a covenant and indemnity deed was entered into by James with Coy and Jsekarb, due to which James was indemnified from all liabilities which were brought forward owing to the sale or manufacturing of asbestos products by James (Czoch and Mulder, 2010). The Group then released an ASX announcement which stated that the Foundation had asset, the value of which was $293 million and that these would be sufficient for fulfilling the purpose of the genuine claims which were expected to be raised from such people who had been harmed due to the asbestos products. During the press conference, it was claimed that Macdonald, who was the chief executive officer of James made a statement regarding the funds in the Foundation being sufficient for the purpose of the claims. The same theme was followed in the ASX announcements which were made in the weeks to come in relation to this Foundation. Though, the ASX announcements never covered a disclosure regarding the Deed (Norton Rose Fulbright, 2010). Upon the creation of this Foundation, a new company, which was holding of James, was formed, and this company was JHINV, and the place of incorporation of this company was the Netherlands. In 2002, overseas presentations were made by Macdonald, the defendant of this case study, in the matter of James and it was so represented that the Foundation had sufficient funds (Plessis, Hargovan and Bagaric, 2010). In 2007, the ASIC raised civil proceedings against James and JHNIV for the misleading and deceptive conduct, for the false statements which were made related to the securities and for the continuous disclosure failures (Czoch and Mulder, 2010). Breach Of Duties Section 180 of the Corporations Act, 2001 covers the provisions regarding duty of the accounting and the directors of the company regarding care and diligence. Under section 180(1), it has been stated that the individuals have to apply care and diligence in their work, when their powers are being utilized by them and when they are discharging their duties, as would be done in their place, by a reasonable/ rationale person who held their office in similar situation with same powers and duties (Federal Register of Legislation, 2017). If the provisions of section 180(1) are not fulfilled, the civil penalties covered under section 1317E become applicable, which gives the power to the court to make a declaration of contravention, pursuant to which, the ASIC can apply for a disqualification order as per section 206C or seek pecuniary penalties as per section 1317G (Austlii, 2017). The duty under this section is applied with the misleading and deceptive conduct of the directors where the directors have been given some crucial or significant information, which could result in a civil claim being made against the company in which they are the director or officer, owing to the deceptive or misleading conduct. This makes it obligatory for the directors to ensure diligence and care while releasing any information and also to ensure that the information which is released is not misleading or deceiving (Gadens, 2010). A similar duty can be seen in section 181, which requires the directors and officers of the company to use their powers and discharge their obligations in the best interest of the company, with good faith and lastly, for proper purpose (Department of the Premier and Cabinet, 2016). The breach of this section also attracts penalties under section 13177E. Decision Of Court Justice Gzell presided over this matter and gave his decision regarding each point in a specific manner. He stated that in connection to the draft announcements made to ASX, all the 7 ex non-executive directors, the General Counsel, the CEO and the CFO of James were in breach of section 180(1) as they had failed in ensuring that the draft announcement regarding the funds sufficiency of the Foundation was not deceiving or misleading regarding paying the compensation to the victims (Czoch and Mulder, 2010). In the matter of the deed, His Honour stated that the CEO and the General Counsel were in contravention of section 180(1) due to their failure in giving the proper advice to the board of the company appropriately, which could have allowed the Deed to be properly disclosed (Jacobson, 2009). With regards to the ASX Announcements, which had been properly approved, His Honour stated that section 180(1) had been contravened by the companys CEO, which was MacDonald, as he failed in ensuring that the made announcements were nether misleading nor deceptive. Along with this, the sections 995(2) and 999 of