- Code of ethics SUBHOTAM MULTITRADE PVT LTD of distributors .
- Rules of conduct.
- Section 1: Introduction
- Section 2: Definitions
- Section 3: Becoming a Distributor
- Section 4: Responsibilities of all Distributors
- Section 5: Sponsorship Responsibilities
- Section 6: Preservation of the company sales and marketing plan
- Section 7: Business Support Materials
Code of Ethics of Company Distributors
As an owner of my company distributorship, I agree to conduct my company business according to the following ethical guidelines:
- As a basic guideline in my activities as a company distributor, I will endeavor to always treat others, as I would have them treat me.
- I will respect and follow this code of ethics and the rules of conduct observing not only letter but also the spirit there of.
- I will present company products and the company sales and marketing plan to all prospective distributors in a truthful and honest manner, and I will make sure to present only what is approved in official company publications.
- I will conduct myself in such a manner as to reflect only the highest standards of integrity, frankness and responsibility because I recognize that my conduct as a company distributor has far reaching effects.
- I will accept and carry out the responsibilities of a company distributor, as set forth in official company publications.
- In my company product sales activities, and for the purpose of protecting the company sales and marketing plan, I will use only company produced or company authorized publications.
RULES OF CONDUCT SECTION 1: INTRODUCTION
The company rules of conduct define and establish certain principles to be followed in the development and maintenance of a company distributorship and the rights, duties, and responsibilities of each company distributor.
The rules are designed to preserve the benefits available to all the distributors under Company Sales and Marketing Plan.
Company and its Distributors have a binding contractual relationship. The terms and conditions of this relationship are set forth in the SUBHOTAM MULTITRADE PVT LTD distributor application form, company sales and marketing plan. Company rules of conduct and other literature in the company business kit.
From time to time, the contents of these official documents may be amended by company will, prior to making any amendment to the official documents, submit to the distributor leadership for discussion, evaluation, and recommendation, proposed amendments other than those necessitated due to any government order, regulation or law. Final discussion making authority with respect to any amendment rests with company will notify all such amendments to the distributor by publication in SUBHOTAM MULTITRADE PVT LTD and Leadership Update.
SECTION 2: DEFINATIONS
In these rules unless the context otherwise require, the following words and phrases shall mean what is given below:
2.1.1- "SUBHOTAM MULTITRADE PVT. LTD." means a company registered under the company act, 1956 having its registered office at
2.1.2- Administrative office mean business means the aggregated rights, duties, and privileges of a distributor to conduct business with SUBHOTAM MULTITRADE PVT. LTD other distributors and third parties as provided in company business kit, including but not limited to the rules of conduct.
SUBHOTAM MULTITRADE PVT. LTD product means all goods and services, Including literature and other support or auxiliary materials, made available by company to distributors.
SUBHOTAM MULTITRADE PVT. LTD sales and marketing plan means the plan provided in the company business kit dealing company's, performance incentive system, sponsoring procedures and guidelines, requirements systems, procedures and policies regarding the presentation of company products, the company business and the management of an company organization as set forth I the company business kit s amended from the time to time by company and of which these rules are a part.
Company business kit means the company products and literature provided with the distributor application. As promotional product gift which are not for sale.
Business Support Material refers to the any privately produced materials, in both written and recorded form, and meetings which may be developed, produced, and distributed by distributors for the purpose of training and motivating the distributors in their business group as well as for the purpose of attracting prospects in becoming company distributors.
Business Group refers to that distributor and all his personally sponsored distributors, all those distributors sponsored by his personally sponsored distributors and so on down to and including those who have not sponsored anyone but excluding any direct distributors in the organization under him or any distributors in the business group of such direct distributors.
Business Year means a period beginning from April 1 and ending of March 31 of the following calendar.
Corporate authorization for means the form required to be filled in by proprietorship concern, partnership or a company desiring to become a distributor, which provide information about the business entity and the authorized signatories thereof
Cross group selling means that a distributor selling products to distributor in other lines of sponsorship.
Distributor application means form ES-ID application detailing the terms and condition of distributorship that is required to be filled in and submitted by a person desiring to become and company distributor.
Line of Sponsorship shall include in an ascending manner there sponsor of a distributor, the sponsor's sponsor and so forth and shall end at company.
Market means the territory of India as such additional territories as may be added by company from time to time.
Membership Year is a calendar year commencing from Jan 1 and ending on Dec 31.
Rules of Conduct mean these rules of conduct for distributor which can be changed or modified by company from time to time, as provided in these rules.
Sponsor means distributor who introduces to company an applicant for authorization as a distributor who in turn becomes a distributor by virtue of company's acceptance of his distributor application, "personally sponsored distributor" has a corresponding meaning.
