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This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 November 2010
Can a full-time practicing chartered accountant be a director in another company? If not, what action can be taken against him?
12 November 2010
Hi
The Committee on Ethical Standards (CES) a non-standing Committee of the Institute, has examined the issue in detail. The Committee noted that in terms of Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949 a Chartered Accountant in practice can not engage (unless permitted by the Council so to engage) in any business or occupation other that the profession of Chartered Accountant but he can be a director of a Company (not being a managing director or whole time director) wherein he or any of his partners is not interested in such Company as an auditor. The Committee further noted that Public conscience is expected to be ahead of the law. Members, therefore, are expected to interpret the requirement as regards independence much more strictly than what the law requires and should not place themselves in positions which would either compromise or jeopardise their independence.
The Committee on Ethical Standards (CES) a non-standing Committee of the Institute, has examined the issue in detail. The Committee noted that in terms of Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949 a Chartered Accountant in practice can not engage (unless permitted by the Council so to engage) in any business or occupation other that the profession of Chartered Accountant but he can be a director of a Company (not being a managing director or whole time director) wherein he or any of his partners is not interested in such Company as an auditor. The Committee further noted that Public conscience is expected to be ahead of the law. Members, therefore, are expected to interpret the requirement as regards independence much more strictly than what the law requires and should not place themselves in positions which would either compromise or jeopardise their independence.
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