CHAPTER – III Constitution, Functions, Duties and Authorities of the Council

Estimated reading: 10 minutes 164 views

Constitution of the Council: A Council, to take up necessary actions required to attain objectives of the Institute in a well-planned manner and to manage and supervise all activities of the Institute, shall be constituted.
(2) The Council shall, except as otherwise provided elsewhere in this Act, exercise all authority and discharge all duties conferred on and assigned to the Institute subject to the Act and Regulations and Bye-laws framed under this Act.
(3) The Council shall consist of the following Council members:-
(a) Ten persons elected by and amongst Chartered Accountant members -Member
(b) Four persons elected by and amongst Registered Auditors -Member
(c) Three persons nominated by His Majesty’s Government, upon the recommendation of the Auditor General, from amongst the persons well experienced in the field of accounting profession. -Member
(4) The Council members shall elect a President and a Vice-President from the Fellow Chartered Accountants (F.C.A) Council members referred to in clause (a) of sub-section (3).
(5) The term of office of the President and the Vice-President shall be of one year and upon expiry of the term of office, they shall be eligible to be elected for one more term.
(6) The term of office of the Council members shall be of three years and upon expiry of the term of office, they shall be eligible to be re-elected or re-nominated.
(7) The procedures relating to the election of Council members shall be as prescribed.
(8) The functions, duties and authorities of the President and the VicePresident shall be as prescribed.

Circumstances Wherein the Council Member’s Seat to Remain Vacant: (1) The seat of a Council member shall be deemed to remain vacant, if :
(a) He ceases to be a member of the Institute, Provided that this provision shall not be applicable to the nominated Council member.
(b) The Council accepts his resignation,
(c) He, without giving a notice with reason, absconds himself from three consecutive meetings of the Council,
(d) His term of office expires,
(e) His non-compliance with the code of conduct referred to in Section 34 is proved,
(f) He dies.
(2) Pursuant to clause (b) of sub-section (1), the President shall tender resignation to the Vice-President and other Council members to the President.

Vacancy and Fulfillment: (1) The Council shall, if any seat of any Council member elected pursuant to clause (a) or (b) of sub section (3) of Section 7 turns vacant due to death or resignation or disqualification to continue as a member of the Institute pursuant to the other provisions of this Act, designate any member as Council member for the remaining term of office, provided the remaining period of such vacated office is of less than a year; and if such term is of more than a year, the vacancy shall be filled through election.
(2) A seat, falling vacant owing to death or resignation of any Council member, nominated pursuant to clause (c) of sub-section (3) of Section 7, shall be fulfilled, for the remaining term of office, as per the procedure set forth in the same section.

Meeting and Decision of the Council: (1) The Executive Director shall convene the meeting of the Council on such date, time and place as fixed by the President.
(2) The Council shall generally meet six times a year, and the interval between two consecutive meetings shall not be of more than three months.
(3) The President shall chair meeting of the Council, and in his absence, the Vice-President; and in the absence of both, a Council member, selected by the Council members from amongst themselves, shall chair the meeting of the Council.
(4) If twenty-five percent of Council members request, in writing, to convene a Council meeting, the President shall order the Executive Director to summon such
meeting within fifteen days of such request.
(5) Presence of fifty-percent members shall be deemed to meet a quorum for the meeting of the Council.
(6) The majority opinion of the Council shall be deemed to be a decision of the Council and, in case of a tie, person chairing the meeting shall cast the deciding vote.
(7) The Executive Director shall authenticate decisions of the Council.
(8) The Council may, if it deems appropriate, invite any office bearer of His Majesty’s Government, any national or foreign expert, advisor, or any prominent person in the field accounting profession, to attend meeting of the Council as an observer.
(9) Other procedures relating to the meeting of the Council shall be as fixed by the Council itself.