All the terms used in these rules that are defined or explained in the company sales and marketing plan shall have the same meaning as given in the company sales and marketing plan.
Expect when the contents so requires, everything that is in the singular shall include the plural, and whatever refers to the masculine shall include the feminine.
The company sales and marketing plan shall be considered to be an integral part of these rules of conduct.
SECTION: 3 BECOMING A DISTRIBUTOR
- Registration free membership of Subhotam Multitrade Pvt. Ltd.
- Fill up, sign and deliver a distributor of company must.
3.1- application and kit an application to become a distributor of company must
1- Fill up, sign and file a distributor application for authorization to become a distributor and sell company products and
Possess all the promotional products
Distributorships may be taken up in individual capacity, as sole proprietorship concerns or partnership firms and companies
The opportunity to become a distributor is available to anyone regardless of race, sex, nationality and religious or political beliefs.
Without limiting company's rights, the following are requirements for becoming a distributor or renewing a company distributorship:
- A distributor must be at least 18 years of age.
- She/he must not have been suspended from his business due to mental or legal reasons
- She/he must not have been suspended from his current profession or business by any professional association, society or institution.
- She/he must not be in jail and or confined to any correctional institution of any kind.
Acceptance or rejection of application:
COMPANY RESERVES THE RIGHT TO ACCEPT OR REJECT ANY APPLICATION FORM WITHOUT MENTIONING ANY REASON.
Do you wish to transfer your company business to your minor children or old parents who cannot themselves presently operate any company distributors. You can do it during your lifetime or after death. Read on its simple just create a trust.
SUBHOTAM MULTITRADE PVT LTD company distributorship may be transferred to, and become part of the corpus of testamentary trust provided there has been compliance with certain requirements and conditions.
One of the advantages of building and company distributorship is that the owner may pass it on to his or her heirs as part of his or her estate. In order to accomplish that objective, he or she may wish to transfer the distributorship trust during his or her lifetime or arrange for it to be transferred to a testamentary trust after his or her death. The latter may be particularly desirable when his or her surviving heirs may be minors who are disqualified by law from operating the distributorship until they reach their majority. The trustee may also be a company distributor at the time the trust is created or takes effects.
In order to assure that the transfer of a distributorship to a trust may not result in unfavorable consequences company will require compliance with the following:
The creator of the trust must have been duly qualified and authorized distributorship at the time that the distributorship is transferred to the trust.
Frequently the beneficiary of the trust will be the spouse, child, grandchild, parents or siblings of the company distributor, or decreased distributor whose distributorship is to be transferred.
The trust instrument must not permit the beneficiaries to assign any beneficial interest in the trust.
The trustee must sign and file an application and receive a company distributor authorization.
An original copy of the trust instrument must accompany the application, and the trustee must promptly file with company any amendments or any documents which may vary the terms of the trust.
All trustee must execute on its behalf an irrevocable guarantee that the trustee will perform all the obligations and responsibilities of a distributor especially outlined in the code of ethics and rules of conduct as set forth from the time to time in official company literature.
The terms of the trust shall not be perpetual and shall not continue beyond the date necessary to protect the interest of those who are unable to act for themselves legally.
The trust will conduct only the business of a company distributorship and no other.
Invitations limited to two peoples:
Invitations for seminar, leadership seminar and other events organized by company will only be addressed to two individuals per company business who are registered with company in case of a sole proprietary concern the authorized representative indicated in the corporate authorization form will be the two individuals who will be eligible for such invitations.
SECTION 4: RESPONSIBILTIES OF ALL DISTRIBUTORSHIP:
Abide by the rules : at all the times distributors must adhere strictly to the guidelines, systems, procedures and polices mentioned in the literature accompanying the company business kit of which these rules of conduct and company sales and marketing plan are a part and may amendment thereto effected by company from time to time, provided the amendment or new rules of conduct are published in the SUBHOTAM MULTITRADE PVT LTD express magazine or in any other means of communication prior to their going into effect.
Cross group selling
A distributor in one line of sponsorship must buy all the products either directly form company or from his or her sponsor.
No distributor shall engage in cross group selling. In order to be eligible for the various monetary non-monetary benefits available through the company sales and marketing plan, a distributor in one line of sponsorship must buy all his company products and literature supplies directly from company. Company expressly forbids distributors to buy company products form distributors who are not their sponsor.
TRUTHFUL AND ACCURATE:
COMPLIANCE WITH APPLICABLE LAWS, REGULATIONS AND CODE:
- No distributor shall make false or exaggerated claims about quality, price, and use, content, grade etc. of company products or promotes produces that do not belong to company's if they did.
- No distributor shall make any offer to sell any company product which is not accurate and truthful as to price grade quality performance and availability.
- Make exaggerated product claims or non-guaranteed claims with regard to company products or products or products distributed by company.
