9. Constitution of the Council of the Institute
(1) There shall be a Council of the Institute for the
management of the affairs of the Institute and
for discharging the functions assigned to it
under this Act.
1[(2) The Council shall be composed of the following
persons, namely :−
(a) not more than thirty-two persons
elected by the members of the Institute
from amongst the fellows of the
Institute chosen in such manner and
from such regional constituencies as
may be specified2:
Provided that a fellow of the Institute,
who has been found guilty of any
professional or other misconduct and
whose name is removed from the
Register or has been awarded penalty of
fine, shall not be eligible to contest the
election,−
(i) in case of misconduct falling
under the First Schedule of this
Act, for a period of three years;
(ii) in case of misconduct falling
under the Second Schedule of
this Act, for a period of six years,
from the completion of the period of
removal of name from the Register or
payment of fine, as the case may be;
19
(b) not more than eight persons to be
nominated in the specified3
manner, by
the Central Government.]
4
[(3) No person holding a post under the Central
Government or a State Government shall be
eligible for election to the Council under clause
(a) of sub-section (2).
(4) No person who has been auditor of the
Institute shall be eligible for election to the
Council under clause (a) of sub-section (2),
for a period of three years after he ceases to
be an auditor.]
5
[10. Re-election or re-nomination to Council
A member of the Council, elected or nominated under
sub-section (2) of Section 9, shall be eligible for re-election
or, as the case may be, re-nomination:
Provided that no member shall hold the office for
more than three consecutive terms:
Provided further that a member of the Council, who
is or has been elected as President under sub-section (1) of
Section 12, shall not be eligible for election or nomination as
a member of the Council.]
6
[10A. Settlement of dispute regarding election
In case of any dispute regarding any election under
clause (a) of sub-section (2) of Section 9, the aggrieved
person may make an application within thirty days from
the date of declaration of the result of election to the
Secretary of the Institute, who shall forward the same to
the Central Government.
20
10B. Establishment of Tribunal
(1) On receipt of any application under Section
10A, the Central Government shall, by
notification, establish a Tribunal consisting of a
Presiding Officer and two other Members to
decide such dispute and the decision of such
Tribunal shall be final.
(2) A person shall not be qualified for
appointment,−
(a) as a Presiding Officer of the Tribunal
unless he has been a member of the
Indian Legal Service and has held a
post in Grade I of the service for at
least three years;
(b) as a Member unless he has been a
member of the Council for at least one
full term and who is not a sitting
member of the Council or who has not
been a candidate in the election under
dispute; or
(c) as a Member unless he holds the post of
a Joint Secretary to the Government of
India or any other post under the
Central Government carrying a scale of
pay which is not less than that of a
Joint Secretary to the Government of
India.
(3) The terms and conditions of service of the
Presiding Officer and Members of the Tribunal,
their place of meetings and allowances shall be
such as may be specified.
(4) The expenses of the Tribunal shall be borne
by the Council.]
21
11. Nomination in default of election or nomination
If any body of persons referred to in Section 9 fails
to elect any of the members of the Council which it is
empowered under that Section to elect, the Central
Government may nominate a person duly qualified to fill the
vacancy, and any person so nominated shall be deemed to
be a member of the Council as if he had been duly elected.
12. President and Vice-President
(1) The Council at its first meeting shall elect two
of its members to be respectively the President
and the Vice-President thereof, and so often as
the office of the President or the Vice-President
becomes vacant the Council shall choose
another person to be the President or the VicePresident as the case may be:
Provided that on the first constitution of the
Council a member of the Council nominated
in this behalf by the Central Government shall
discharge the functions of the President, until
such time as a President is elected under the
provisions of the sub-section.
(2) The President shall be the Chief Executive
Authority of the Council.
(3) The President or the Vice-President shall hold
office for a period of one year from the date
on which he is chosen but so as not to extend
beyond his term of office as a member of the
Council, and, subject to his being a member
of the Council at the relevant time, he shall
be eligible for re-election 7
[under sub-section
(1)]
22
(4) 8[On the expiration of the duration of the
Council, the 9
[President and the VicePresident] of the Council, at the time of such
expiration] shall continue to hold office and
discharge such administrative and other
duties as may be prescribed until such time
as a new 10[President and the Vice-President]
shall have been elected and shall have taken
over 11[charge of their duties.]
