Can a practising CA become a director in company?

Page no : 2

Hardik shah (article) (22 Points)
Replied 13 February 2017

I understood that CA in practice can become director simplicitor.

can he take consultancy fees from the company in which he is director simplicitor for rendering professional service to the company ?

jayanth srinivas (student) (22 Points)
Replied 16 February 2017

Hi Everyone,

What is the case if he resigns as a director from the company after attaining COP? Does any Contravention attracts? Can he continue as a Business Advisor for that company by charging consulting fees?

RAJENDRA (CHARTERED ACCOUNTANTS) (25 Points)
Replied 20 June 2017

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

RAJENDRA (CHARTERED ACCOUNTANTS) (25 Points)
Replied 20 June 2017

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 ?

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.

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

V K Vijayaraghavan (PRACTICE) (186 Points)
Replied 06 April 2018

CA with COP cannot take any type of remuneration. But the firm in which he is a partner can charge consulting fees . I hope so.

Vanshika Vishnoi (2 Points)
Replied 28 May 2022

It is perfectly understood that permission is required for becoming the WTD or MD in a company for a PCA, but then the question arises what is the procedure to attain this permission?