Corporations Act were also contravened due to the misleading and deceptive information being released under the ASX Announcements (Sixth Floor St James Hall Pty Limited, 2009). His Honour also looked into the presentations made by MacDonald which were deemed as a contravention of CEOs duty under section 180(1) as a result of making sure that these presentations were not misleading or deceptive. The new company, JHINV also contravened sections 1041E and 1041H as they were engaged in misleading and deceptive conduct with regards to the presentations made to ASX (Czoch and Mulder, 2010). His Honour also stated that the ASIC had failed in showing various allegations made towards the Group, its non-executive and the executive directors. Under these different allegations, one was related to the claim against MacDonald for the contravention of section 181, which was related to acting in good faith by the CEO (Czoch and Mulder, 2010). Till late July 2000, the court listened to the submission made by the parties of this case for the defendant to be exonerated pursuant to section 1317S and 1318 of the Corporations Act regarding the undertaken breaches and also for the type of penalty or sanction to be imposed over MacDonald (Austin, 2012). The ASIC submitted a contention to the Court which asked for the CEO of the company to be disqualified from running the affairs or managing any company for 12 to 16 years and the CEO to get a penalty as a fine, ranging between $1.47 million to $1.81 million. They also applied for the General Counsels disqualification from managing any company for 8 years, with a fine between $350,000 and $450,000. It was also proposed to ban all of the nonexecutive directors for 5 years and to be fined between $120,000 and $130,000. The CFO was also claimed to be disqualified from the management of company for 6 years minimum and to be fined in the range of $150,000 to $250,000. Lastly, the ASIC applied for 90% of the costs borne by them for bringing this case, to be jointly and severally be paid by the defendants of this case (Czoch and Mulder, 2010). ASIC also made a submission to the Court to consider the penalties which were to be applied on the defendants and to consider the matter of indemnity. Given that the Corporations Act, 2001 restricts the companies of the nation from indemnifying against civil penalties of such kind, the submission of ASIC was that some of the defendants could be indemnified by the foreign companies within the Group. The defendants applied to be exonerated from ASICs claims and contented the banning orders and also stated that the fine which the ASIC had applied for, were excessive in nature. The only exception to this was MacDonald as he had admitted that the contraventions had been serious in nature (Czoch and Mulder, 2010). Justice Gzell refused the exoneration of the previous members of board on 20th August 2009 and handed down the penalties in this case and provided these penalties: The General Counsel was disqualified for 7 years from management of any company, with a fine of $75,000 (Taylor, 2012). The CEO, i.e., MacDonald was disqualified for 15 years from management of any company, with a fine of $350,000. The Chief Financial Officer was disqualified for 5 years from management of any company, with a fine of $35,000. Individually, each of the non-executive directors was disqualified for 5 year period from management of any company, with a fine of $30,000 to be borne separately by each individual. The new company was also fined to the amount of $80,000 (Czech and Mulder, 2010). The decision given in this case was considered as a landmark one by ASIC with regards to the Australian corporate governance. This was because of the important guidance and direction provided to the boards with regards to the practical applicability of the scope and the content of the executives duties which were undertaken in a major matter related to the board and related to the disclosure of these in the market. Along with this, the guidance and direction related to the responsibility of the non-executive of the public companies when being asked about the consideration of boards strategic issues and for the approval of disclosure in market pertaining to the boards decisions (Austlii, 2009). Conclsuion In the previous parts, the case of ASIC v MacDonald was discussed where the breaches of director duties and that of the officers was the key matter, which resulted in disqualification order and pecuniary penalties being awarded against different parties. The civil proceedings which the ASIC