1
MCA not in favour of CS profession name change on 11th September 2010, 9:51 am
Club Exe
CSoC Super Master
The Parliamentary Standing Committee on Finance is in favour of allowing Company Secretaries to be partners in Limited Liability Partnerships (LLP).
This was one of the recommendations made by the Standing Committee in a report tabled in the Lok Sabha on Tuesday.
It relates to the Company Secretaries Amendment Bill, 2010, and is expected to be taken up in the winter session of Parliament.
Limited Liability Partnership is a vehicle that can enable professionals from varied areas such as Law, Chartered Accountancy and Company Secretaryship, to come together and form a partnership that can offer holistic business solutions to a client. The liability of the partners in the LLPs is limited to their agreed contribution in the vehicle.
LLPs are common organisation structures in the western world, but have found favour in India only recently. In order to enable members of the Institute of Company Secretaries (ICSI) to form limited liability partnerships as defined by the LLP Act, 2008, the Company Secretaries Amendment Bill, 2010, seeks to amend the Company Secretaries Act, 1980.
Agreement
The Committee expressed agreement with the amendment proposals of the Bill to this end which inter-alia seek to add in the Act, the definitions of ‘firm', ‘partner', ‘partnership' and ‘sole proprietorship,' in line with the LLP Act, and recommend the same for consideration.
Recommendations made by the ICSI regarding the change in name of the institute and qualification of the Secretary did not find favour with the Ministry of Corporate Affairs (MCA).
The Ministry rejected the recommendation for the change in the name of the institute from Company Secretaries of India to Chartered Secretaries of India. This was on the grounds that after becoming a Republic in 1950, the Government does not issue ‘charters' with the exception of Chartered Accountants of 1949, which continues to follow the British practice.
Deletion of words
The ICSI wanted the Government to reinstate the words “the council shall appoint a Secretary who shall be a member of the Institute.”
The Ministry rejected the recommendation on the basis of the reasoning that the deletion of the words provides wider scope for the institute to appoint a more competent person than a member of the same institute.
The deleted words cannot be reinstated as similar provisions were made in the Chartered Accountancy (CA) and Cost and Works Accountancy (CWA) Acts in 2006, and the ICAI and ICWAI have not objected to the existing provisions.
Nevertheless, the decision to appoint a secretary rests with the Council and the Government will not interfere in that decision, it said.
Source: http://www.blonnet.com/2010/09/02/stories/2010090252310500.htm
This was one of the recommendations made by the Standing Committee in a report tabled in the Lok Sabha on Tuesday.
It relates to the Company Secretaries Amendment Bill, 2010, and is expected to be taken up in the winter session of Parliament.
Limited Liability Partnership is a vehicle that can enable professionals from varied areas such as Law, Chartered Accountancy and Company Secretaryship, to come together and form a partnership that can offer holistic business solutions to a client. The liability of the partners in the LLPs is limited to their agreed contribution in the vehicle.
LLPs are common organisation structures in the western world, but have found favour in India only recently. In order to enable members of the Institute of Company Secretaries (ICSI) to form limited liability partnerships as defined by the LLP Act, 2008, the Company Secretaries Amendment Bill, 2010, seeks to amend the Company Secretaries Act, 1980.
Agreement
The Committee expressed agreement with the amendment proposals of the Bill to this end which inter-alia seek to add in the Act, the definitions of ‘firm', ‘partner', ‘partnership' and ‘sole proprietorship,' in line with the LLP Act, and recommend the same for consideration.
Recommendations made by the ICSI regarding the change in name of the institute and qualification of the Secretary did not find favour with the Ministry of Corporate Affairs (MCA).
The Ministry rejected the recommendation for the change in the name of the institute from Company Secretaries of India to Chartered Secretaries of India. This was on the grounds that after becoming a Republic in 1950, the Government does not issue ‘charters' with the exception of Chartered Accountants of 1949, which continues to follow the British practice.
Deletion of words
The ICSI wanted the Government to reinstate the words “the council shall appoint a Secretary who shall be a member of the Institute.”
The Ministry rejected the recommendation on the basis of the reasoning that the deletion of the words provides wider scope for the institute to appoint a more competent person than a member of the same institute.
The deleted words cannot be reinstated as similar provisions were made in the Chartered Accountancy (CA) and Cost and Works Accountancy (CWA) Acts in 2006, and the ICAI and ICWAI have not objected to the existing provisions.
Nevertheless, the decision to appoint a secretary rests with the Council and the Government will not interfere in that decision, it said.
Source: http://www.blonnet.com/2010/09/02/stories/2010090252310500.htm
