The government has tabled the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2021 wherein the norms of the Disciplinary Mechanism for Chartered Accountant (CA), Cost and Works Accountants (CMA) and Company Secretary (CS) has been tightened.
Any firm aggrieved by the decision for refusal of registration may apply for review before the Council within one month from the date of such refusal. The Council may, after considering the review application, confirm or set aside the decision so taken or pass such orders as it may consider appropriate.
The Council shall, by notification, establish a Disciplinary Directorate consisting of a Director (Discipline), at least two Joint Directors (Discipline) not below the rank of Deputy Secretary of the Institute and such other employees appointed under section 16, for making investigations either suo motu, or on receipt of an 10 information or a complaint, in such form, along with such fees as may be specified. Within thirty days of receipt of an information or a complaint, the Director (Discipline) shall decide in such manner as may be specified, whether a complaint or information is actionable or is liable to be closed as non-actionable.
Clause 62 of the Bill seeks to amend section 22E of the Act to make consequential amendments for inclusion of firms of the cost accountants under the purview of disciplinary mechanism, define member and firm for the purpose of disciplinary actions and to provide for scope of actions against the members or firms registered with the Institute under any other law.
Clause 58 of the Bill seeks to substitute section 21B of the Act to empower the Central Government to establish one or more Disciplinary Committees, each comprising of a Presiding Officer to be nominated by the Central Government and four members of which two shall be nominated by the Central Government and two members to be nominated by the Council. It further seeks to fix a timeframe for completion of inquiry by Disciplinary Committees and to empower the Central Government to make rules for procedures to be followed by it, modify penalty provisions for misconduct by members of the Institute and to provide for inclusion of firms of cost accountants under the purview of disciplinary mechanism. It also seeks to empower the Council to remove names from the Register on non-payment of penalties imposed under the Bill.
Any person who, not being a member of the Institute, represents that he is a member of the Institute; or uses the designation “Company Secretary”; or uses the letters “A.C.S.” or “F.C.S.” after his name; or being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practises as a Company Secretary, shall be punishable on first conviction with fine which may extend to one thousand rupees, and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both.
Clause 63 of the Bill seeks to amend section 24 of the Act to enhance penalties for falsely claiming to be a member of the Institute, etc.
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