Functions, Duties and Authority of the Council: The functions, duties and authority of the Council shall be as follows:-
(a) To conduct professional examinations for new entrants in accounting profession.
(b) To fix up procedures relating to the registration of members and members holding Certificate of Practice.
(c) To provide membership of appropriate class to applicants having acquired qualifications pursuant to Section 16.
(d) To optimum utilise available resources and means for the cause of development of accounting profession.
(e) To determine appropriate qualifications for manpower engaged in the accounting profession.
(f) To fix curriculum and practical training period required for obtaining membership of the Institute.
(g) To organize academic classes and training programmes by itself or in collaboration with any university or other academic institutions.
(h) To issue Certificates of Practice to members willing to carry on accounting profession.
(i) To offer career development opportunities in order to enhance efficiency of members.
(j) To monitor as to whether or not the members and Members holding Certificate of Practice have acted in conformity with the prescribed professional code of conduct.
(k) To initiate actions, in accordance with the recommendation of the Disciplinary Committee, against members holding Certificate of Practice for their acts and actions done in contravention of the professional code of conduct.
(l) To issue theoretical or practical guidance and guidelines in various aspects of accounting and auditing and to carry out other professional development activities as and when needed.
(m) To monitor and regulate so as to ensure the compliance of Accounting Standards and Standards on Auditing developed or recommended by Accounting Standards Board and Standards on Auditing Board”.
(n) To safeguard rights and interests of the members and to protect and promote their reputation.
(o) To render advice and suggestions to His Majesty’s Government for improvement in prevailing laws related with industry, commerce, finance, revenue and accounting profession.
(p) To acquire membership of the International Federation of Accountants and Regional and Sub-regional Federations, and establish contact with other foreign professional institutes.
(q) To recommend appropriate educational standards for account education, in consultation with university or any other educational institutions.
(r) To organize, as and when necessary, training, symposia and seminars to enhance professional efficiency of Registered Auditors.
(s) To conduct short-term or long-term training, workshops or symposia for the benefit of manpower involved accounting profession.
(t) To publish materials related with accounting profession.
(u) To establish a library containing materials related to profession.
(v) To determine procedures to be followed by Committees constituted by the Council.
(w) To approve budget of the Institute and arrange for the fund.
(x) To recruit staff, as required, for the Institute and fix their remuneration and other perks.
(x1) To install the mechanism of providing Continued Professional Education (CPE) to members.
(x2) To develop education system to produce Accounting Technicians and undertake other necessary actions in this regard.
(y) To carry out such other functions as prescribed by this Act or Regulations and Byelaws framed under this Act.
(z) To carry out any other functions that deem to be necessary to attain the objectives laid down by this Act.

Actions Not To Be Invalid: Any action undertaken according to decision of the Council, where any seat of any Council member has remained vacant or a person, without possessing qualifications required to be a Council member, has been elected or nominated as the Council member, shall not be invalid merely on the ground thereof.

Committees of the Council: (1) The Council, under its responsibility, may constitute following Standing Committees :-
(a) Disciplinary Committee,
(b) Examination Committee,
(c) Executive Committee,
(d) Professional Guidance Committee.
(2) The Council may, as per necessity, constitute other committees for the attainment of the objectives of the Institute.
(3) The functions, duties and powers of the Committees constituted pursuant to this section shall be as prescribed.
(4) The Committee constituted under Sub-section (1), shall not be so constituted that the members of one Committee, except the President and the VicePresident, are also included in another Committee.

Disciplinary Committee: (1) A Disciplinary Committee, comprising of following members, shall be constituted to recommend the Council to take necessary actions after investigation upon complains lodged against any action, contrary to this Act or Regulations or code of conduct framed under this Act, rendered by any member, or the Institute receives any information of such kind :-
(a) A FCA member designated by the Council from amongst the Council members referred to in clause (a) of sub-section (3) of Section 7 -Chairman
(b) Three persons nominated by the Council from amongst the Council members -Member
(c) Two persons nominated by the Council from amongst the members -Member
(d) One person nominated by the Auditor General -Member
(2) Notwithstanding anything contained in sub-section (1), the Chairman or members shall not be allowed to attend any meeting that hears complaint against the Chairman or member of the Disciplinary Committee for their actions contrary to this Act or the Regulations, Bye-laws or code of conduct framed under this Act.
(3) The procedures of the meeting of the Disciplinary Committee and the term of office of the Chairman and members of the Disciplinary Committee shall be as prescribed.
(4) The Disciplinary Committee shall have the authority, similar to a judicial court, in respect of summoning concerned person and investigating evidences and witnesses.
(5) The Disciplinary Committee shall recommend to the Council, along with its opinion and finding, for necessary action against a member, if found guilty, and the Council may, considering such a recommendation, impose any of the following punishment according to the degree of offense:-
(a) Reprimanding,
(b) Removing from the membership for a period up to five years,
(c) Prohibiting from carrying on the accounting profession for any particular period,
(d) Cancellation of the Certificate of Practice or membership.
(6) Any Council member against whom the Disciplinary Committee, after investigating upon the complaint of his action contrary to the Act or Regulations, Byelaws or code of conduct framed under the Act, has decided to recommend the Council to take necessary action, shall not be allowed to attend and to vote at the Council meeting where the Council is hearing at such recommendation.
(7) Before imposing a punishment referred to in sub-section (5), the Council shall provide reasonable opportunity to the concerned members to submit their clarification.
(8) The concerned member may, if he is not satisfied with the decision referred to in sub-section (5), file an appeal in the Appellate Court.

Executive Committee: (1) An Executive Committee, comprising of the following members, shall be constituted for carrying out day to day business of the Institute :-
(a) President -Chairman
(b) Vice-President -Vice-Chairman
(b) Two persons nominated by the Council from amongst the Council members -Member
(d) Executive Director -Member-Secretary
(2) The functions, duties and authorities of the Executive Committee and the procedures of its meeting shall be as prescribed.

Post a comment

Your email address will not be published.

Share this Doc

CHAPTER – III Constitution, Functions, Duties and Authorities of the Council

Or copy link

Contents
Discover Nepal's laws effortlessly. Our user-friendly platform simplifies legal understanding and accessibility, serving individuals throughout the country.
Working Hours : Mon-Fri, 09am-5pm