Clause 4 of part-1 of first schedule to ca act
This query is : Resolved
17 January 2015
Can anyone explain what is the meaning of BOLD LETTERS PART of below sentence: Clause 4 of part 1 of sch I to CA Act: " A CA in practice is deemed guilty of proff misconduct if he enters into partnership with any person other than ca in practice or member of any other professional body having prescribed qualification INCLUDING A RESIDENT WHO BUT FOR HIS RESIDENCE ABROAD WOULD BE ENTITLED TO BE REGISTERED AS A MEMBER U/S 4(i)(v) ........ "
19 July 2024
In the context of Clause 4 of Part 1 of the First Schedule to the Chartered Accountants Act, 1949, the phrase "including a resident who but for his residence abroad would be entitled to be registered as a member u/s 4(i)(v)" refers to individuals who are residents abroad but meet the qualifications to be registered as a member of a professional body in India under Section 4(i)(v) of the Act.
Let's break down the clause for better understanding:
1. **Partnership Restriction**: The clause prohibits a Chartered Accountant (CA) in practice from entering into a partnership with any person who is not a CA in practice or a member of any other professional body with prescribed qualifications.
2. **Resident Abroad Clause**: It specifically includes within this restriction individuals who are residents abroad but who would otherwise qualify to be registered as a member under Section 4(i)(v) of the Chartered Accountants Act.
3. **Section 4(i)(v)**: This section likely defines the qualifications or criteria for membership in a professional body under the Act. Specifically, it outlines that even residents abroad who meet these qualifications are subject to the same partnership restrictions as outlined in Clause 4.
### Meaning of "Including a Resident Who But for His Residence Abroad Would Be Entitled to Be Registered":
- **Resident Abroad**: Refers to individuals who reside outside India.
- **Entitled to be Registered**: Individuals who meet the qualifications or criteria specified under Section 4(i)(v) of the Act.
- **Impact**: The clause ensures that even if such individuals reside abroad, they are still covered under the prohibition of entering into partnerships with CAs in practice unless they are also CAs or members of a recognized professional body.
### Practical Implications:
- This clause maintains the integrity and exclusivity of partnerships involving CAs in practice, restricting them to partnerships with other CAs or members of recognized professional bodies only.
- It prevents potential conflicts of interest and ensures that partnerships involving CAs are within a professional framework that upholds the standards set forth by the Act.
In essence, the bold part of the clause emphasizes that the restriction applies universally, including to individuals who reside abroad but meet the domestic qualifications for membership in a professional body under Indian law.
Let's break down the clause for better understanding:
1. **Partnership Restriction**: The clause prohibits a Chartered Accountant (CA) in practice from entering into a partnership with any person who is not a CA in practice or a member of any other professional body with prescribed qualifications.
2. **Resident Abroad Clause**: It specifically includes within this restriction individuals who are residents abroad but who would otherwise qualify to be registered as a member under Section 4(i)(v) of the Chartered Accountants Act.
3. **Section 4(i)(v)**: This section likely defines the qualifications or criteria for membership in a professional body under the Act. Specifically, it outlines that even residents abroad who meet these qualifications are subject to the same partnership restrictions as outlined in Clause 4.
### Meaning of "Including a Resident Who But for His Residence Abroad Would Be Entitled to Be Registered":
- **Resident Abroad**: Refers to individuals who reside outside India.
- **Entitled to be Registered**: Individuals who meet the qualifications or criteria specified under Section 4(i)(v) of the Act.
- **Impact**: The clause ensures that even if such individuals reside abroad, they are still covered under the prohibition of entering into partnerships with CAs in practice unless they are also CAs or members of a recognized professional body.
### Practical Implications:
- This clause maintains the integrity and exclusivity of partnerships involving CAs in practice, restricting them to partnerships with other CAs or members of recognized professional bodies only.
- It prevents potential conflicts of interest and ensures that partnerships involving CAs are within a professional framework that upholds the standards set forth by the Act.
In essence, the bold part of the clause emphasizes that the restriction applies universally, including to individuals who reside abroad but meet the domestic qualifications for membership in a professional body under Indian law.
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