13. Resignation of membership and casual
vacancies
(1) Any member of the Council may at any time
resign his membership by writing under his
hand addressed to the President, and the seat
of such member shall become vacant when
such resignation is notified in the Official
Gazette.
(2) A member of the Council shall be deemed to
have vacated his seat if he is declared by the
Council to have been absent without sufficient
excuse from three consecutive meetings of the
Council, 12[or he has been found guilty of any
professional or other misconduct and
awarded penalty of fine,] or if his name is,
for any cause, removed from the Register
under the provisions of Section 20.
(3) A casual vacancy in the Council shall be filled
by fresh election from the constituency
concerned or by nomination by the Central
Government, as the case may be, and the
person elected or nominated to fill the
vacancy shall hold office until the dissolution
of the Council:
13[Provided that no election shall be held to
fill a casual vacancy occurring within 14[one
23
year] prior to the date of the expiration of the
duration of the Council, but such a vacancy
may be filled by nomination by the Central
Government after consultation with the
President of the Council.]
(4) No act done by the Council shall be called in
question on the ground merely of the
existence of any vacancy in, or defect in the
constitution of, the Council.
14. Duration and dissolution of Council
15[(1)] The duration of any Council constituted
under this Act shall be three years from the
date of its first meeting, on the expiry of
which it shall stand dissolved and a new
Council constituted in accordance with the
provisions of this Act.
16[(2) Notwithstanding the expiration of the duration
of a Council (hereinafter referred to as the
former Council), the former Council shall
continue to exercise its functions until a new
Council is constituted in accordance with the
provisions of this Act, and on such
constitution, the former Council shall stand
dissolved.]
17[15. Functions of Council
(1) The Institute shall function under the overall
control, guidance and supervision of the
Council and the duty of carrying out the
provisions of this Act shall be vested in the
Council.
(2) In particular, and without prejudice to the
generality of the foregoing powers, the duties
of the Council shall include −
24
(a) to approve academic courses and their
contents;
(b) the examination of candidates for
enrolment and the prescribing of fees
therefor;
(c) the regulation of the engagement and
training of articled and audit
assistants;
(d) the prescribing of qualifications for
entry in the Register;
(e) the recognition of foreign qualifications
and training for the purposes of
enrolment;
(f) the granting or refusal of certificates of
practice under this Act;
(g) the maintenance and publication of a
Register of persons qualified to practice
as chartered accountants;
(h) the levy and collection of fees from
members, examinees and other
persons;
(i) subject to the orders of the appropriate
authorities under the Act, the removal of
names from the Register and the
restoration to the Register of names
which have been removed;
(j) the regulation and maintenance of the
status and standard of professional
qualifications of members of the
Institute;
25
(k) the carrying out, by granting financial
assistance to persons other than
members of the Council or in any other
manner, of research in accountancy;
(l) the maintenance of a library and
publication of books and periodicals
relating to accountancy;
(m) to enable functioning of the Director
(Discipline), the Board of Discipline, the
Disciplinary Committee and the Appellate
Authority constituted under the
provisions of this Act;
(n) to enable functioning of the Quality
Review Board;
(o) consideration of the recommendations of
the Quality Review Board made under
clause (a) of Section 28B and the
details of action taken thereon in its
annual report; and
(p) to ensure the functioning of the Institute
in accordance with the provisions of this
Act and in performance of other
statutory duties as may be entrusted
to the Institute from time to time.]
18[15A. Imparting education by Universities and
other bodies
(1) Subject to the provisions of this Act, any
University established by law or any body
affiliated to the Institute, may impart
education on the subjects covered by the
academic courses of the Institute.
26
(2) The Universities or bodies referred to in subsection (1) shall, while awarding degree,
diploma or certificate or bestowing any
designation, ensure that the award or
designation do not resemble or is not identical
to one awarded by the Institute.
(3) Nothing contained in this Section shall enable a
University or a body to adopt a name or
nomenclature which is in any way similar to
that of the Institute.]
