Can a practising CA become a director in company?

Published in March, 2010 issue of the CA Journal

Q. Whether a Chartered Accountant in practice can engage in any business or occupation other than the profession of Chartered Accountancy ?

A. No, in terms of Clause (11) of Part I of First Schedule to the CA Act , in general, a Chartered Accountant in practice is not permitted to engage in any business or occupation other than the profession of Chartered Accountancy.
However, there are following exceptions to it:-

1.   A Chartered Accountant can be a director of a company (not being a managing director or a whole time director), unless he or any of his partners is interested in such company as an auditor. 

2.   A Chartered Accountant in practice may engage in any business or occupation with the permission granted in accordance with a resolution of the Council. 

Appendix (9) of CA Regulations contains the above Resolution under two heads (A) Permission granted generally (B) Permission to be granted specifically. (please refer pages 345-349 of the Code of Ethics, 2009 ). 

This does not lay down any requiremnt for seeking any permission except if the peson wants to become a managing or a whole-time director

Published in March, 2010 issue of the CA Journal

Q. Whether a Chartered Accountant in practice can engage in any business or occupation other than the profession of Chartered Accountancy ?

A. No, in terms of Clause (11) of Part I of First Schedule to the CA Act , in general, a Chartered Accountant in practice is not permitted to engage in any business or occupation other than the profession of Chartered Accountancy.
However, there are following exceptions to it:-

1.   A Chartered Accountant can be a director of a company (not being a managing director or a whole time director), unless he or any of his partners is interested in such company as an auditor. 

2.   A Chartered Accountant in practice may engage in any business or occupation with the permission granted in accordance with a resolution of the Council. 

Appendix (9) of CA Regulations contains the above Resolution under two heads (A) Permission granted generally (B) Permission to be granted specifically. (please refer pages 345-349 of the Code of Ethics, 2009 ). 

This does not lay down any requiremnt for seeking any permission except if the peson wants to become a managing or a whole-time director