A bill further to amend the Chartered Accountants Act, 1949. BE it enacted by Parliament in the Sixty-first Year of the Republic of India.
Statement of Object
The Chartered Accountants Act, 1949 has been enacted to make provision for the regulation of the profession of the chartered accountants. The said Act was amended in 2006 by the Chartered Accountants (Amendment) Act, 2006, inter alia, to enable the members of the Institute of Chartered Accountants of India to form multi-disciplinary firms and offer multi-professional services in a competitive and commercial manner. 2. Subsequently, the Limited Liability Partnership Act, 2008 has been enacted to make provisions for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto. The limited liability partnership will be a separate legal entity, liable to the full extent of its assets, with the liability of the partners being limited to their agreed contribution in the limited liability partnership which may be of tangible or intangible nature or both tangible and intangible in nature. 3. It is proposed to extend the benefits of the Limited Liability Partnership Act, 2008 to the firms of chartered accountants under the Chartered Accountants Act, 1949 and to amend the provisions of that Act. 4. The Chartered Accountants (Amendment) Bill, 2010, inter alia, proposes to amend the Chartered Accountants Act, 1949 to,- (i) apply certain provisions of the Limited Liability Partnership Act, 2008 to the Chartered Accountants Act, 1949 in order to allow the members of the professional institute governed by the Chartered Accountants Act, 1949 to form the limited liability partnership and insert new definitions of firm, partner, partnership and sole proprietorship for the said purpose; (ii) amend the Chartered Accountants Act, 1949 on lines similar with the provisions of the Company Secretaries Act, 1980 so as to allow the professionals of the Institute of Chartered Accounts of India to form partnership with members of such other recognised professions. 5. The Bill seeks to achieve the above objectives. SALMAN KHURSHID. NEW DELHI; The 15th April, 2010. FINANCIAL MEMORANDUM Clause 2 and clause 3 of the Bill seeks to extend the benefits of the Limited Liability Partnership Act, 2008 to the firms of chartered accountants under the Chartered Accountants Act, 1949. The provisions of the Bill will not involve any expenditure of recurring or non-recurring nature from the Consolidated Fund of India. MEMORANDUM REGARDING DELEGATED LEGISLATION Clause 2 of the Bill seeks to amend sub-section (2) of section 2 of the Chartered Accountant Act, 1949 to empower the Council of the Institute of Chartered Accountants of India to make regulations for recognition of other professions with whom members of the Institute can enter into partnership. 2. The matters in respect of which the said regulations may be made are matters of procedure and administrative detail, and it is not practicable to provide for them in the proposed Bill itself. 3. The delegation of legislative power is, therefore, of a normal character.
Chartered Accountants (Amendment) Bill, 2010
Related Act
Chartered Accountants Act, 1949