General and specific permission from ICAI for a member

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A Chartered Accountant with an active COP is seeking guidance on updating their engagement details with ICAI. They have been appointed as a director and hold 50% shares in a private family business. The ICAI's online form requires a declaration stating that neither the member nor their relatives hold a substantial interest in the business for which employment permission is sought. As holding 50% shares constitutes a substantial interest, the member cannot truthfully make this declaration and therefore cannot submit the form. The advice received is to obtain specific permission from the Institute rather than selecting the declaration.

Ayush Agarwal

Ayush Agarwal (Querist)

14 April 2020 Hello experts,
I hold an active COP from ICAI. However i recently got appointed as a director in a private company (family business) and also hold 50% shares of the same. On SSP, while updating my engagement details under regulation 190A, on the form, ICAI asks for a declaration which states, " I Declare That I And / Or My Relatives Do Not Hold A Substantial Interest In The Business Concern In Respect Of Which Permission For Full-Time / Part-Time Employment Is Sought." As i hold 50% of the shares, i have a substantial interest to which i can't declare. If i don't select this declaration button, i am not allowed to submit the form. So, how should i update my engagement details?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 April 2020 For family business permission is given take permission from the Institute.

Ayush Agarwal

Ayush Agarwal (Querist)

15 April 2020 Thanks for your response sir. So as you said, should i select the declaration of not holding substantial interest even though i hold 50% shares of the company?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 April 2020 No, obtain permission from the Institute.

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