ICSI welcomes bill to amend law governing company secretaries

This will help in effective supervision of the firms as well as streamline the process of registration and function of firms of company secretaries.The scope to deal with professional misconduct will also be widened with the inclusion of a member in his individual capacity or as partnerowner of the firm, the statement said.Once the amendments are in place, the council will also have the power to fix the fees various fees.The bill has also proposed the setting up of a coordination committee by ICSI, ICAI Institute of Chartered Accountants of India and ICoAI Institute of Cost Accountants of India.

ICSI on Friday welcomed the proposed changes to the laws governing company secretaries and said the amendments will widen the scope to deal with professional misconduct as disciplinary action can also be taken against a member in his or her capacity as a partner of a CS firm.

The government has introduced the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021, in the Lok Sabha on Friday. It also seeks to amend the Company Secretaries Act, 1980.

''The bill aimed at strengthening the disciplinary mechanism by making the disciplinary directorate independent will initiate the appointment of non-member, nominated by the central government, as Presiding Officer. ICSI also appreciates the time-bound disposal of cases proposed in the bill,'' the Institute of Company Secretaries of India (ICSI) said in a statement.

A new provision in the Act has been proposed for the registration and register of firms. Besides, names can be removed from the register of firms and reviewed before the ICSI council. This will help in effective supervision of the firms as well as streamline the process of registration and function of firms of company secretaries.

''The scope to deal with professional misconduct will also be widened with the inclusion of a member in his individual capacity or as partner/owner of the firm,'' the statement said.

Once the amendments are in place, the council will also have the power to fix the fees various fees.

The bill has also proposed the setting up of a coordination committee by ICSI, ICAI (Institute of Chartered Accountants of India) and ICoAI (Institute of Cost Accountants of India). The panel will comprise the President, Vice-President and Secretary of the council of each of the three institutes to help effectively develop and harmonise the professions.

Strengthening the disciplinary mechanisms, providing provision for time-bound disposal of cases against the members of the three institutes, addressing the conflict of interest between the institutes' administrative and disciplinary arms, and enhancing overall accountability are the bill's key objectives.

The bill was introduced in the Lower House by Corporate Affairs Minister Nirmala Sitharaman.

Chartered accountants, cost accountants and company secretaries come under the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980, respectively.

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