19[16. Officers and employees, salary, allowances,
etc.
(1) For the efficient performance of its duties, the
Council shall−
(a) appoint a Secretary to perform such
duties as may be prescribed;
(b) appoint a Director (Discipline) to
perform such functions as are assigned
to him under this Act and the rules and
regulations framed thereunder;
(2) The Council may also−
(a) appoint such other officers and
employees as it considers necessary;
(b) require and take from the Secretary or
from any other officer or employee such
security for the due performance of his
duties, as the Council considers
necessary;
(c) prescribe the salaries, fees, allowances
of the officers and employees and their
terms and conditions of service;
27
(d) with the previous sanction of the Central
Government, fix the allowances of the
President, Vice-President and other
members of the Council and members
of its Committees.
(3) The Secretary of the Council shall be entitled
to participate in the meetings of the Council
but shall not be entitled to vote thereat.]
17. Committees of the Council
(1) The Council shall constitute from amongst its
members the following Standing Committees,
namely :−
(i) an Executive Committee,
(ii) an Examination Committee, and
20[(iii) a Finance Committee.]
21[(2) The Council may also form such other
committees from amongst its members as it
consider necessary for the purpose of carrying
out the provisions of this Act, and any
Committee so formed may, with the sanction
of the Council, co-opt such other members of
the Institute not exceeding one-third of the
members of the committee as it thinks fit, and
any member so co-opted shall be entitled to
exercise all the rights of a member of the
committee.
(3) Each of the Standing Committees shall consist
of the President and the Vice-President ex
officio, and minimum of three and maximum of
five members to be elected by the Council
from amongst its members.]
28
(4) The President and the Vice-President of the
Council shall be the Chairman and ViceChairman respectively of each of the Standing
Committees.
(5) Every member of the Standing Committee
other than the Chairman and the ViceChairman shall hold office for one year from
the date of his election, but, subject to being a
member of the Council, he shall be eligible for
re-election.
(6) The Standing Committees shall exercise such
functions and be subject to such conditions in
the exercise thereof as may be prescribed.
18. Finances of the Council
(1) There shall be established a fund under the
management and control of the Council into
which shall be paid all moneys received by the
Council and out of which shall be met all
expenses and liabilities properly incurred by
the Council.
(2) The Council may invest any money for the
time being standing to the credit of the fund in
any Government security or in any other
security approved by the Central Government.
22[(3) The Council shall keep proper accounts of
the fund distinguishing capital from revenue
in the manner prescribed.
(4) The Council shall prepare in the manner
prescribed and approve, prior to the start of
the financial year, an annual financial
statement (the budget) indicating all its
29
anticipated revenues as well as all proposed
expenditures for the forthcoming year.
(5) The annual accounts of the Council shall be
prepared in such manner as may be prescribed
and be subject to audit by a chartered
accountant in practice to be appointed
annually by the Council:
Provided that no member of the Council or a person
who has been a member of the Council during the last four
years or a person who is in partnership with such member
shall be eligible for appointment as an auditor under this
sub-section:
Provided further that, in the event it is brought to
the notice of the Council that the accounts of the Council
do not represent a true and fair view of its finances, then,
the Council may itself cause a special audit to be
conducted:
Provided also that, if such information, that the
accounts of the Council do not represent a true and fair
view of its finances, is sent to the Council by the Central
Government, then, the Council may, wherever appropriate
cause a special audit or take such other action as it
considers necessary and shall furnish an action taken report
on it to the Central Government.]
23[(5A) As soon as may be practicable at the end of
each year, the Council shall circulate the
audited accounts to its members at least
fifteen days in advance and consider and
approve these accounts in a special meeting
convened for the purpose.
(5B) The Council shall cause to be published in the
Gazette of India not later than the 30th day of
September of the year next following, a copy
of the audited accounts and the Report of the
30
Council for that year duly approved by the
Council and copies of the said accounts and
Report shall be forwarded to the Central
Government and to all the members of the
Institute.]
