Indian Bare Acts

Search Alphabatically :

THE CHARTERED ACCOUNTANTS ACT, 1949

Title : THE CHARTERED ACCOUNTANTS ACT, 1949

Year : 1949



(1) There shall be a Council of the Institute for the management of the affairs of the Institute and for discharging the functions assigned to it under this Act.

3*[(2) The Council shall be composed of the following persons, namely:-

(a) Not more than thirty-two persons elected by the members of the Institute from amongst the fellows of the Institute chosen in such manner and from such regional constituencies as may be specified:

Provided that a fellow of the Institute, who has been found guilty of any professional or other misconduct and whose name is removed from the Register or has been awarded penalty of fine, shall not be eligible to contest the election,-

(i) In case of misconduct falling under the First Schedule of this Act, for a period of three years;

(ii) In case of misconduct falling under the Second Schedule of this Act, for a period of six years,from the completion of the period of removal of name from the Register or payment of fine, as the case may be;

(b) Not more than eight persons to be nominated in the specified manner, by the Central Government.]

4*[(3) No person holding a post under the Central Government or a State Government shall be eligible for election to the Council under clause (a) of sub-section (2).

(4) No person who has been auditor of the Institute shall be eligible for election to the Council under clause (a) of sub-section (2), for a period of three years after he ceases to be an auditor.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted for the words "persons elected by members of the Institute" by the Chartered Accountants (Amendment) Act (15 of 1959). S. 8 (1-7-1959).

2. Substituted for the words "five persons". by members of the Institute" by the Chartered Accountants (Amendment) Act (15 of 1959). S. 8 (1-7-1959).

3. Substituted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to substitution, it read as under:-

"(2) The Council shall be composed of the following persons, namely :-

(a)1*[not more than twenty-four persons elected by members of the Institute] from amongst the fellows of the Institute chosen in such manner and from such regional constituencies as may be specified in this behalf by the Central Government by notification in the Official Gazette, and

(b)2[six persons] nominated by the Central Government."

4. Inserted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.

--------------------------------------------------------------------------------------------------------------------------------------------------------



A member of the Council, elected or nominated under sub-section (2) of section 9, shall be eligible for re-election or, as the case may be, renomination:

Provided that no member shall hold the office for more than three consecutive terms:

Provided further
that a member of the Council, who is or has been elected as President under sub-section (1) of section 12, shall not be eligible for election or nomination as a member of the Council.]

10A - 3*Settlement of Dispute Regarding Election

In case of any dispute regarding any election under clause (a) of sub-section (2) of section 9, the aggrieved person may make an application within thirty days from the date of declaration of the result of election to the Secretary of the Institute, who shall forward the same to the Central Government.

10B -3* Establishment of Tribunal

(1) On receipt of any application under section 10A, the Central Government shall, y notification, establish a Tribunal consisting of a Presiding Officer and two other Members to decide such dispute and the decision of such Tribunal shall be final.

(2) A person shall not be qualified for appointment,-

(a) As a Presiding Officer of the Tribunal unless he has been a member of the Indian Legal Service and has held a post in Grade I of the service for at least three years;

(b) As a Member unless he has been a member of the Council for at least one full term and who is not a sitting member of the Council or who has not been a candidate in the election under dispute; or

(c) As a Member unless he holds the post of a Joint Secretary to the Government of India or any other post under the Central Government carrying a scale of pay which is not less than that of a Joint Secretary to the Government of India.

(3) The terms and conditions of service of the Presiding Officer and Members of the Tribunal, their place of meetings and allowances shall be such as may be specified.

(4) The expenses of the Tribunal shall be borne by the Council.]

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by the Chartered Accountants (Amendment) Act 1959 (15 of 1959), Section 9 (1-7-1959).

2. Substituted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to substitution, it read as under:-

"110. Mode of Election to the Council.-

(1) Elections under clause (a) of sub-section (2) of section 9 shall be conducted in the prescribed manner.

