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CA IN PRACTICE - COMPLIANCE

CA Manish (Practice) (87 Points)

29 January 2011

I would like to know whether a Chartered Accountant in Practice be a Director/Manager/

Managing Director/ in a Company.

Kindly give me the link wherein i can get the details.

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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 ).

Published in March, 2010 issue of the CA Journal

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