shravan (103 Points)
24 December 2010
I would like to know in the following cases if a CA is allowed to take up another business as a direct marketing/selling agent
1. A CA in practice
2. A CA in full time employment
It would be very helpful if this answer would be clear with regard to the CA Act and/or relevant case laws
ANKUR KUMAR
(CA-FINAL)
(39 Points)
Replied 24 December 2010
Dear Shravan,
As specific descripttion about direct marketing/selling agent asked by you not clear as no business product reference is provided in connection with that:-
For
I) CA in practice:-
1) Earning Insurance brokerage through Insurance business is allowed with reference to Regulation 190A of CA Act,1949.
2) For other than Insurance business -- Specific permission is required to be taken from the ICAI w.r.t Regulation 190A of CA Act,1949.
For
II) CA in full time employment:-
-- In my view w.r.t CA Act,1949,,,CA in Employment can take up other business also
as no specific prohibition is being provided in the Act.
Q. Whether a Chartered Accountant in practice can engage in any business or occupation other than the profession of Chartered Accountancy?
A. No, in terms of Clause (11) of Part I of First Schedule to the CA Act , in general, a Chartered Accountant in practice is not permitted to engage in any business or occupation other than the profession of Chartered Accountancy.
However, there are following exceptions to it:-
1. A Chartered Accountant can be a director of a company (not being a managing director or a whole time director), unless he or any of his partners is interested in such company as an auditor.
2. A Chartered Accountant in practice may engage in any business or occupation with the permission granted in accordance with a resolution of the Council.
Appendix (9) of CA Regulations contains the above Resolution under two heads (A) Permission granted generally (B) Permission to be granted specifically. (please refer pages 345-349 of the Code of Ethics, 2009 ).
CAclubindia
