23 November 2007
i am working now as consultant in one of private LTD co. ( Finance and Accounts consultant )on part time basis and getting fixed income as Consultancy fees on yearly basis. Now, i want to do practice in continuation of the consultancy i can do So ? Please give the feedback to the earliest
Following is a regulation of the ICAI which i have posted for your ready reference: Engagement In other Business/Occupation (Regulation 190A)
RESOLUTION NOW PASSED BY THE COUNCIL UNDER REGULATION 190A
Eligibility A member in practice is required to seek permission of the Council under Regulation 190A for engagement in any business or occupation other than the profession of accountancy. The member is required to submit an application in the prescribed Form. The permissible catagories of engagements approved by the Council under Regulation 190(A), are available in Appendix No. 9 to the Chartered Accountants Regulations, 1988.
In case a member had obtained permission of the Council for other engagement, he is required to inform the date of leaving, upon ceasing such employment within 30 days.
He may also seek permission for his new engagement by sending the application in the prescribed Form within 30 days.
Requirements An application in the prescribed Form filled in and signed and complete in all respects by the member shall be submitted to the Institute's office within 30 days from the date of joining the employment.
In case the member is employed with a firm of Chartered Accountants, a letter of confirmation from the firm shall also be submitted.
The permission of joining/leaving should be communicated to the Institute's office within 30 days mentioning the exact date when he joined/ceased to be engaged in other occupation/engagement.
Interest In Family Business A member of the Institute can acquire interest in family business in any of the following manner:
as a proprietor of a proprietary firm.
as a partner of partnership firm.
in the name and style of Hindu Undivided Family as its karta or a member.
It would be necessary for the member to provide evidence that interest in the family business concern devolved on him as a result of inheritance/succession/partition of the family business. It is also necessary for the member to show that he was not actively engaged in carrying on the said business and that the family business concern in question was not created by him.
The member is required to submit an application and a declaration in the prescribed format. The format is available at page no. 53.
Director of a Company: A member in practice shall be permitted to be a Director (Director Simplicitor), Promoter/Promoter Director, Subscriber to the Memorandum and Articles of Association of any company including a Board Managed Company.
(a) Director Simplicitor:
the expression 'Director Simplicitor' shall be used for an ordinary/simple Director, who fulfills the following conditions :
he is required to attend the Board meetings only.
He will not be paid any remuneration except the sitting fees for attending the Board meetings; and
He will be devoting his time for the company only to attend Board meetings and not for any other purpose.
A member in practice is permitted generally to be a Director Simplicitor in any Company including a Board-Managed Company and as such he is not required to obtain any specific permission of the Council in this behalf irrespective of whether he and/or his relatives hold substantial interest in that Company.
(b) Promoter/Promoter-Director:
There is no bar for a member to be a Promoter/Signatory to the Memorandum and Articles of Association of any Company. There is also no bar for such a promoter/signatory to be a Director Simplicitor of that Company irrespective of whether the objects of the Company include areas which fall within the scope of the profession of Chartered Accountancy.
Therefore members are not required to obtain specific permission of the Council in such cases.
Appendix No. 9 to the Chartered Accountants Regulations, 1988, particularly item no. 3 of part B together with the definition of 'relative' and 'substantial interest' may be referred to.
Permission for rendering of services to a company as a professional accountant in addition to being Director/Managing Director etc. requires special specific permission of the Executive Committee.
Please be pre-informed for any course of action you adopt in the course of your professional career.
23 November 2007
You can take COP by taking permission of the Council. ICAI is of the view that COP is given to those members who have ability to do justice. Do not ride on two horses is the principle of ICAI.
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