Constitution of the Council of Institute.
9. (1) There shall be a Council of the Institute for the management of the affairs of the Institute
and for discharging the functions assigned to it by or under this Act.
1
[(2) The Council shall be composed of the following persons, namely:—
(a) not more than fifteen persons elected by the members of the Institute, from amongst the
fellows of the Institute chosen in such manner and from such regional constituencies as may
be specified:
________________
1Substituted by the Cost and Works Accountants (Amendment) Act, 2006, with effect from 17.11.2006. Prior to its
substitution, sub-section (2) read as under :
“(2) The Council shall be composed of—
(a) not more than twelve persons elected by members of the Institute from amongst the fellows of the Institute
chosen in such manner and from such regional constituencies as may be specified in this behalf by the Central
Government by notification in the Official Gazette; and
(b) not more than four persons nominated by the Central Government.”
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Provided that a fellow of the Institute, who has been found guilty of any professional or other
misconduct, and whose name is removed from the Register or has been awarded penalty of
fine, shall not be eligible to contest the election,—
(i) in case of misconduct falling under the First Schedule of this Act, for a period of three
years;
(ii) in case of misconduct falling under the Second Schedule of this Act, for a period of six
years, from the completion of the period of removal of name from the Register or
payment of fine, as the case may be;
(b) not more than five persons nominated in the specified manner by the Central Government.]
1
[(3) No person holding a post under the Central Government or a State Government shall be
eligible for election to the Council under clause (a) of sub-section (2).
(4) No person who has been auditor of the Institute shall be eligible for election to the Council
under clause (a) of sub-section (2) for a period of three years after he ceases to be an auditor.]
2
[Re-election or re-nomination to Council.
10. A member of the Council, elected or nominated under sub-section (2) of section 9, shall be
eligible for re-election or as the case may be, re-nomination:
Provided that no member shall hold the office for more than two consecutive terms:
Provided further that a member of the Council, who is or has been elected as President under
sub-section (1) of section 12, shall not be eligible for election or nomination as a member of the
Council.]
3
[Settlement of disputes regarding election.
10A. In case of any dispute regarding any election under clause (a) of sub-section (2) of section
9, the aggrieved person may make an application within thirty days from the date of declaration of
the result of election to the Secretary of the Institute, who shall forward the same to the Central
Government.
Establishment of Tribunal.
10B. (1) On receipt of any application under section 10A, the Central Government shall, by
notification, establish a Tribunal consisting of a Presiding Officer and two other Members to
decide such dispute and the decision of such Tribunal shall be final.
__________
1Sub-sections (3) and (4) inserted, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f 17.11.2006.
2Substituted, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006. Prior to its substitution, section
10 read as under :
“10. Mode of election to Council.—(1) Elections under clause (a) of sub-section (2) of section 9 shall be conducted in
the prescribed manner :
Provided that the first election under the said clause shall be held in such manner as the Central Government may
specify in this behalf.
(2) Where any dispute arises regarding any such election, the matter shall be referred by the Council to a Tribunal
appointed by the Central Government in this behalf and the decision of such Tribunal shall be final :
Provided that no such reference shall be made except on an application made to the Council by an aggrieved party
within thirty days from the date of the declaration of the result of the election.
(3) The expenses of the Tribunal shall be borne by the Council.”
3Sections 10A and 10B inserted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f 17.11.2006.
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(2) A person shall not be qualified for appointment,—
(a) as a Presiding Officer of the Tribunal unless he has been a member of the Indian Legal
Service and has held a post in Grade I of the service for at least three years;
(b) as a Member unless he has been a member of the Council for at least one full term, and
who is not a sitting member of the Council or who has not been a candidate in the election
under dispute; or
(c) as a Member unless he holds the post of a Joint Secretary to the Government of India or
any other post under the Central Government carrying a scale of pay which is not less than
that of a Joint Secretary to the Government of India.
(3) The terms and conditions of service of the Presiding Officer and Members of the Tribunal,
their place of meetings and allowances shall be such as may be specified.
(4) The expenses of the Tribunal shall be borne by the Council.]
Nomination in default of election.
11. If the members of the institute fail to elect any member under clause (a) of sub- section (2) of
section 9 from any of the regional constituencies that may be specified under that clause, the
Central Government may nominate any duly qualified person from such constituency to fill the
vacancy, and any person so nominated shall be deemed to be a duly elected member of the
Council.
President and Vice-President.
