Date:11/03/2005 URL: http://www.thehindubusinessline.com/2005/03/11/stories/2005031101300700.htm

Back ICSI council to deliberate on changes to Company Secretaries Act

Richa Mishra

New Delhi , March 10

THE Council of the Institute of Company Secretaries of India (ICSI) is to meet next week to deliberate on the proposals of the Bill to amend the Company Secretaries Act.

The institute, which had expressed apprehensions that the period of self-regulation may give way to a bureaucratic regime if the Bill to amend the Company Secretaries Act becomes a law, will discuss the proposals keeping in mind the recommendations of the Standing Committee on Finance.

In its report the Parliamentary panel has commented on some of the provisions of the Bill. Regarding the power of dissolution of the council being vested with the Central Government, the professionals had said that such a clause may be withdrawn as it was not in line with the current Government policy of deregulation.

However, if it is still felt that such sweeping power to dissolve a democratically elected council should be vested with the Government, there should be a provision to file an appeal against the decision, the professionals had stated.

The Standing Committee in its report had opined that such blanket powers would rather impinge on the autonomy of the institute. It, therefore, recommended that the power of the Central Government to issue directions for dissolution of the council should be in consonance with the objectives of the Bill and restricted to the following - to uphold and maintain the highest level of secretaries audit, maintain highest standard of quality audit, and to take appropriate action against the defaulters in the shortest possible time.

The council will also discuss the provisions regarding vesting the Government with certain rule-making powers for governing the profession, which the company secretaries' fraternity felt should be left with the council as it is today. The existing process involves exhaustive consultations with the Government before the rules are framed, they said.

As far as prescribing the fee for the members of ICSI is concerned, they said that there should be no cap on the fee and the council should be authorised to decide the different kinds of fees payable by the members from time to time.

Besides discussing some of the other contentious proposals in the Bill, the council will also discuss the issue of allowing the professionals to advertise. Based on the council's decision, the institute will decide whether or not to take up the matter with the Ministry of Company Affairs, sources said.