(2) Where any dispute arises regarding any such election, the matter shall be referred by the Council to a Tribunal appointed by the Central Government in this behalf and the decision of such Tribunal shall be final:

Provided that no such reference shall be made except on an application made to the Council by an aggrieved party within thirty days from the date of the declaration of the result of the election.

(3) The expenses of the Tribunal shall be borne by the Council."

3. Inserted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.

--------------------------------------------------------------------------------------------------------------------------------------------------------
 


If any body of persons referred to in section 9 fails to elect any of the members of the Council which it is empowered under that section to elect, the Central Government may nominate a person duly qualified to fill the vacancy, and any person so nominated shall be deemed to be a member of the Council as if he had been duly elected.



(1) The Council at its first meeting shall elect two of its members to be respectively the President and Vice President thereof, and so often as the office of the President or the Vice-President becomes vacant the Council shall choose another person to be the President or the Vice-President as the case may be:

Provided that on the first constitution of the Council a member of the Council nominated in this behalf by the Central Government shall discharge the functions of the President, until such time as a President is elected under the provisions of this sub-section.

(2) The President shall be the Chief Executive Authority of the Council.

(3) The President or the Vice-President shall hold office for a period of one year from the date on which he is chosen but so as not to extend beyond his term of office as, a member of the Council, and, subject to his being a member of the Council at the relevant time, he shall be eligible for re-election 2[under sub-section (1)].

(4)1*[On the expiration of the duration of Council, the 3*[President and the Vice-President] of the Council at the time of such expiration] shall continue to hold office and discharge such administrative and other duties as may be prescribed until such time as a new 3*[President and the Vice-President] shall have been elected and shall have taken over 4*[charge of their duties].

-------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted for the words "On the dissolution of the Council, the President of the Council at the time of such dissolution"; by the Chartered Accountants (Amendment) Act (15 of 1959) Section 10 (1-7-1959).

2. Inserted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.

3. Substituted for the word "President" by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.

4. Substituted for the word "charge of his duties" by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.

-------------------------------------------------------------------------------------------------------------------------------------------------------
 


(1) Any member of the Council may at any time resign his membership by writing under his hand addressed to the President, and the seat of such member shall become vacant when such resignation is notified in the Official Gazette.

(2) A member of the Council shall be deemed to have vacated his seat if he is declared by the Council to have been absent without sufficient excuse from three consecutive meetings of the Council, 2*[or he has been found guilty of any professional or other misconduct and awarded penalty of fine,] or if his name is, for any cause, removed from the Register under the provisions of Section 20.

(3) A casual vacancy in the Council shall be filled by fresh election from the constituency concerned or by nomination by the Central Government, as the case may be, and the person elected or nominated to fill the vacancy shall hold office until the dissolution of the Council:

1*[Provided that no election shall be held to fill a casual vacancy occurring within 3*[one year] prior to the date of the expiration of the duration of the Council, but such a vacancy may be filled by nomination by the Central Government after consultation with the President of the Council,]

(4) No act done by the Council shall be called in question on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Council.

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Added by the Chartered Accountants (Amendment) Act, 1959 (15 of 1959), Section 11 (1-7-1959).

2. Inserted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.

3. Substituted for the words "six months" by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.
 
--------------------------------------------------------------------------------------------------------------------------------------------------------



1*[(1)] The duration of any Council constituted under this Act shall be three years from the date of its first meeting, on the expiry of which it shall stand dissolved and a new Council constituted in accordance with the provisions of this Act.

1*[(2) Notwithstanding the expiration of the duration of a Council (hereinafter referred to as the former Council), the former Council shall continue to exercise its functions until a new Council is constituted in accordance with the provisions of this Act, and on such constitution, the former Council shall stand dissolved.]

------------------------------------------------------------------------------------------------------------------------------------------------------

1. Section 14 renumbered as sub-section (1) thereof and sub-section (2) added thereto by the Chartered Accountants (Amendment) Act (15 of 1959), Section 12 (1-7-1959).

