Page 384 - CA Final PARAM Digital Book.

▪ Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ As per Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949, a chartered
accountant in practice is deemed to be guilty of professional misconduct, if he solicits clients or
professional work either directly or indirectly by circular, advertisement, personal communication
or interview or by any other means.

However, nothing herein contained shall be construed as preventing or prohibiting, any chartered
accountant from applying or requesting for or inviting or securing professional work from another
chartered accountants in practice.

Part III – Case Discussion
➢ In the instant case, CA. N has written email to all the CA for securing professional work from them
and has not approached any other person or professional or communicated with any client,
Part IV – Conclusion
➢ Thus, as per exception to the Clause (6) CA. N is well within the regulation of the act and has not
committed any professional misconduct.

Author’s Note

If paper advertisement is given, it goes to everyone - “Guilty” If email sent only to CA’s - “Not Guilty”

First Schedule, Part I, Cl, 6 Clarification (Public Interview) Old Course – (N13E, PM17, SM17, M18E,
QNO TITANIUM CNO – PE.1140 / PE.1180 N19M, M21M, SM21, M22E)
673.000
New Course – (SM23)
Mr. Nigal, a Chartered Accountant in practice, delivered a speech in the national conference organized by the
Ministry of Textiles. While delivering the speech, he told to the audience that he is a management expert
and his firm provides services of taxation and audit at reasonable rates. He also requested the audience
to approach his firm of chartered accountants for these services and at the request of audience he also
distributed his business cards and telephone number of his firm to those in the audience. Comment.
Answer Part I -- Relevant Laws
▪ Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949

▪ Section 7 of the Chartered Accountants Act, 1949 read with Clause (7) of Part I of the First Schedule
to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949
A Chartered Accountant in practice shall be deemed to be guilty of misconduct if he solicits clients or
professional work either directly or indirectly by a circular, advertisement, personal communication or
interview or by any other means. Such a restraint has been put so that the members maintain their
independence of judgment and may be able to command respect from their prospective clients.

➢ Section 7 of the Chartered Accountants Act, 1949 read with Clause (7) of Part I of the First
Schedule to the Chartered Accountants Act, 1949
It prohibits advertising of professional attainments or services of a member. It also restrains a member
from using any designation or expression other than that of a chartered accountant in documents
through which the professional attainments of the member would come to the notice of the public.
Under the clause, use of any designation or expression other than chartered accountant for a chartered
accountant in practice, on professional documents, visiting cards, etc. amounts to a misconduct unless
it be a degree of a university or a title indicating membership of any other professional body recognised
by the Central Government or the Council.

Member may appear on television and films and agree to broadcast in the Radio or give lectures at
forums and may give their names and describe themselves as Chartered Accountants. Special
qualifications or specialized knowledge directly relevant to the subject matter of the programme may
also be given but no reference should be made, in the case of practicing member to the name and
address or services of his firm. What he may say or write must not be promotional of his or his
firm but must be an objective professional view of the topic under consideration.

Part III – Case Discussion

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