Cop clarification
This query is : Open
17 April 2012
Hello All,
I am member or ICAI since Apr07, I have been granated permission to hold part time COP vide its letter and granted permission to do pratice of profession of accountany.
With repspect to that letter & ICAI rules & regulations, please clarify me rights & duties about COP.
Please guide me for this matter on urgent basis.
I am member or ICAI since Apr07, I have been granated permission to hold part time COP vide its letter and granted permission to do pratice of profession of accountany.
With repspect to that letter & ICAI rules & regulations, please clarify me rights & duties about COP.
Please guide me for this matter on urgent basis.
17 April 2012
Part time COP is alloted when you are doing a job in a CA firm and this part time COP is only for limited purpose of training of article assistants .
17 April 2012
ENGAGEMENT IN OTHER BUSINESS / OCCUPATION
Eligibility and Requirements
A Chartered Accountant holding COP is required to seek permission from ICAI by way of application in the form prescribed under regulation 190A for engagement in any business or occupation other than profession of accountancy. The permission of joining or information of leaving the job should be communicated to ICAI within 30 days mentioning the exact date of joining / ceased to be engaged in other occupation / engagement. In case of member employed with a CA firm, a letter of confirmation from the firm shall also be submitted.
Interest in Family Business
A member of ICAI can acquire interest in family business in the following manner:
(a) as proprietor of a proprietary firm.
(b) as a partner of Partnership firm.
(c) in the name and style of HUF as Karta or a member.
Member is required to provide the evidence that interest in the family business concern devolved on him due to inheritance/ succession / partition of the family business and he was not actively engaged in the affairs of the said business and said family business is not his creation. Member shall make an application and a declaration in the prescribed format.
Director, Promoter/Promoter Director of a Company
A practicing member is permitted to be an ordinary or simple Director, may be called Director Simplicitor, Promoter / Promoter Director, Subscriber to the Memorandum and Articles of Association of any company, subject to the following conditions:
(a) He is required to attend Board meeting only; and
(b) He will not be paid any remuneration except the sitting fees for attending Board meeting only; and
(c) He will be devoting his time for the company, only to attend Board meeting and not for any other purposes.
For becoming such promoter or simple / ordinary Director, a member in practice requires a general permission and not specific permission irrespective of whether he and / or his relatives hold substantial interest in that company.
There is no bar on such engagements irrespective of whether the object of the company includes areas, which fall within the scope of the permission of Chartered Accountancy. For rendering the services as professional accountant to the company, in addition to being Director / Managing Director etc., a member requires a special specific permission of the executive committee.
IV. GENERALLY GRANTED & SPECIFICALLY GRANTED PERMISSIONS
(A) Permission Granted Generally
For the following categories of engagements, ICAI gives the general permission to its members holding COP:
1. Employment under Chartered Accountants in practice or firms of such Chartered Accountants.
2. Private tutorship.
3. Authorship of Books and Articles.
4. Holding of Life Insurance agency license for the limited purpose of getting renewal commission.
5. Attending classes and appearing for any examination.
6. Holding of public elected offices such as M.P, M.LA & MLC.
7. Honorary office-bearership of charitable, educational or other non¬commercial organisations.
8. Acting as Notary Public, Justice of the Peace, Special Executive Magistrate and the like.
9. Part-time tutorship under the Coaching Organisation of the Institute.
10. Valuation of papers, acting as paper setter, head-examiner or moderator for any examination.
11. Editorship of professional journals.
12. Acting as Surveyor and Loss Assessor under the Insurance Act, 1938.
13. Acting as Recovery Consultant in the Banking Sector.
(B) Permission to be Granted Specifically
The practicing members of the Institute, on obtaining specific and prior approval of the Council in each case, may engage/involve themselves in the following categories of business or occupations:
1. Full-time or part-time employment in business entities subject to the member and /or his relatives do not hold substantial interest in such concerns.
2. Full-time or part-time employment in non-business concerns.
3. Office of Managing Director or a whole-time Director of a body corporate within the meaning of the Companies Act, 1956, provided that the member and /or his relatives do not hold substantial interest in such a body corporate.
4. Interest in family business concern(s) in which interest has been acquired as a result of relationship and in the management of which no active part is taken.
5. Interest in agricultural and allied activities carried on with the help, if required, of hired labour.
6. Interest in an educational institution.
7. Part-time or full-time lectureship for courses other than those relating to the Institute's examination conducted under the auspices of the Institute or the Regional Councils or their branches.
8. Part-time or full-time tutorship under any educational institution other than the Coaching Organisation of the Institute.
9. Editorship of journals other than professional journals.
10. Any other business or occupation for which the Executive Committee considers that permission may be granted.
Further, the ICAI has power to refuse permission in individual cases though covered under any of the above categories.
Explanations
For the purpose of the above items in (A) or (B):
(i) The expression "relative", in relation to a member means the husband, wife brother or sister or any lineal ascendant or descendant of that member; and
(ii) A member shall be deemed to have a "substantial interest" in a concern¬
(a) In the case of body corporate, if its shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than 20% of voting power at any time, during the relevant years are owned beneficially by such member or by anyone or more of the following persons or partly by such member and partly by one or more of the following persons:
(i) One or more relatives of the member.
(ii) Any concerns in which any of the persons referred to above has a substantial interest;
(b) In the case of any other concern, if such member is entitled or the other persons referred to above or such member and one or more of the other persons referred to above are entitled in the aggregate, at any time during the relevant years to not less than 20% of the profit of such concern.
V. CONDONATION OF BREACH OF REGULATION FOR NON¬-FILING OF FORMS WITHIN SPECIFIED TIME .
For getting the delay condon, the concerned form and a request from the member along with the fee is to be submitted with ICAI.