-------------------------------------------------------------------------------------------------------------------------------------------------------



(1) The Institute shall function under the overall control, guidance and supervision of the Council and the duty of carrying out the provisions of this Act shall be vested in the Council.

(2) In particular, and without prejudice to the generality of the foregoing powers, the duties of the Council shall include -

(a) To approve academic courses and their contents;

(b) The examination of candidates for enrollment and the prescribing of fees therefore;

(c) The regulation of the engagement and training of articled and audit assistants;

(d) The prescribing of qualifications for entry in the Register;

(e) The recognition of foreign qualifications and training for the purposes of enrolment;

(f) The granting or refusal of certificates of practice under this Act;

(g) The maintenance and publication of a Register of persons qualified to practice as chartered accountants;

(h) The levy and collection of fees from members, examinees and other persons;

(i) Subject to the orders of the appropriate authorities under the Act, the removal of names from the Register and the restoration to the Register of names which have been removed;

(j) The regulation and maintenance of the status and standard of professional qualifications of members of the Institute;

(k) The carrying out, by granting financial assistance to persons other than members of the Council or in any other manner, of research in accountancy;

(l) The maintenance of a library and publication of books and periodicals relating to accountancy;

(m) To enable functioning of the Director (Discipline), the Board of Discipline, the Disciplinary Committee and the Appellate Authority constituted under the provisions of this Act;

(n) To enable functioning of the Quality Review Board;

(o) Consideration of the recommendations of the Quality Review Board made under clause (a) of section 28B and the details of action taken thereon in its annual report; and

(p) To ensure the functioning of the Institute in accordance with the provisions of this Act and in performance of other statutory duties as may be entrusted to the Institute from time to time.]

15A -5* Imparting education by Universities and other bodies

(1) Subject to the provisions of this Act, any University established by law or any body affiliated to the Institute, may impart education on the subjects covered by the academic courses of the Institute.

(2) The Universities or bodies referred to in sub-section (1) shall, while awarding degree, diploma or certificate or bestowing any designation, ensure that the award or designation do not resemble or is not identical to one awarded by the Institute.

(3) Nothing contained in this section shall enable a University or a body to adopt a name or nomenclature which is in any way similar to that of the Institute.]

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted for the words "articled clerks" by the Chartered Accountants (Amendment) Act (15 of 1959) Section 13 (1-7-1959).

2. Words "chartered accountants", omitted, by the Chartered Accountants (Amendment) Act (15 of 1959) Section 13 (1-7-1959).

3. Substituted for the words "chartered accountants", by the Chartered Accountants (Amendment) Act (15 of 1959) Section 13 (1-7-1959).

4. Substituted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to substitution, it read as under:-

"(1) The duty of carrying out the provisions of this Act shall be vested in the Council.

(2) In particular, and without prejudice to the generality of the foregoing power, the duties of the Council shall include-

(a) The examination of candidates for enrolment and the prescribing of fees therefore,

(b) The regulation of the engagement and training of1[articled and audit clerks];

(c) The prescribing of qualifications for entry in the Register;

(d) The recognition of foreign qualifications and training for purposes of enrollment;

(e) The granting or refusal of certificates of practice under this Act;

(f) The maintenance and publication of a Register of persons qualified to practice as chartered accountants;

(g) The levy and collection of fees from2[****] members, examinees and other persons;

(h) The removal of names from the Register and the restoration to the Register of names which have been removed;

(i) The regulation and maintenance of the status and standard of professional qualifications of3[members of the Institute]

(j) The carrying out, by financial assistance to persons other than members of the Council or in any other manner, of research in accountancy;

(k) The maintenance of a library and publication of books and periodicals relating to accountancy; and

(l) The exercise of disciplinary powers conferred by this Act."

5. Inserted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.
 
--------------------------------------------------------------------------------------------------------------------------------------------------------



(1) For the efficient performance of its duties, the Council shall-

(a) Appoint a Secretary to perform such duties as may be prescribed;

(b) Appoint a Director (Discipline) to perform such functions as are assigned to him under this Act and the rules and regulations framed there under.

