The Hindu Business Line : Composition of council, expenditure issues

THE Institute of Chartered Accountants of India (ICAI) has decided to make formal representation to the Department of Company Affairs on the Chartered Accountants (Amendment) Bill, 2003.

"We will place our views before the DCA on a host of proposals including the composition of the (central) council, issues on expenditure relating to the appellate authority and also on the matter of professional misconduct," the President of ICAI, Mr R. Bupathy, told Business Line.

The ICAI's Central Council, during its three-day meeting here from January 8-10, is understood to have debated, among other issues, extensively on the various proposals specified in the Bill. Chartered accountants see the Bill as an "attack on the autonomy of the Central Council."

The ICAI is not in favour of the Government's proposal to expand the representation of government nominees on the council from the current 20 per cent to 25 per cent.

"Their main idea is to increase their hold on the ICAI council under the guise of achieving harmonisation between the functioning of three professional bodies. From a level of six nominees in a total strength of 30 members, they want the strength of Union Government nominees in the ICAI council to increase to 10 and also take the total strength of the council to 40," an ICAI council member said.

The member highlighted that a majority of the existing set of government nominees have been playing a "dormant role" in the functioning of the central council.

While there may be a case for expanding the total strength of the council, the ICAI is of the view that there is no justification for increasing the proportion of government representation from 20 per cent to 25 per cent.

Another issue that is agitating the chartered accountants community is the proposal that requires the ICAI council to pay the allowances of the chairman and members of the proposed appellate authority for hearing out disciplinary matters.

"An issue of independence can be raised. The Bill provides that the council can go in for appeal on a matter to the appellate authority. How appropriate would it be for the council to seek justice from a body whose Chairman and members are receiving allowances from the council itself? It should be the Centre that should bear the cost relating to the authority," an ICAI council member said.