(6) The Council may borrow from a scheduled
bank, as defined in the Reserve Bank of India
Act, 1934, (II of 1934) or from the Central
Government−
(a) any money required for meeting its
liabilities on capital account on the
security of the fund or on the security
of any other assets for the time being
belonging to it, or
(b) for the purpose of meeting current
liabilities pending the receipt of income,
by way of temporary loan or overdraft.
____________________
1 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 5th
September, 2006:−
“(2) The Council shall be composed of the following persons,
namely :−
A[(a) not more than twenty-four persons elected by members
of the Institute] from amongst the fellows of the Institute
chosen in such manner and from such regional constituencies as
may be specified in this behalf by the Central Government by
notification in the Official Gazette;B
(b) C[six] persons nominated by the Central Government.”
ASubstituted for the words, “persons elected by members of the
Institute” by the Chartered Accountants (Amendment) Act,
1959.
BFor the Government Notification, please see Appendix No. (12).
CSubstituted for the word, “five” by the Chartered Accountants
(Amendment) Act, 1959.
31
2 Rules made by the Central Government by Notification No.
G.S.R.534(E) have been published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i) dated 5th
September, 2006 and have come into force from that date.
3 Rules made by the Central Government by Notification No.
G.S.R.490(E) have been published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i) dated 19th
August, 2006 and have come into force from that date.
4 Inserted by the Chartered Accountants (Amendment) Act, 2006
and came into force w.e.f. 5th September, 2006.
5 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 8th August,
2006 :−
A[“10. Mode of election to the Council
(1) Elections under clause (a) of sub-section (2) of Section 9
shall be conducted in the prescribed manner.
(2) Where any dispute arises regarding any such election,
the matter shall be referred by the Council to a Tribunal
appointed by the Central Government in this behalf and the
decision of such Tribunal shall be final:
Provided that no such reference shall be made except on an
application made to the Council by an aggrieved party within
thirty days from the date of the declaration of the result of the
election.
(3) The expenses of the Tribunal shall be borne by the
Council.”]
AThis Section 10 was earlier substituted, for the following, by
the Chartered Accountants (Amendment) Act, 1959 :−
“10. Mode of election to Council
(1) Elections under clause (a) of sub-section (2) of Section 9
shall be conducted in the prescribed manner:
Provided that the first election under the said clause shall be held
in such manner as the Central Government may prescribe*.
32
(2) Where any dispute arises regarding any such election,
the matter shall be referred to a Tribunal appointed by the
Central Government in this behalf and the decision of such
Tribunal shall be final.”
*For Government Notification regarding election to the First
Council, please see Gazette of India Extraordinary dated 1st
June, 1949.
6,
12&23 Inserted by the Chartered Accountants (Amendment) Act, 2006
and came into force w.e.f. 17th November, 2006.
7&18 Inserted by the Chartered Accountants (Amendment) Act, 2006
and came into force w.e.f. 8th August, 2006.
8 Substituted for the words, “On the dissolution of the Council, the
President of the Council at the time of such dissolution” by the
Chartered Accountants (Amendment) Act, 1959.
9&10 Substituted for the word, “President”, in both the places by the
Chartered Accountants (Amendment) Act, 2006 and came into
force w.e.f. 8th August, 2006.
11 Substituted for the words, “charge of his duties” by the
Chartered Accountants (Amendment) Act, 2006 and came into
force w.e.f. 8th August, 2006.
13&16 Inserted by the Chartered Accountants (Amendment) Act, 1959.
14 Substituted for the words, “six months” by the Chartered
Accountants (Amendment) Act, 2006 and came into force w.e.f.
17th November, 2006.
15 Numbered as sub-section (1) by the Chartered Accountants
(Amendment) Act, 1959.
17 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 17th
November, 2006 :−
“15. Functions of the Council
(1) The duty of carrying out the provisions of this Act shall
be vested in the Council.