(2) The Council may also-

(a) Appoint such other officers and employees as it considers necessary;

(b) Require and take from the Secretary or from any other officer or employee such security for the due performance of his duties, as the Council considers necessary;

(c) Prescribe the salaries, fees, allowances of the officers and employees and their terms and conditions of service;

(d) With the previous sanction of the Central Government, fix the allowances of the President, Vice-President and other members of the Council and members of its Committees.

(3) The Secretary of the Council shall be entitled to participate in the meetings of the Council but shall not be entitled to vote thereat.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Inserted by the Chartered Accountants (Amendment) Act (15 of 1959), S. 14 (1-7-1959).

2. Inserted, by the Chartered Accountants (Amendment) Act (15 of 1959), S. 14 (1-7-1959).

3. Substituted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to substitution, it read as under:-

"(1) For the efficient performance of its duties, the Council may--
(a) appoint a Secretary who may also, if so decided by the Council, act as Treasurer;

(b) Appoint such other officers and servants as it deems necessary;

(c) Require and take from the Secretary or from any other officer or servant of the Council such security for the due performance of his duties, as the Council considers necessary;

(d) Fix the salaries, fees, allowances and other conditions of service of the officers and servants of the Council;

(e) With the previous sanction of the Central Government, fix the allowances of the President, Vice-President and other members of the Council1*[and members of its committees];

(2) Notwithstanding anything contained in sub-section (1), on the first constitution of the Council the Secretary shall be a person appointed by the Central Government in consultation with the Council, and he shall hold office during the pleasure of the Central Government, but so as not to exceed a period of three years from the date of his appointment.

2*[(3) The Secretary of the Council shall be entitled to participate in the meetings of the Council but shall not be entitled to vote thereat.]"
 
---------------------------------------------------------------------------------------------------------------------------------------------------------



(1) The Council shall constitute from amongst its members the following Standing Committees, namely:-

(i) An Executive Committee,

(ii) An Examination Committee, and

2*[(iii) A Finance Committee.]

3*[(2) The Council may also form such other committees from amongst its members as it consider necessary for the purpose of carrying out the provisions of this Act, and any Committee so formed may, with the sanction of the Council, co-opt such other members of the Institute not exceeding one-third of the members of the committee as it thinks fit, and any member so co-opted shall be entitled to exercise all the rights of a member of the committee.

(3) Each of the Standing Committees shall consist of the President and the Vice-President ex officio, and minimum of three and maximum of five members to be elected by the Council from amongst its members.]

(4) The President and the Vice-President of the Council shall be the Chairman and Vice-Chairman respectively of each of the Standing Committees.

(5) Every member of the Standing Committee other than the Chairman and the Vice-Chairman shall hold office for one year from the date of his election, but subject to being a member of the Council, he shall be eligible for re-election.

(6) The Standing Committees shall exercise such functions and be subject to such conditions in the exercise thereof as may be prescribed.

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by the Chartered Accountants (Amendment) Act (15 of 1959). Section 15 (1-7-1959).

2. Substituted for the words "(iii) a Disciplinary Committee" by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.

3. Substituted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to substitution, it read as under:-

"1[(2) The Council may also form such other committees from amongst its members as it deems necessary for the purpose of carrying out the provisions of this Act, and any committee so formed may, with the sanction of the Council, co-opt such other members of the Institute not exceeding two-thirds of the members of the committee as the committee thinks fit, and any member so co-opted shall be entitled to exercise all the rights of a member of the committee.]

(3) Each of the Standing Committees shall consist of the President and the Vice-President, ex officio, and three other members of the Council elected by the Council:

Provided that in the case of the Disciplinary Committee, out of the members to be elected, two shall be elected by the Council, and the third nominated by the Central Government from amongst the persons nominated to the Council by the Central Government."