- In any way whatsoever, represent incorrectly with regards to prices, quality, standard, grade, content, style or model, place of origin or availability of company products or product distributed by company.
- State that company products or products distributed by company back, approve, or present any feature as regards yields, accessories, uses or benefits that they do not have.
- In any way whatsoever act or present company, its product or the products company distributes in a fraudulent manner or to promote products that do not belong to company as if they did.
Distributors shall comply with all laws, regulations and codes that apply to operation of their company business wherever said company business may be conducted with the market, and they
must not conduct any activity that could jeopardize the reputation of the distributor and applicable laws , regulations and code vary from state to state in India, and over time, and company does not ensure or make representatives with respect to the quantity or extent of effort or expense required to comply with such laws , regulations and codes.
Deceptive or unlawful trade practices:
No distributors shall engage in any deceptive or unlawful trade practices. A deceptive or unlawful trade practice is one, which has been defined as such by any central, state, or local law or regulation.
UNLAWFUL BUSINESS ENTERPRISES OR ACTIVITIES:
DISTRIBUTOR MUST NOT ENGAGE IN ANY DECEPTIVE OR UNLAWFUL TRADE PRACTISE AS DEFINED BY ANY CENTRAL, STATE, OR LOCAL LAW OR REGULATION.
No distributor may operate any illegal or unlawful business enterprise, engage or participate in any illegal or unlawful business or be convicted of any illegal or unlawful activity
SECTION 5: SPONSORSHIP RESPONSIBILITIES
- Provide all distributors with an unaltered business kit.
- Abide by the code of ethics and rules of conduct in its true spirit.
- Train and motivate all distributors he or she has sponsored.
- Encourage his personally sponsored distributors to attend company meetings.
- Advice the distributor to follow company rules.
- Give advice on promotional activities.
In order to preserve the status and rights as a sponsor's sponsor must:
COMPANY BUSSINESS KIT:
Provide all the distributors that he sponsors with an unaltered business kit.
MAINTAIN GOOD STANDING:
Be a company distributor in good standing and meet all the distributors requirements as set forth in these rules.
In the event a sponsor ceases to be a qualified distributor, the rights to any distributor whom he or she has sponsored shall pass up to the next qualified distributor in his or her line of sponsorship.
Be able to train and motivate the distributors whom he or she sponsors with a minimum of assistance from his or her founder distributor. If he or she is unable to train his or her distributors properly he or she must make agreements with his or her direct distributor to have this done.
Not represent that there is an employment or agency relationship between him and the distributors which he sponsors.
ATTEND COMPANY MEETINGS:
Use his best efforts to encourage his personally sponsored distributors to attend company meetings and other functions.
FOLLOW THE RULES:
Use his best efforts to encourage his personally sponsored distributors to fully comply with the standards set forth in the rules and to study, use and carefully conduct their business in accordance with the law and official company publications and as suggested by his line of sponsorship.
Give advice concerning promotional activities carried on by his personally sponsored distributors to assure that they conform to company approved procedures and rules.
SECTION 6: PRESERVATION OF THE LINE OF SPONSORSHIP
Protection of the line of sponsorship: as used herein the scale of an ownership interest in distributorship, merging distributorships, or separating or dividing a distributorship, each inherently involve the assignment of the distributorship agreement Oran amendment.
Individual Transfers: Want to change your sponsor:
a. Obtain release from all upline upto founder company distributors.
b. Obtain acceptance from new sponsor and company.
Without limiting or restricting in any new company's powers and discretion under section 6.1 above. Any distributor who wants to change sponsor must submit a written request to company accompanied by
A written release signed by all the distributors in his line of sponsorship.
SECTION 7: BUSINESS SUPPORT MATERIAL
All the business support material provides by company are intellectual property of company. Any kind of delicacy or reprinting or any other use of this material without taking any prior permission by company will be considered as a criminal offence and it will be dealt seriously.
The person whosoever will get caught in any such cases will be considered as guilty and company reserves right to terminate or suspend his distributorship with immediate effect and can also be set a claim over him.
REVIEW BY COMPANY
Suspension of authorization until decision is made:
In this event that a distributor makes use of his right to appeal to the review panel the decision taken by company may be suspended until review has taken place and final decision has been taken by the review panel. During this period of suspension
1. The distributor is not allowed to conduct any company related activity.
2. The distributor shall not represent him as a company distributor.
3. Payments of any discounts, commissions or other monies payable to the business are computed but are held in escrow by company.
4. The distributor will not be invite to attend leadership seminars, diamond weekends or diamond seminars which may be held during this period, even though they may have qualifies for such business seminars prior to the period of suspension.
5. In the event any other decision taken by the review panel, company shall decide what will happen to the monies which were held in escrow.