(2) In particular, and without prejudice to the generality of
the foregoing power, the duties of the Council shall include —
33
(a) the examination of candidates for enrolment and
the prescribing of fees therefor;
(b) the regulation of the engagement and A[training
of articled and audit clerks];
(c) the prescribing of qualifications for entry in the
Register;
(d) the recognition of foreign qualifications and
training for purposes of enrolment;
(e) the granting or refusal of certificates of practice
under this Act;
(f) the maintenance and publication of a Register of
persons qualified to practise as chartered accountants;
(g) the levy and collection of fees from B[………]
members, examinees and other persons;
(h) the removal of names from the Register and the
restoration to the Register of names which have been
removed;
(i) the regulation and maintenance of the status
and standard of professional qualifications of C[members
of this Institute];
(j) the carrying out, by financial assistance to
persons other than members of the Council or in any
other manner, of research in accountancy;
(k) the maintenance of a library and publication of
books and periodicals relating to accountancy; and
(l) the exercise of disciplinary powers conferred by
this Act.”
ASubstituted for the words, “Articled clerks” by the
Chartered Accountants (Amendment) Act, 1959.
BThe words, “chartered accountants, associate,” were
deleted by the Chartered Accountants (Amendment) Act,
1959.
CSubstituted for the words, “chartered accountants” by
the Chartered Accountants (Amendment) Act, 1959.
34
19 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 17th
November, 2006 :−
“16. Staff, remuneration and allowances
(1) For the efficient performance of its duties, the Council
may −
(a) appoint a Secretary who may also, if so decided
by the Council, act as Treasurer;
(b) appoint such other officers and servants as it
deems necessary;
(c) require and take from the Secretary or from any
other officer or servant of the Council such security for
the due performance of his duties, as the Council
considers necessary;
(d) fix the salaries, fees, allowances and other
conditions of service of the officers and servants of the
Council;
(e) with the previous sanction of the Central
Government, fix the allowances of the President, VicePresident and other members of the Council A[and
members of its Committees].
(2) Notwithstanding anything contained in sub-section (1),
on the first constitution of the Council the Secretary shall be a
person appointed by the Central Government in consultation
with the Council, and he shall hold office during the pleasure of
the Central Government, but so as not to exceed a period of
three years from the date of his appointment.
B[(3) The Secretary of the Council shall be entitled to
participate in the meetings of the Council but shall not be
entitled to vote thereat.]”
A&BInserted by the Chartered Accountants (Amendment) Act,
1959.
20 Substituted for the words, “a Disciplinary Committee” by the
Chartered Accountants (Amendment) Act, 2006 and came into
force w.e.f. 17th November, 2006.
35
21 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 17th
November, 2006 :−
A[“(2) The Council may also form such other committees from
amongst its members as it deems necessary for the purpose of
carrying out the provisions of this Act, and any committee so
formed may, with the sanction of the Council, co-opt such
other members of the Institute not exceeding two-thirds of the
members of the committee as the committee thinks fit, and
any member so co-opted shall be entitled to exercise all the
rights of a member of the committee.]
(3) Each of the Standing Committees shall consist of the
President and the Vice-President ex-officio, and three other
members of the Council elected by the Council:
Provided that in the case of the Disciplinary Committee, out of
the members to be elected, two shall be elected by the
Council, and the third nominated by the Central Government
from amongst the persons nominated to the Council by the
Central Government.”
AThis sub-section (2) was earlier substituted, for the following,
by the Chartered Accountants (Amendment) Act, 1959 :−
“(2) The Council may also form such other committees from
amongst its members as it deems necessary for the purpose of
carrying out the provisions of this Act.”
22 Substituted, for the following, by the Chartered Accountants
(Amendment) Act, 2006 and came into force w.e.f. 17th
November, 2006 :−
“(3) The Council shall keep proper accounts of the fund
distinguishing capital from revenue.
(4) The annual accounts of the Council shall be subject to
audit by a chartered accountant A[in practice] to be appointed
annually by the Council:
Provided that no member of the Council or a person who is in
partnership with such member shall be eligible for appointment
as an auditor under this sub-section.
(5) As soon as may be practicable at the end of each year,
but not later than the 30th day of September of the year next
following, the Council shall cause to be published in the Gazette
of India a copy of the audited accounts and the Report of the
36
Council for that year and copies of the said accounts and Report
shall be forwarded to the Central Government and to all the
members of the Institute.”
AInserted by the Chartered Accountants (Amendment) Act,
1959.