Chartered Accountants Act,1949
Act No : 38
Section :
See sections 21 (4) and 22
3*[THE FIRST SCHEDULE [See sections 21 (4) and 22] PART I Professional misconduct in relation to chartered accountants in practice A chartered accountant in practice shall be deemed to be guilty of professional misconduct, if he-- (1) allows any person to practise in his name as a chartered accountant unless such person is also a chartered accountant in practice and is in partnership with or employed by himself; (2) pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of a deceased partner; --------------------------------------------------------------------- 1 Ins. by Act 20 of 1983, s. 2 & Sch. (w.e.f. 15-3-84). 2 Subs. by Act 15 of 1959, s. 25, for the original section (w.e.f. 1-7-1959). 3 Subs. by s. 26, ibid., for the original Schedule (w.e.f. 1-7- 1959). 25 Explanation.--In this item "partner" includes a person residing outside India with whom a chartered accountant in practice has entered into partnership which is not in contravention of item (4) of this Part; (3) accepts or agrees to accept any part of the profits of the professional work of a lawyer, auctioneer, broker, or other agent who is not a member of the Institute; (4) enters into partnership with any person other than a chartered accountant in practice or a person resident without India who but for his residence abroad would be entitled to be registered as a member under clause (v) of sub-section (1) of section 4 or whose qualifications are recognised by the Central Government or the Council for the purpose of permitting such partnerships, provided that the chartered accountant shares in the fees or profits of the business of the partnership both within and without India; (5) secures, either through the services of a person not qualified to be his partner or by means which are not open to a chartered accountant, any professional business; (6) solicits clients or professional work either directly or indirectly, by circular, advertisement, personal communication or interview or by any other means; (7) advertises his professional attainments or services, or uses any designation or expressions other than chartered accountant on professional documents, visiting cards, letter heads or sign boards, unless it be a degree of a University established by law in India or recognised by the Central Government or a title indicating membership of the Institute of Chartered Accountants or of any other institution that has been recognised by the Central Government or may be recognised by the Council; (8) accepts a position as auditor previously held by another chartered accountant or a restricted State auditor without first communicating with him in writing; (9) accepts an appointment as auditor of a company without first ascertaining from it whether the requirements of section 1*[225] of the Companies Act, 1956, (1 of 1956), in respect of such appointment have been duly complied with; --------------------------------------------------------------------- 1 Subs. by Act 52 of 1964, s. 3 and Sch. II, for "226". 26 (10) charges or offers to charge, accepts or offers to accept in respect of any professional employment fees which are based on a percentage of profits or which are contingent upon the findings or results of such employment, except in cases which are permitted under any regulations made under this Act; (11) engages in any business or occupation other than the profession of chartered accountants unless permitted by the Council so to engage: Provided that nothing contained herein shall disentitle a chartered accountant from being a director of a company, unless he or any of his partners is interested in such company as an auditor; (12) accepts a position as auditor previously held by some other chartered accountant or a restricted State auditor in such conditions as to constitute under- cutting; (13) allows a person not being a member of the Institute or a member not being his partner to sign on his behalf or on behalf of his firm, any balance-sheet, profit and loss account report or financial statements. PART II Professional misconduct in relation to members of the Institute in Service A member of the Institute (other than a member in practice) shall be deemed to be guilty of professional misconduct, if he being an employee of any company, firm or person-- (a) pays or allows or agrees to pay directly or indirectly to any person any share in the emoluments of the employment undertaken by the member; (b) accepts or agrees to accept any part of fees, profits or gains from a lawyer, a chartered accountant or broker engaged by such company, firm or person or agent or customer of such company, firm or person by way of commission or gratification; (c) discloses confidential information acquired in the course of his employment except as and when required by law or except as permitted by the employer. 27 PART III Professional misconduct in relation to members of the Institute generally A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct, if he-- (1) includes in any statement, return or form to be submitted to the Council any particulars knowing them to be false; (2) not being a fellow styles himself as a fellow; (3) does not supply the information called for, or does not comply with the requirements asked for, by the Council or any of its Committees.
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