*[FIRST SCHEDULE
[See sections 21 (3), 21A(3) and 22]
PART - I
Professional misconduct in relation to company secretaries
in practice
A Company Secretary in practice shall be deemed to be guilty
of professional misconduct, if he-
(1) allows any person to practice in his name as a Company
Secretary unless such person is also a Company Secretary in
practice and is in partnership with or employed by him;
(2) pays or allows or agrees to pay or allow, directly or
indirectly, any share, commission or brokerage in the fees
or profits of his professional business, to any person other
than a member of the Institute or a partner or a retired partner
or the legal representative of a deceased partner, or a member
of any other professional body or with such other persons
having such qualifications as may be prescribed, for the purpose
of rendering such professional services from time to time
in or outside India.
Explanation.- In this item, "partner" includes
a person residing outside India with whom a Company Secretary
in practice has entered into partnership which is not in contravention
of item (4) of this Part;
(3) accepts or agrees to accept any part of the profits of
the professional work of a person who is not a member of the
Institute:
Provided that nothing herein contained shall be construed
as prohibiting a member from entering into profit sharing
or other similar arrangements, including receiving any share
commission or brokerage in the fees, with a member of such
professional body or other person having qualifications, as
is referred to in item (2) of this part;
(4) enters into partnership, in or outside India, with any
person other than a Company Secretary in practice or such
other person who is a member of any other professional body
having such qualifications as may be prescribed, including
a resident who but for his residence abroad would be entitled
to be registered as a member under clause (e) of sub-section
(1) of section 4 or whose qualifications are recognized by
the Central Government or the Council for the purpose of permitting
such partnerships;
(5) secures, either through the services of a person who
is not an employee of such company secretary or who is not
his partner or by means which are not open to a Company Secretary,
any professional business:
Provided that nothing herein contained shall be construed
as prohibiting any arrangement permitted in terms of items
(2), (3) and (4) of this Part;
(6) solicits clients or professional work, either directly
or indirectly, by circular, advertisement, personal communication
or interview or by any other means:
Provided that nothing herein contained shall be construed
as preventing or prohibiting-
(i) any company secretary from applying or requesting for
or inviting or securing professional work from another company
secretary in practice; or
(ii) a member from responding to tenders or enquiries issued
by various users of professional services or organizations
from time to time and securing professional work as a consequence;
(7) advertises his professional attainments or services,
or uses any designation or expressions other than Company
Secretary on professional documents, visiting cards, letterheads
or sign boards, unless it be a degree of a University established
by law in India or recognised by the Central Government or
a title indicating membership of the Institute of Company
Secretaries of India or of any other institution that has
been recognised by the Central Government or may be recognised
by the Council:
Provided that a member in practice may advertise through a
write up setting out the services provided by him or his firm
and particulars of his firm subject to such guidelines as
may be issued by the Council;
(8) accepts a position as a Company Secretary in practice
previously held by another Company Secretary in practice without
first communicating with him in writing;
(9) charges or offers to charge, accepts or offers to accept,
in respect of any professional employment, fees which are
based on a percentage of profits or which are contingent upon
the findings, or results of such employment, except as permitted
under any regulation made under this Act;
(10) engages in any business or occupation other than the
profession of Company Secretary unless permitted by the Council
so to engage:
Provided that nothing contained herein shall disentitle a
Company Secretary from being a director of a company except
as provided in the Companies Act, 1956 (1 of 1956);
(11) allows a person not being a member of the Institute
in practice, or a member not being his partner to sign on
his behalf or on behalf of his firm, anything which he is
required to certify as a Company Secretary, or any other statements
relating thereto.
PART II
Professional misconduct in relation to members of the Institute
in service
A member of the Institute (other than a member in practice)
shall be deemed to be guilty of professional misconduct, if
he, being an employee of any company, firm or person-
(1) pays or allows or agrees to pay, directly or indirectly,
to any person any share in the emoluments of the employment
undertaken by him;
(2) accepts or agrees to accept any part of fees, profits
or gains from a lawyer, a Company Secretary 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.
PART III
Professional misconduct in relation to members of the Institute
generally
A member of the Institute, whether in practice or not, shall
be deemed to be guilty of professional misconduct, if he-
(1) not being a Fellow of the Institute, acts as a Fellow
of the Institute;
(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;
(3) while inviting professional work from another Company
Secretary or while responding to tenders or enquiries or while
advertising through a write up, or anything as provided for
in items (6) and (7) of Part I of this Schedule, gives information
knowing it to be false.
PART IV
Other misconduct in relation to members of the Institute
generally
A member of the Institute, whether in practice or not, shall
be deemed to be guilty of other misconduct, if-
(1) he is held guilty by any civil or criminal court for
an offence which is punishable with imprisonment for a term
not exceeding six months;
(2) in the opinion of the Council, he brings disrepute to
the profession or the institute as a result of his action
whether or not related to his professional work.
*[Substituted by Company Secretaries (Amendment) Act, 2006,
section 32, w.e.f 8-8-2006]
|