Eligibility and Requirements
A Chartered Accountant holding COP is required to seek permission from ICAI by way of application in the form prescribed under regulation 190A for engagement in any business or occupation other than profession of accountancy. The permission of joining or information of leaving the job should be communicated to ICAI within 30 days mentioning the exact date of joining / ceased to be engaged in other occupation / engagement. In case of member employed with a CA firm, a letter of confirmation from the firm shall also be submitted.
Interest in Family Business
A member of ICAI can acquire interest in family business in the following manner:
(a) as proprietor of a proprietary firm.
(b) as a partner of Partnership firm.
(c) in the name and style of HUF as Karta or a member.
Member is required to provide the evidence that interest in the family business concern devolved on him due to inheritance/ succession / partition of the family business and he was not actively engaged in the affairs of the said business and said family business is not his creation. Member shall make an application and a declaration in the prescribed format.
Director, Promoter/Promoter Director of a Company
A practicing member is permitted to be an ordinary or simple Director, may be called Director Simplicitor, Promoter / Promoter Director, Subscriber to the Memorandum and Articles of Association of any company, subject to the following conditions:
(a) He is required to attend Board meeting only; and
(b) He will not be paid any remuneration except the sitting fees for attending Board meeting only; and
(c) He will be devoting his time for the company, only to attend Board meeting and not for any other purposes.
For becoming such promoter or simple / ordinary Director, a member in practice requires a general permission and not specific permission irrespective of whether he and / or his relatives hold substantial interest in that company.
There is no bar on such engagements irrespective of whether the object of the company includes areas, which fall within the scope of the permission of Chartered Accountancy. For rendering the services as professional accountant to the company, in addition to being Director / Managing Director etc., a member requires a special specific permission of the executive committee.
IV. GENERALLY GRANTED & SPECIFICALLY GRANTED PERMISSIONS
(A) Permission Granted Generally
For the following categories of engagements, ICAI gives the general permission to its members holding COP:
1. Employment under Chartered Accountants in practice or firms of such Chartered Accountants.
2. Private tutorship.
3. Authorship of Books and Articles.
4. Holding of Life Insurance agency license for the limited purpose of getting renewal commission.
5. Attending classes and appearing for any examination.
6. Holding of public elected offices such as M.P, M.LA & MLC.
7. Honorary office-bearership of charitable, educational or other non¬commercial organisations.
8. Acting as Notary Public, Justice of the Peace, Special Executive Magistrate and the like.
9. Part-time tutorship under the Coaching Organisation of the Institute.
10. Valuation of papers, acting as paper setter, head-examiner or moderator for any examination.
11. Editorship of professional journals.
12. Acting as Surveyor and Loss Assessor under the Insurance Act, 1938.
13. Acting as Recovery Consultant in the Banking Sector.
(B) Permission to be Granted Specifically
The practicing members of the Institute, on obtaining specific and prior approval of the Council in each case, may engage/involve themselves in the following categories of business or occupations:
1. Full-time or part-time employment in business entities subject to the member and /or his relatives do not hold substantial interest in such concerns.
2. Full-time or part-time employment in non-business concerns.
3. Office of Managing Director or a whole-time Director of a body corporate within the meaning of the Companies Act, 1956, provided that the member and /or his relatives do not hold substantial interest in such a body corporate.
4. Interest in family business concern(s) in which interest has been acquired as a result of relationship and in the management of which no active part is taken.
5. Interest in agricultural and allied activities carried on with the help, if required, of hired labour.
6. Interest in an educational institution.
7. Part-time or full-time lectureship for courses other than those relating to the Institute's examination conducted under the auspices of the Institute or the Regional Councils or their branches.
8. Part-time or full-time tutorship under any educational institution other than the Coaching Organisation of the Institute.
9. Editorship of journals other than professional journals.
10. Any other business or occupation for which the Executive Committee considers that permission may be granted.
Further, the ICAI has power to refuse permission in individual cases though covered under any of the above categories.
Explanations
For the purpose of the above items in (A) or (B):
(i) The expression "relative", in relation to a member means the husband, wife brother or sister or any lineal ascendant or descendant of that member; and
(ii) A member shall be deemed to have a "substantial interest" in a concern¬
(a) In the case of body corporate, if its shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than 20% of voting power at any time, during the relevant years are owned beneficially by such member or by anyone or more of the following persons or partly by such member and partly by one or more of the following persons:
(i) One or more relatives of the member.
(ii) Any concerns in which any of the persons referred to above has a substantial interest;
(b) In the case of any other concern, if such member is entitled or the other persons referred to above or such member and one or more of the other persons referred to above are entitled in the aggregate, at any time during the relevant years to not less than 20% of the profit of such concern.
V. CONDONATION OF BREACH OF REGULATION FOR NON¬-FILING OF FORMS WITHIN SPECIFIED TIME .
For getting the delay condon, the concerned form and a request from the member along with the fee is to be submitted with ICAI.
17 April 2012
I taken specific permission to be in employment & also hold COP.
I just wanted to know whether i can sign the audit report, as i have been given permission to engage in the profession of accountancy.
I just wanted to know whether i can sign the audit report, as i have been given permission to engage in the profession of accountancy.
17 April 2012
Profession of accounting does not includes audit.
In my view, For purpose of audit you should be full time in practice.
In my view, For purpose of audit you should be full time in practice.
17 April 2012
I took permission to hold COP along with the permission to be in full time employment & paid the prescribed fees also.
please clarify what includes profession of accountancy.
please clarify what includes profession of accountancy.
23 April 2012
team please reply........i am waiting.
25 April 2012
team please reply.......i am waiting
15 February 2016
Can CA with COP be partner in LLP doing business activities if he doesn't receive any remuneration or salary??
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