Can CA in practice be Director in a Investment Advisory Company

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Arvind Gupta (Querist)
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06 December 2024 Dear Expert,
Please let me know whether a Practising Chartered Accountant allowed to be a Director in an Mutual Advisory Company oir not? And if he do so then what is the consequences ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 December 2024 According to the Institute of Chartered Accountants of India (ICAI), a practicing Chartered Accountant (CA) is allowed to hold the position of a director in a company, including a Mutual Benefit Company, subject to certain conditions:
Permission from ICAI: The practicing CA must obtain permission from the ICAI before accepting the directorship.
Compliance with Code of Ethics: The CA must comply with the Code of Ethics and the Chartered Accountants Act, 1949.
No conflict of interest: The CA must ensure that there is no conflict of interest between their professional work and the directorship.
Disclosure: The CA must disclose their interest in the company to the ICAI and to the company's board of directors.