12. (1) The Council at its first meeting shall elect two of its members to be respectively the
President and the Vice-President thereof, and so often as the office of the President or the VicePresident becomes vacant, the Council shall choose a person to be the President or the VicePresident, as the case may be:
Provided that on the first constitution of the Council a member of the Council nominated in this
behalf by the Central Government shall discharge the functions of the President, until such time
as a President is elected under the provisions of this sub-section.
(2) The President shall be the 1
[Head] of the Council.
(3) The President or the Vice-President shall hold office for a period of one year from the date on
which he is chosen but so as not to extend beyond his term of office as a member of the Council,
and, subject to his being a member of the Council at the relevant time, he shall be eligible for reelection 2
[under sub-section (1)]:
Provided that the President 2
[and the Vice-President] of the Council at the time of the expiration
of its duration shall continue to hold office until a new Council is constituted in accordance with
the provisions of this Act.
Resignation of membership and casual vacancies.
13. (1) Any member of the Council may at any time resign his membership by writing under his
hand addressed to the President, and the seat of such member shall become vacant when such
resignation is notified in the Official Gazette.
(2) A member of the Council shall be deemed to have vacated his seat if he is declared by the
Council to have been absent without sufficient excuse from three consecutive meetings of the
Council 2
[or he has been found guilty of any professional or other misconduct and awarded
penalty of fine,] or if his name is, for any cause, removed from the Register under the provisions
of section 20.
_________________
1Substituted for “Chief Executive Authority” by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006.
2
Inserted, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006.
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(3) A casual vacancy in the Council shall be filled by fresh election from the constituency
concerned or by nomination by the Central Government, as the case may be, and the person
elected or nominated to fill the vacancy shall hold office until the dissolution of the Council :
Provided that no election shall be held to fill a casual vacancy occurring within 3
[one year] prior to
the date of the expiration of the duration of the Council, but such a vacancy may be filled by
nomination by the Central Government after consultation with the President of the Council.
(4) No act done by the Council shall be called in question on the ground merely of the existence
of any vacancy in, or defect in the constitution of, the Council.
Duration and dissolution of Council.
14. (1) The duration of any Council constituted under this Act shall be 4
[four] years from the date
of its first meeting.
(2) Notwithstanding the expiration of the duration of a Council (hereinafter referred to as the
former Council), the former Council shall continue to exercise its functions under this Act until a
new Council is constituted in accordance with the provisions of this Act, and on such constitution,
the former Council shall stand dissolved.
5
[Functions of Council.
15. (1) The Institute shall function under the overall control, guidance and supervision of the
Council and the duty of carrying out the provisions of this Act shall be vested in the Council.
(2) In particular, and without prejudice to the generality of the foregoing powers, the duties of the
Council shall include—
(a) to approve academic courses and their contents;
(b) the prescribing of fees for the examination of candidates for enrolment;
(c) the prescribing of qualifications for entry in the Register;
(d) the recognition of foreign qualifications and training for the purposes of enrolment;
(e) the prescribing of guidelines for granting or refusal of certificates of practice under this Act;
(f) the levy of fees from members, examinees and other persons;
(g) the regulation and maintenance of the status and standard of professional qualifications of
members of the Institute;
________________
3Substituted for “six months”, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006.
4Substituted for “three”, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 22-7-2007.
5Substituted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006. Prior to its substitution,
section 15 read as under :
“15. Functions of the Council.—(1) The duty of carrying out the provisions of this Act shall be vested in the Council.
(2) In particular, and without prejudice to the generality of the foregoing power, the duties of the Council shall
include—
(a) the examination of candidates for enrolment and the prescribing of fees therefor;
(b) the registration and training of students;
(c) the prescribing of qualifications for entry in the Register;
(d) the recognition of foreign qualifications and training for purposes of enrolment;
(e) the granting or refusal of certificates of practice under this Act;
(f) the maintenance and publication of a Register of persons qualified to practise as cost accountants;
(g) the levy and collection of fees from members, examinees and other persons;
(h) the removal of names from the Register and restoration to the Register of names which have been removed;
(i) the regulation and maintenance of the status and standard of professional qualifications of members of the
Institute;
(j) the carrying out, by financial assistance to persons other than members of the Council or in any other manner,
of research in accountancy;
(k) the maintenance of libraries and publication of books and periodicals relating to cost accountancy and allied
subjects; and
(l) the exercise of disciplinary powers conferred by this Act.”
