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Very urgent emergency plz help

Go green (ICAI) (666 Points)

10 October 2011

My current principal is not paying any stipend to me. He says that I have come only to learn (not to earn money). So I am thinking of shifting to another firm. I am still in the 1st year of my articleship. Please tell as to how I should approach my principal in this regard (shifting the articleship) and also what should I do if he does not accept.

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8 Replies

sailesh mandani (Auditor) (351 Points)
Replied 10 October 2011

in CA Regulation Act, 1949 the institute has mentioned a minimum stipend payable to article clerk and a CA has to pay that, if he done not pay minimum stipend then he will be held guilty of professional misconduct by Contravening the provisions of the Act or Regulation made thereunder.

i m not suggesting u to file a complaint aginst your principal in institute but u hv that option open with you.

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Roshan Thomas (C.E.O ) (356 Points)
Replied 10 October 2011

First of all you should know that not paying stipend to article will amount to professional misconduct on his part and disciplinary action can be initiated. He is liable to make payment to your bank account via account payee cheque. So that if any complaint against him arises then he can produce the bank statement as evidence.

Anyway that said , you should fill the prescribed form - 109 for termination and 103 for registration again to transfer your articleship.

But it is to be noted that in form 109 details of stipend received is to be mentioned.....since he has not paid any stipend he may refuse to sign the form.

You can ask him to pay the stipend citing the consequences, but if possible ignore the fact that he is not paying any stipend and carry on your articles with your principal.

When you opted for Chartered Accountancy you have saved huge amount already compared to other course. If you proceed against your principal it will bring about a lot of avoidable headache

Annu.R (CA,CS,B.Com) (2788 Points)
Replied 10 October 2011

You may take tranfer with mutual understanding of your principal or without their permition if he is not giving any stipend to you please read Clause 48 to 56 of CA Regulation 1988 (updated in 2002) attached below:-

Attached File : 375104 847427 ca regulation 1988 updated upto 2008.pdf downloaded: 235 times

Vandana Mulchandani (Finance Manager ) (9227 Points)
Replied 10 October 2011

Please go through the post and link bye Richank Sir it will help you

/forum/grounds-and-procedure-for-articleship-transfer-171285.asp

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RG - A Helping Hand (Company Secretary) (13867 Points)
Replied 10 October 2011

Thanks Vandana

Let me post it here only:

Please check below the Grounds and Procedure for Articleship Transfer:

In a major flexibility for CA aspirants, ICAI has given articled clerks a choice to opt out of the existing arrangement with a principal during the first year of articleship.

Transfer/Termination of Articleship

[Regulation 56(1)]

In partial modification of the announcement dated 30th June 2009 regarding transfer / termination of articles the Council in its recent meeting has decided that the transfer/termination of articleship in terms of Regulation 56(1) of the Chartered Accountants Regulations, 1988 shall be permissible on the grounds as stated below:

I. Transfer /termination of articles is permitted without any restriction during the first year of articles.

II. During rest of the articleship period on satisfying any one or more of the conditions as stated below: -

1. Medical grounds requiring discontinuance of articles for a minimum period of three months (on production of a Medical Certificate issued by a Government Hospital).

2. Transfer of parent(s) to another city.

3. Misconduct involving moral turpitude.

4. Other justifiable circumstances / reasons: -

(ii) Grounds already permissible in the Chartered Accountants Regulations, 1988 (on submission of requisite proof of the act warranting transfer/terminatio n of articleship) : -

a. Industrial Training (Regulation 51)

b. Secondment of articles (Regulation 54)

c. Conversion from PCC to IPCC (for termination of articles only. Re-registration of articles to be allowed only after passing Group-I of IPCC)

d. Death of Principal [Regulation 57(1)(c)]

e. Ceasing of practice by the Principal [Regulation 57(1)(a)]

f. Removal of name of the Principal from the Register of Member due to any reason [Regulation 57(1)(b)]

(iii) Marriage basis (only if there is relocation to another city involving distance of 50 kms).

(iv) Irregular payment or non-payment of stipend with reference to Regulation 67.

(v) Articled assistant desires to serve balance period of training outside India.

(vi) Shifting by the Principal to another city involving distance more than 50 kms.

PROCEDURE

The articled assistants are required to get the consent of the Institute before getting Form 109 signed by the Principal in their own interest.

The request, on any one or more of the aforesaid grounds, of an articled assistant on a plain paper along with the recommendation / consent of the Principal for transfer / termination of articleship accompanied by evidence / proof (self-attested by the articled assistant) to the satisfaction of the Institute be made. Request for transfer not accompanied by consent of Principal shall not be accepted.

In case of dispute between principal and articled assistant, the matter be settled amicably among the articled assistant and the principal concerned and the Institute shall not interfere in such cases.

Thanks

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nandkishore (student) (54 Points)
Replied 10 October 2011

I think you should continue to work with the same CA only if there is lot of scope of learning new things that a CA student is supposed to learn in the same firm. Further i would like to have a voice chat with u so that i can share knowledge with u. Please reply me a ashok6799 @ gmial.com to have a chat with me.

Go green (ICAI) (666 Points)
Replied 10 October 2011

I did not ask you Grounds and Procedure for Articleship Transfer. I just asked as to how I should approach my principal for shifting of my articleship since I am still in the 1st of year of my articleship

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