Page 420 - CA Final PARAM Digital Book.

➢ As per Clause (11) of Part I of First Schedule to the Chartered Accountants Act, 1949
A Chartered Accountant in practice shall not engage in any business or occupation other than the
profession of accountancy except with the permission of council.

➢ Regulation 190A to the Chartered Accountants Regulations, 1988
Part (B) of Appendix 10 to the Chartered Accountants Regulations, 1988 requires member of the
Institute in practice to engage in full-time or part-time employment after obtaining the specific and
prior approval of the Council.

Part III – Case Discussion
➢ In the instant case, Mr. J has accepted the full time salaried employment in addition to the practice
of Chartered Accountancy without obtaining permission of the Institute.

Part IV – Conclusion
➢ Mr. J will be held guilty since he has accepted the full time salaried employment in addition to the
practice of Chartered Accountancy without obtaining permission of the Institute. Further, Mr. J will
be held guilty of professional misconduct under Clause (1) of Part II of Second Schedule to the
Chartered Accountants Act, 1949 if contravenes any of the provisions of the Act since he has failed
to inform the Institute.

QNO First Schedule, Part I,Cl,11 --Specific Permission (Part Time Employment) Old Course – (N06E, PM17)
721.000 TITANIUM CNO – PE.1280
Mr. J.J. a practicing Chartered Accountant engages himself as part time finance manager of Quick
Return Securities Ltd. He is of the view that as both functions are independent, he need not take

permission from the Institute.
Answer Part I -- Relevant Laws
▪ Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ A Chartered Accountant is deemed to be guilty of professional misconduct if he engages in any
business other than the profession of Chartered Accountant unless permitted by the Council for the
same.

Part III – Case Discussion
➢ In the given case, Mr. J. J. a practicing Chartered Accountant is engaging himself as part time Finance
Manager without the permission of the Institute.

Part IV – Conclusion
➢ Mr. J.J. is deemed to be guilty of professional misconduct, which is misconduct attracted by Clause
(11) of Part I of First Schedule.

First Schedule, Part I,Cl,11 --Specific Permission (Promoter Old Course—(N20E)
QNO
721.500 Director & Involvement in Family Business)
TITANIUM CNO – PE.1280
CA AB, a practicing chartered accountant, is a promoter director of ABG Pvt. Ltd. and moreover he is
also a sleeping partner in his family business of garments manufacturing firm. Is CA. AB liable for
professional misconduct as per Chartered Accountant Act 1949?
Answer Clause (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949 debars a chartered
accountant in practice from engaging in any business or occupation other than the profession of
chartered accountancy unless permitted by the Council of the Institute so to engage.

Promoter/Promoter Director - There is no bar for a member to be a promoter / signatory to the
Memorandum and Articles of Association of any company. There is also no bar for such a promoter /
signatory to be a Director Simplicitor of that company irrespective of whether the object of the
company include areas which fall within the scope of the profession of chartered accounts. Therefore,
members are not required to obtain specific permission of the Council in such cases.

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