02 March 2012
Unless his contract of employment prohibit him to become a director, he can be a director. As far as promoter or subscriber is concerned, yes, he can be a promoter or subscriber to MOA. Normally no contract of employment prohibit an employee to become a promoter because such thing is just an investment in the Company.
A Chartered Accountant in practice CAN 1. Share profits of business or other similar arrangements with certain categories of non-members, to be prescribed, from time to time, in the Regulations. 2. Enter in to multi–disciplinary partnership, in or outside India, with certain categories of non-members, to be prescribed, from time to time, in the Regulations. 3. The members can use the Logo (released by the Institute on 1st July, 2007) which consists of the letters ‘CA’ and a tick mark upside down inside a rounded rectangle with white background. (members can use this Logo as per Institute’s guideline available on its website/Refer The CA Journal July, 2007). 4. Advertise through a write up setting out their particulars of their firms and services provided by them subject to the Guidelines No.1–CA(7)/council guidelines/01/2008, Dated 14th May, 2008 issued by the Council pursuant to Clause (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949. (Refer The CA Journal July, 2008 for the detailed guidelines). 5. Give his name and his firms name under specified groups in telephone directory viz., Yellow Pages brought by telephone authorities. 6. Use the designation ‘C.A.’ as well as the name of the firm in greeting cards and invitation cards. 7. Be a director simpliciter in a company without permission of the Council. 8. Be a promoter director in a company without prior permission of the Council. 9. Render Management Consultancy and Other Services in Corporate form, subject to the guidelines issued by the Institute in this regard. (Decision in the 261st Council meeting. Published on page 629 of October 2006 issue of C.A. Journal).
To empower the members to face the emerging challenges in the service sector as well as to equip them for the opportunities in the non-audit service area, the Council decided to allow members in practice to hold the office of Managing Director, Whole-time Director or Manager of a body corporate within the meaning of the Companies Act, 1956 provided that the body corporate is engaged exclusively in rendering Management Consultancy and Other Services permitted by the Council in pursuant to Section 2(2)(iv) of the Chartered Accountants Act, 1949 and complies with the conditions(s) as specified by the Council from time to time in this regard. The members can retain full time Certificate of Practice besides being the Managing Director, Whole-time Director or Manager of such Management Consultancy Company. There will be no restriction on the quantum of the equity holding of the members, either individually and/or along with the relatives, in such Company. Such members shall be regarded as being in full-time practice and therefore can continue to do attest function either in individual capacity or in Proprietorship/Partnership firm. They are also entitled to train articled/audit assistants. Management Consultancy Company means a Company which complies with the Guidelines for Practice in Corporate Form issued by the Institute. Management Consultancy & Other Services or MCS means ‘Management Consultancy & Other Services’ permitted by the Council in pursuance to Section 2(2)(iv) of the Chartered Accountants Act, 1949. The expression "Management Consultancy and other Services" shall not include the function of statutory or periodical audit, tax (both direct taxes and indirect taxes) representation or advice concerning tax matters or acting as liquidator, trustee, executor, administrator, arbitrator or receiver
02 March 2012
If one of the objects of the company is to practice the profession of Chartered Accountancy then the concerned Registrar of Companies will incorporate the same only on production of in-principle approval from the professional ICAI.
Courtesy:- Mca general circular 2/2012 dated March 1,2012.
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