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(h) the carrying out, by granting financial assistance to persons other than members of the
Council or in any other manner, of research in accountancy;
(i) to enable functioning of the Director (Discipline), the Board of Discipline, the Disciplinary
Committee and the Appellate Authority constituted under the provisions of this Act;
(j) to enable functioning of the Quality Review Board;
(k) consideration of the recommendations of the Quality Review Board made under clause (a)
of section 29B, action taken thereon with a report to the Central Government within a period
of three months, and their inclusion in the annual report; and
(l) to ensure the functioning of the Institute in accordance with the provisions of this Act and in
performance of other statutory duties as may be entrusted to the Institute from time to time.]
1
[Functions of Institute.
15A. The functions of the Institute shall include—
(a) the examination of candidates for enrolment;
(b) the regulation of training of students;
(c) the maintenance and publication of a Register of persons qualified to practice as Cost
Accountants;
(d) collection of fees from members, examinees and other persons;
(e) subject to the orders of the appropriate authorities under this Act, the removal of names
from the Register and the restoration to the Register of names which have been removed;
(f) the maintenance of a library and publication of books and periodicals relating to
accountancy and allied subjects;
(g) the conduct of elections to the Council of the Institute; and
(h) the granting or refusal of certificates of practice as per guidelines issued by the Council.]
1a[Imparting education by Universities and other bodies.
15B. (1) Subject to the provisions of this Act, any University established by law or any body
affiliated to the Institute, may impart education on the subjects covered by the academic courses
of the Institute.
(2) The Universities or bodies referred to in sub-section (1) shall, while awarding degree, diploma
or certificate or bestowing any designation, ensure that the award or designation do not resemble
or is not identical to one awarded by the Institute.
(3) Nothing contained in this section shall enable a University or a body to adopt a name or
nomenclature which is in any way similar to that of the Institute.]
_______________
1Sections 15A inserted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006.
1aSection15B inserted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 8-8-2006.
13
1
[Officers and employees, salary, allowances, etc.
16. (1) For the efficient performance of its duties, the Council shall—
(a) appoint a Secretary of the Council to perform such duties as may be prescribed;
(b) appoint a Director (Discipline) to perform such functions as assigned to him under this Act
and the rules and regulations framed thereunder;
(c) designate an officer of the Council or the Institute to carry out the administrative functions of
the Institute as its chief executive.
(2) The Council may also —
(a) appoint such other officers and employees to the Council and the Institute as it considers
necessary;
(b) require and take from the Secretary or from any other officer or employee of the Council and
the Institute such security for the due performance of his duties, as the Council considers
necessary;
(c) prescribe the salaries, fees, allowances of the officers and employees of the Council and
the Institute and their terms and conditions of service;
(d) with the previous sanction of the Central Government, fix the allowances of the President,
Vice-President and other members of the Council and members of its Committees.
(3) The Secretary of the Council shall be entitled to participate in the meetings of the Council but
shall not be entitled to vote thereat.]
___________________
1Substituted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006. Prior to its substitution,
section 16 read as under :
“16. Staff remuneration and allowances.—(1) For the efficient performance of its duties, the Council, may—
(a) appoint a Secretary who may also, if so decided by the Council, act as Treasurer;
(b) appoint such other persons on its staff as it deems necessary;
(c) require and take from the Secretary or from any other employee of the Council such security for the due
performance of his duties as the Council considers necessary;
(d) fix the salaries, fees, allowances and other conditions of service of the Secretary and other employees of the
Council;
(e) with the previous sanction of the Central Government fix the allowances of the President, Vice-President and
other members of the Council and its Committees.
(2) The Secretary of the Council shall be entitled to participate in the meetings of the Council and the Committees
thereof but shall not be entitled to vote thereat.”
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Committees of the Council.
17. (1) The Council shall constitute from amongst its members the following Standing
Committees, namely :—
(i) an Executive Committee;
(ii) a 1
[Finance] Committee; and
(iii) an Examination Committee.
(2) The Council may also form a Training and Educational Facilities Committee and such other
Committees from amongst its members as it deems necessary for the purpose of carrying out the
provisions of this Act.
2
[(3) Each of the Standing Committees shall consist of the President and the Vice-President ex
officio, and minimum of three and maximum of five members to be elected by the Council from
amongst its members.]
