Disqualification of a Chartered Accountant
As we all know that just passing examination and completing 3 years of articleship, we can’t automatically becomes a Chartered accountant. We have to make an application to the council for getting our name registered in the Registrar of Members. Section 8 of Chartered Accountant Act, 1949 enumerates the circumstances under which a person cannot have his name registered or if such person is already a chartered accountant then his name shall be removed. Cases covered under section 8 are as follows: –
- If he has not attained the age of twenty one years at the time of making an application for registering in his name.
- If he is of unsound mind and is so adjudged by a competent court.
- If he is an undischarged insolvent.
- If he, being a discharged insolvent, has not obtained from the court a certificate stating that his insolvency was caused by misfortune without any misconduct on his part.
- If he has been convicted by a competent court, within or outside india, of an offence involving moral turpitude and punishable with transportation or imprisonment or of an offence, not of a technical nature, committed by him in his professional capacity unless in respect of the offence committed he has either been granted a pardon or, on an application made by him in this behalf, the central government has, by an order in writing, removed the disability.
- If he has been removed from the membership of institute on being found on inquiry to have been guilty of professional or other misconduct.
The name of the person can be removed by the council if they found him subject to any of the above disabilities. A person who has been removed from membership for a specified period, shall not be entitled to have his name entered in the registrar until the expiry of such period.
Penalty u/s 26
- No person other than a member of institute shall sign any document on behalf of a CA in practice or a firm of CA in his or its professional capacity.
- Any person who contravenes this section shall be punishable with a fine not less than Rs. 5,000 but could extend to Rs. 1,00,000 in the first conviction and on subsequent conviction with a fine not less than Rs. 10,000 but could extend to Rs. 2,00,000 along with an imprisonment of term which may extend to one year.
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