started against James, the Group and the new company JHINV, the 7 ex non-executive directors, 3 former executives of James for the contraventions of different provisions of Corporations Act, and also for the approval and preparation of public statements were the background of the case being discussed in the previous segments of this discussion. The decision of this case highlighted the importance of the role of the directors, which not only includes executive, but also the non-executive directors of the company, in addition to t he senior executives of the companies, particularly with regards to the consideration and implementation of the strategic matters of the companies. Apart from the corporat e governance issues surrounding this case, the decision of this case broadened the focus which had been put over the senior executives who are just below the level of the board and upon the non executive directors. References Austin, R. (2012) The High Court decides the James Healthcare case. [Online] Minter Ellison. Available from: https://www.minterellison.com/files/Uploads/Documents/Publications/Alerts/NA_20120509_JamesHardieDecision.pdf [Accessed on: 22/09/17] Austlii. (2009) Australian Securities and Investments Commission v Macdonald (No 11) [2009] NSWSC 287 (23 April 2009). [Online] Austlii. Available from: https://www.austlii.edu.au/au/cases/nsw/NSWSC/2009/287.html [Accessed on: 22/09/17] Austlii. (2017) Corporations Act 2001 - Sect 180. [Online] Austlii. Available from: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s180.html [Accessed on: 22/09/17] Czoch, K., and Mulder, M. (2010) Australia: The James Hardie Decision: Australian Securities Investments Commission v Macdonald (No. 11) [2009] NSWSC 287. [Online] Mondaq. Available from: https://www.mondaq.com/australia/x/106690/Corporate+Governance/The+James+Hardie+Decision+Australian+Securities+Investments+Commission+v+Macdonald+No+11+2009+NSWSC+287 [Accessed on: 22/09/17] Department of the Premier and Cabinet. (2016) 7.3 Corporations Act 2001 (Cth) (the Corporations Act). [Online] Queensland Government. Available from: https://www.premiers.qld.gov.au/publications/categories/policies-and-codes/handbooks/welcome-aboard/member-duties/corp-act-2001-c.aspx [Accessed on: 22/09/17] Federal Register of Legislation. (2017) Corporations Act 2001. [Online] Federal Register of Legislation. Available from: https://www.legislation.gov.au/Details/C2013C00605 [Accessed on: 22/09/17] Gadens. (2010) Misleading and deceptive conduct in the corporate sphere. [Online] Gadens. Available from: https://www.gadens.com/publications/Pages/Misleading-and-deceptive-conduct-in-the-corporate-sphere.aspx [Accessed on: 22/09/17] Hargovan, A. (2009) Australian Securities and Investments Commission v Macdonald [No 11] Corporate Governance Lessons from James Hardie. Melbourne University Law Review, 33(3), pp. 984-1021. Jacobson, D. (2009) ASIC v James Hardie Decision: Company, Directors and Officers Were Misleading. [Online] Bright Law. Available from: https://www.brightlaw.com.au/asic-v-james-hardie-decision-company-directors-and-officers-were-misleading/ [Accessed on: 22/09/17] Lavan. (2017) The responsibility for continuous disclosure announcements in the light of James Hardie - Australian Securities and Investments Commission and Macdonald (No 11) [2009] NSWSC 287. [Online] Lavan. Available from: https://www.lavan.com.au/advice/banking_finance/the_responsibility_for_continuous_disclosure_announcements_in_the_light_of [Accessed on: 22/09/17] Norton Rose Fulbright. (2010) Insurance Financial Services Bulletin. [Online] Norton Rose Fulbright. Available from: https://www.nortonrosefulbright.com/knowledge/publications/30007/insurance-financial-services-bulletin#section12 [Accessed on: 22/09/17] Plessis, J.J.D., Hargovan, A., and Bagaric, M. (2010) Principles of Contemporary Corporate Governance. 2nd ed. Cambridge: Cambridge University Press, p. 59. Sixth Floor St James Hall Pty Limited. (2009) ASIC v Macdonald (No 11) [2009] NSWSC 287. [Online] Sixth Floor St James Hall Pty Limited. Available from: https://www.sixstjameshall.com.au/recent-cases/2016/7/14/australian-securities-and-investments-commission-v-macdonald-no-11-2009-nswsc-287 [Accessed on: 22/09/17] Taylor, T. (2012) James Hardie The final instalment NSW Court of Appeal disqualifies and penalises company officers. [Online] Holding Redlich. Available from: https://www.holdingredlich.com/corporate-commercial/james-hardie-the-final-instalment-nsw-court-of-appeal-disqualifies-and-penalises-company-officers [Accessed on: 22/09/17]