(4) 3
[***]
(5) 3
[***]
(6) Notwithstanding anything contained in this section, any Committee formed under sub-section
(2), may, with the sanction of the Council, co-opt such other members of the Institute not
exceeding 4
[one-third] of the total membership of the Committee as the Committee thinks fit, and
any member so co-opted shall be entitled to exercise all the rights of a member of the Committee.
(7) The President shall be the Chairman of every Committee of which he is a member, and in his
absence, the Vice-President, if he is a member of the Committee, shall be the Chairman.
(8) The Standing Committees and other Committees formed under this section shall exercise
such functions and be subject to such conditions in the exercise thereof as may be prescribed.
Finances of the Council.
18. (1) There shall be established a fund under the management and control of the Council into
which shall be paid all moneys received by the Council and out of which shall be met all
expenses and liabilities properly incurred by the Council.
(2) The Council may invest any money for the time being standing to the credit of the fund in any
Government security or in any other security approved by the Central Government.
________________
1Substituted for “Disciplinary”, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006.
2Substituted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006. Prior to its substitution, subsection (3) read as under :
“(3) The Executive Committee shall consist of the President, and the Vice-President, ex officio, and three other
members of the Council elected by the Council.”
3Omitted, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006. Prior to their omission, subsections (4) and (5) read as under :
“(4) The disciplinary Committee shall consist of the President, ex officio, one member to be nominated by the Central
Government from amongst the members nominated to the Council by that Government and one member to be
elected by the Council.
(5) The Examination Committee shall consist of the President or the Vice-President, ex officio, as the Council may
decide, and two other members of the Council elected by the Council.”
4Substituted for “two-thirds”, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006.
15
1
[(3) The Council shall keep proper accounts of the fund distinguishing capital from revenue in the
manner prescribed.
4) The Council shall prepare in the manner prescribed and approve, prior to the start of the
financial year, an annual financial statement (the budget) indicating all its anticipated revenues as
well as all proposed expenditures for the forthcoming year.
(5) The annual accounts of the Council shall be prepared in such manner as may be prescribed
and be subject to audit by a chartered accountant in practice to be appointed annually by the
Council :
Provided that no member of the Council or a person who has been a member of the Council
during the last four years or a person who is in partnership with such member shall be eligible for
appointment as an auditor under this sub-section:
Provided further that, in the event it is brought to the notice of the Council that the accounts of the
Council do not represent a true and fair view of its finances, then, the Council may itself cause a
special audit to be conducted :
Provided also that if such information, that the accounts of the Council do not represent a true
and fair view of its finances, is sent to the Council by the Central Government, then, the Council
may, wherever appropriate cause a special audit or take such other action as it considers
necessary and shall furnish an action taken report on it to the Central Government.]
2
[(5A) As soon as may be practicable at the end of each year, the Council shall circulate the
audited accounts to its members at least fifteen days in advance and consider and approve these
accounts in a special meeting convened for the purpose.
(5B) The Council shall cause to be published in the Gazette of India not later than the 30th day of
September of the year next following, a copy of the audited accounts and the Report of the
Council for that year duly approved by the Council and copies of the said accounts and Report
shall be forwarded to the Central Government and to all the members of the Institute.]
(6) The Council may borrow from a scheduled bank as defined in the Reserve Bank of India Act,
1934 (2 of 1934), or from the Central Government—
(a) any money required for meeting its liabilities on capital account on the security of the fund or
on the security of any other assets for the time being belonging to it; or
(b) for the purpose of meeting current liabilities pending the receipt of income by way of
temporary loan or overdraft.
___________________
1Substituted, by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006. Prior to their substitution,
sub-sections (3), (4) and (5) read as under :
“(3) The Council shall keep proper accounts of the funds distinguishing capital from revenue.
(4) The annual accounts of the Council shall be subject to audit by a chartered accountant in practice within the
meaning of the Chartered Accountants Act, 1949 (38 of 1949), to be appointed annually by the Council :
Provided that no member of the Council who is a chartered accountant or a person who is in partnership with such
member shall be eligible for appointment as an auditor under this sub-section.
(5) As soon as may be practicable at the end of each year, but not later than the 30th day of September of the year
next following, the Council shall cause to be published in the Gazette of India a copy of the audited accounts and the
Report of the Council for that year and copies of the said accounts and Report shall be forwarded to the Central
Government and to all the members of the Institute.”
2Sub-sections (5A) and (5B) inserted by the Cost and Works Accountants (Amendment) Act, 2006, w.e.f. 17-11-2006.