The Ministry of Corporate Affairs has moved a cabinet note to amend three acts governing the professional regulators. The Chartered Accountants Act, the Cost & Works Accountants Act and the Company Secretaries Act are all set to be amended, reports CNBC-TV18’s Malvika Jain citing sources in the government on the effect of the proposed amendment.
The amendment will allow professionals to form limited liability partnerships which will be multi disciplinary in nature. Presently, it is not possible for a lawyer to work with a Chartered Accountant and form a partnership.
Since 2008 when the Limited Liability Partnership (LLP) Act was passed, it has been the demand of the professionals that they should be allowed to form multi-disciplinary LLPs.
If this enabling provision is passed by the Cabinet then it will provide professionals with operational flexibility. It is going to make their functioning more cost effective and will help them add more clients by offering packaged deals.
CAclubindia
