Civil

Centre introduces CA, CWA and CS (Amendment) Bill, 2021 in Lok Sabha

17.12.2021

The Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021, was introduced in the Lok Sabha. The bill aims to strengthen the disciplinary mechanisms, providing provision for time-bound disposal of cases against the members of the three institutes and enhance overall accountability. Finance and Corporate Affairs Minister Nirmala Sitharaman, stated that on account of changes in the country's economic and corporate environment, it has become necessary to amend the Acts. The changes would strengthen the existing mechanism and to ensure speedy disposal of the disciplinary cases.

Any firm aggrieved by the decision for refusal of registration may apply for review before the Council within one month from the date of such refusal. Clause 22 of the Bill seeks to substitute Section 21A of the Act to empower the Central Government to establish one or more Boards of Discipline, each comprising of a Presiding Officer to be nominated by the Central Government and two members of whom one shall be nominated by the Central Government and one member to be nominated by the Council. It further seeks to fix a timeframe for completion of inquiry by Boards of Discipline, empower the Central Government to make rules for procedures to be followed by the Boards of Discipline, modify penalty provisions for misconduct by members of the Institute. As per the recommendations, the council of the respective institutes would be empowered to determine various fees.

Clause 23 of the Bill seeks to substitute Section 21B of the Act to empower the Central Government to establish one or more Disciplinary Committees, each comprising of a Presiding Officer to be nominated by the Central Government and four members of which two shall be nominated by the Central Government and two members to be nominated by the Council. Clause 28 of the Bill seeks to amend Section 24 of the Act to enhance penalties for falsely claiming to be a member of the Institute. The bill further empowers the Council to remove names from the Register on non-payment of penalties imposed under the Bill.

Tags : Chartered Accountants Bill Introduction

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