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CA Ravi Taori
Clause (2): accepts or agrees to accept any part of fees, profits or gains from a lawyer (Advocate), a chartered
accountant or broker engaged by such company, firm or person or agent or customer of such company, firm or
person by way of commission or gratification. (Shortcut-A BC )
2
2
Rationale
Ethics: The objective of this restriction is to ensure high ethical standards among members in employment.
Contractual Agreement: Members should not accept any amount from anyone that they are not entitled to
under their employment contract.
Misconduct: Any member who violates these rules, regardless of their employment status or whether they hold
a Certificate of Practice, would be guilty of misconduct.
PART III - Professional misconduct in relation to members of the Institute generally
(CNO-PE.1360) CLAUSE 1 -
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct,
if he
Clause (1) not being a fellow of the Institute, acts as a fellow of the Institute
Impersonation: This is essentially a form of impersonation or misrepresentation, which is considered a serious
professional misconduct.
(CNO-PE.1380) CLAUSE 2 Bare Text:
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct,
if he
Clause (2) does not supply the information called for, or does not comply with the requirements asked for, by
the Institute, Council or any of its Committees, Director (Discipline), Board of Discipline, Disciplinary
Committee, Quality Review Board or the Appellate Authority.
Analysis.
4 Bodies Related to ICAI: Institute, Council, its Committees, Quality Review Board
4 Bodies Related to Disciplinary Mechanism: Appellate Authority, Disciplinary Committee, Board of
Discipline, Director (Discipline)
Case Study:
Proprietor of a non-CA firm: A Chartered Accountant failed to disclose his engagement as a proprietor of a
non-chartered accountant's firm while holding a certificate of practice.
Director of a company: The same individual did not provide details of his role as a Director of a company,
despite multiple letters from the Institute that remained unanswered.
Misconduct: This behaviour was found to be in violation of Clause (11) of Part I and Clauses (2) of Part III of
the First Schedule. As a result, the Chartered Accountant was deemed guilty under the mentioned clauses.
Case Study:
Unauthorised Training: A Chartered Accountant continued to train an articled clerk despite his name being
removed from the membership of the Institute.
Non-Responsiveness: The Chartered Accountant failed to respond to the Institute's request for an explanation
on how he was training the articled clerk without being a member.
Misconduct: This behaviour was found to be in violation of Clause (2) of Part III of the First Schedule. As a
result, the Chartered Accountant was deemed guilty under the mentioned clause.
(CNO-PE.1400) CLAUSE 3 Bare Text:
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct,
if he Clause (3) while inviting professional work from another chartered accountant or while responding to
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