Please go through the link https://www.icai.org/new_post.html?post_id=4630&c_id=237
Or else, i have extracted few clarifications issued by ICAI regarding clause 6, Part 1, of Schedule I of CA Act. Mere reading of the clause would lead us no where, but on a combined reading of our study material and following clarifications issued would help us in understanding better.
(following clarifications may/may not be directly related to this thread)
Nov 2009 Issue CA Journal
Q. Whether a Chartered Accountant in practice can give public interviews and also whether he can furnish details about himself or his firm in such interviews?
A. Chartered accountant in practice can give public interviews. While doing so, due care should be taken to ensure that such interviews or details about the members or their firms are not given in a manner highlighting their professional attainments, which may hit clauses (6) and (7) of the First Schedule of the CA Act.
January 2010 Issue, CA Journal
Q. Whether companies in which chartered accountants have been appointed as directors on their Board can publish descripttion about the chartered accountant's expertise, specialization and knowledge in any particular field or add appellations or adjectives to their names in the prospectus or public announcements issued by these companies?
A. The Council's attention has been drawn to the fact that more and more companies are appointing chartered accountants as directors on their Boards. The prospectus or public announcements issued by these companies often publish descripttions about the chartered accountants' expertise, specialization and knowledge in any particular field or add appellations or adjectives to their names. Attention of the members in this context is invited to the provisions of Clause (6) and (7) of Part I of the First Schedule to the CA Act.
In order that the inclusion of the name of a member of the Institute in the prospectus or public announcements or other public communications issued by the companies in which the member is a director does not contravene the above noted provisions, it is necessary that the members should take necessary steps to ensure that such prospectus or public announcements or public communications do not advertise his professional attainments and also that such prospectus or public announcements or public communications do not directly or indirectly amount to solicitation of clients for professional work by the member. While it may be difficult to lay down a rigid rule in this respect, the members must use their good judgement, depending upon the facts and circumstances of each case to ensure that the above noted provisions are complied with both in letter and spirit.
It is advisable for a member that as soon as he is appointed as a director on the Board of a company, he should specifically invite the attention of the management of the company to the aforesaid provisions and should request that before any such prospectus or public announcements or public communication mentioning the name of the member concerned, is issued, the material pertaining to the member concerned should, as far as practicable be got approved by him.
(Published in December, 2009 issue of the CA Journal)
Q. Can a Chartered Accountant advertise his professional attainments or
services?
A. No, as per Clause (7) of Part –I of the First Schedule of the CA Act read with Section 22, a
member shall be deemed to be guilty of professional misconduct, if he advertises his
professional attainments or services. Now the Act has been amended and a proviso has
been inserted in the Clause (7) . The proviso says that a member in practice may
advertise through a write- up setting out the services provided by him or his firm
and particulars of his firm subject to such guidelines as may be issued by the
Council. Thus due to addition of this proviso now the Chartered Accountant in
practice is allowed to advertise. But it has to be as per the Guidelines of the
Council . Here the attention is drawn to the Clause (6) of the Part-I of the First
Schedule which says that if Chartered Accountant solicits clients or professional
work either directly or indirectly by circular, advertisement, personal
communication or interview or by any other means it would be treated as
professional misconduct . So if proviso to Clause (7) and wordings of Clause (6)
are compared , it appears that an impossible situation is created since Clause
(6) prohibits advertisement and Clause (7) allows advertisement. However, there
is no contradiction as in Clause (6) only the advertisement for soliciting of clients
or professional work is prohibited . Thus other advertisements which do not solicit
clients or professional work are not covered under this Clause. Whereas, Clause
(7) prohibits Chartered Accountant from advertising his professional attainments
or services, but the proviso permits to advertise through a write- up setting out
the services provided by him or his firm and particulars of his firm subject to such
Guidelines as may be issued by the Council. Thus advertisement, in a limited
way through a write –up, as per the Council Guidelines and not soliciting of
clients or professional work is permitted
Source ICAI Website
CAclubindia
