Comm Far HL INstTss — THE COST ACCOUNTANTS ACT, 1959

Swz1 0j Comm Far HL INstTss By Speed Post No_ 12/23/2010-PI GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS 5th Floor, A Wing, Shastri Bhavan New Delhi 5 110001 Dated, the 13th December, 2010 To The Secretary, ICAI, New Delhi: The Secretary, ICSI, New Delhi The Secretary, ICWAI, KOLKATA Subject: Members of the professional institutes arrested by law enforcement agencies for criminal offences Directions of Central Government ~ issue of. In recent times, there have been several instances where members of the professional Institutes have been arrested by law enforcement agencies in connection with criminal offences. It has been noticed that disciplinary action is generally not initiated against such members SUo motu by the professional institutes, unless and until pointed out by the Ministry. 2. Members of the three professional Institutes discharge important economic functions and render services to the public The_confidence of_the_public_in the integrity of the members_is_vital Part IV of Schedule I of the Acts governing the three professional Institutes specifically provides, that a member shall be deemed to be guilty of mis-conduct if he brings disrepute to the profession or the institute as a result of his action whether or not related to his ISSUEd C4li?L Jcl_ alk Sir, rofessional work" . Under this provision, it is not necessary that there should be professional mis-conduct; if by his action, a member brings disrepute to the Institute, it is a sufficient ground for proceeding: 3. Keeping in view the need for public confidence in the integrity of the members of the professional Institutes, the Central Government hereby issues the following directions under Section 35 of the Cost and Works Accountants Act, 1959_ Section 35 of the Company Secretaries Act; 1980 and Se