---------------------------------------------------------------------------------------------------------------------------------------------------------
 


(1) There shall be established a fund under the management and control of the Council into which shall be paid all monies received by the Council and out of which shall be met all expenses and liabilities properly incurred by the Council.

(2) The Council may invest any money for the time being standing to the credit of the fund in any Government security or in any other security approved by the Central Government.

2*[(3) The Council shall keep proper accounts of the fund distinguishing capital from revenue in the manner prescribed.

(4) The Council shall prepare in the manner prescribed and approve, prior to the start of the financial year, an annual financial statement (the budget) indicating all its anticipated revenues as well as all proposed expenditures for the forthcoming year.

(5) The annual accounts of the Council shall be prepared in such manner as may be prescribed and be subject to audit by a chartered accountant in practice to be appointed annually by the Council:

Provided that no member of the Council or a person who has been a member of the Council during the last four years or a person who is in partnership with such member shall be eligible for appointment as an auditor under this sub-section:

Provided further that, in the event it is brought to the notice of the Council that the accounts of the Council do not represent a true and fair view of its finances, then, the Council may itself cause a special audit to be conducted:

Provided
also that, if such information, that the accounts of the Council do not represent a true and fair view of its finances, is sent to the Council by the Central Government, then, the Council may, wherever appropriate cause a special audit or take such other action as it considers necessary and shall furnish an action taken report on it to the Central Government.]

3*[(5A) As soon as may be practicable at the end of each year, the Council shall circulate the audited accounts to its members at least fifteen days in advance and consider and approve these accounts in a special meeting convened for the purpose.

(5B) The Council shall cause to be published in the Gazette of India not later than the 30th day of September of the year next following, a copy of the audited accounts and the Report of the Council for that year duly approved by the Council and copies of the said accounts and Report shall be forwarded to the Central Government and to all the members of the Institute.]

(6) The Council may borrow from a scheduled bank, as defined in the Reserve Bank of India Act, 3934 (II of 1934), or from the Central Government-

(a) Any money required for meeting Us liabilities on capital account on the security of the fund or on the security of any other assets for the time being belonging to it, or

(b) For the purpose of meeting current liabilities pending the receipt of income by way of temporary loan or overdraft.

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Inserted by the Chattered Accountants (Amendment) Act (15 of 1959), Section 16 (1-7-1959).

2. Substituted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to substitution, it read as under:-

"(3) The Council shall keep proper accounts of the fund distinguishing capital from revenue.

(4) The annual accounts of the Council shall be subject to audit by a chartered accountant1[in practice] to be appointed annually by the Council:

Provided that no member of the Council or a person who is in partnership with such member shall be eligible for appointment as an auditor under this sub-section.

(5) As soon as may be practicable at the end of each year, but not later than the 30th day of September of the year next following, the Council shall cause to be published in the Gazette of India a copy of the audited accounts and the Report of the Council for that year, and copies of the said accounts and Report shall be forwarded to the Central Government and to all the members of the Institute."

3. Inserted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.
 
---------------------------------------------------------------------------------------------------------------------------------------------------------
Last updated on August, 2016

Find a Lawyer

Legal Hall of Fame

The current Legal Luminaries of India, the credible names in the legal circle along with those who would be the leading stars of the next decade. These are some of the reliable names in field of law. Nominate the Legal Stars of tomorrow

More

Recent Judgment


Sudha Mishra vs. Surya Chandra Mishra( R.F.A 299 of 2014

The Hon'ble High Court of Delhi in Sudha Mishra vs. Surya Chandra Mishra (R.F.A 299 of 2014)has ruled that a woman has a right over the property of her husband but she cannot claim a right to live in the house of her parents-in-law

More

Bare Acts

Helpline Law provides a user friendly compendium of Indian Law & Bare Acts. Get a complete list & detail of Indian Bare Acts, with amendments and repeals. It comes with easy-to-use features like Search by bare acts & by year. You can even email the information to yourself!

More

Have a Legal Matter ?
Need a Lawyer?

Have a Legal Matter ?

Need a Lawyer?

Male
Female