Updated: Tuesday March 29, 2016/AthThulatha
Jamada El Thaniah 20, 1437/Mangalavara
Chaitra 09, 1938, at 05:37:48 PM
The Cost and 1[Management]
Accountants Act, 1966
2ACT NO. XIV OF 1966
[19
An
Act to make provision for the regulation of the profession of cost and
[management] accountants.
WHEREAS it is expedient to
make provision for the regulation of the profession of cost and 1[management] accountants and for that
purpose to establish an Institute of 1[management] accountants;
AND WHEREAS the national
interest of
It is hereby enacted as
follows:---
CHAPTER I
PRELIMINARY
1.
Short title, extent and commencement.__(1) This Act may be called the 3[Cost and Management Accountants Act,
1966].
(2) It extends to the whole
of
(3) It shall come into
force on such date4 as the 5[Federal Government] may, by notification
in the official Gazette, appoint in this behalf.
2.Definitions.__(1) In this Act, unless there is anything
repugnant in the subject or context,---
(a) “associate” means an associate member of the Institute;
6[(aa) ‘cost and management accountant’ means a person who is an
associate or a fellow member of the Institute;]
(b) “Council” means the Council of the Institute:
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976), s. 2, for “industrial”.
2For Statement of Objects and Reasons,
see Gaz. of P. 1966, Ext., p.331 (R).
3Subs. ibid., s. 3, for “Cost and
Industrial Accountants Act, 1966”.
4i.e. the 20th day of
August, 1966, see, Gaz., of P. 1966, Ext., dated the 18th August,
1966, p.557.
5Subs. by F.A.O., 1975, Art. 2 and Table
for “Central Government”.
6New cl. (aa) ins. by Act 70 of 1976,
s.4.
(c) “dissolved company” means the company registered under the
Companies Act, 1913, as the Pakistan Institute of Industrial Accountants;
(d) “fellow” means a fellow member of the Institute;
1* * * * * * * *
(f) “Institute” means the2[
(g) “prescribed” means prescribed by
regulations made under this Act;
(h) “President” means the President of the Council;
(i) “Register” means the Register of members
of the Institute maintained under this Act;
(j) “Vice-President” means the Vice-President of the Council;
(k) “year” means the financial year.
`(2) Save as otherwise
provided in this Act, a member of the Institute shall be deemed “to be in practice”
when, individually or in partnership with one or more members of the Institute
in practice, he, in consideration of remuneration received or to be received,
(a) engages himself in the practice of cost and 3[management] accounting; or
(b) offers to perform service involving the
costing or pricing of goods or services, or the preparation, verification or
certification of cost accounting and related statements, or holds himself out
to the public as a cost and 3[management] accountant; or
(c) professional service or assistance in or about matter of
principles or detail relating to the cost and3[management] accounting
procedures, or the recording, presentation or the certification of costing
facts or data; or
(d) renders such other services as, in the opinion of the
Council, are or may be rendered by 4[a cost and management] accountant;
and the expression “to be in practice”, with its grammatical
variations and cognate expressions, shall be construed accordingly.
Explanation.__ A member of the Institute who is a
whole-time salaried employee of any person shall not be deemed "to be in
practise" within the meaning of this sub-section.
1Cl (e) omitted by the Cost and
Industrial Accountants (Amdt.) Act, 1976 (70 of 1976), s.4.
2Subs. ibid., for “
3Subs.ibid. for “Industrial”.
4Subs. ibid., for "an
Industrial".
CHAPTER II
1[INSTITUTE OF COST AND MANAGEMENT
ACCOUNTANTS OF
3.
Incorporation of the Institute.__(1)All persons whose names are entered in
the Register at the commencement of this Act and all persons who may hereafter
have their names entered in the Register under the provisions of this Act, so
long as they continue to have their names borne on the said Register are hereby
constituted a body corporate by the name of the 2[Institute of Cost and Management
Accountants of Pakistan] and all such persons shall be known as members of the
Institute.
(2) The Institute shall have
perpetual succession and a common seal, and shall have power to acquire, hold
and dispose of property, both movable and immovable, and shall by its name sue
or be sued.
4.
Entry of names in the Register.__(1)The following persons shall be entitled
to have their names entered in the Register, namely:__
(a) any person who was, immediately before the commencement of
this Act, a fellow or associate of the dissolved company;
(b) any person who has passed such examination and completed
such training as may be prescribed for membership of the Institute;
(c) any person who has passed such other examination and
completed such other training outside Pakistan as is recognised by the 3[Federal Government], or by the Council
with the approval of the 3[Federal Government], as being equivalent
to the examination and training prescribed for membership of the Institute and,
in case he is not permanently residing in Pakistan, fulfils such other
conditions as the3[Federal Government],
or the Council with the approval of the 3[Federal Government], as the case may be,
may deem fit to impose;
(d) any person domiciled in
(i) studying for any foreign examination and
also undergoing training and passes such examination and completes such
training within three years of such commencement, or
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act 1976 (70 of 1976) s. 5, for heading “
2Subs. ibid. s.6, for “
3Subs. by F.A.O, 1975, Art. 2 and Table
for “Central Government”.
(ii) undergoing training, having passed any
such foreign examination, and completes such training within the said period,
if such foreign examination and training are recognised by the 1[Federal Government], or by the Council
with the approval of 1[Federal Government], as being equivalent
to the examination and training prescribed for membership of the Institute.
(2) The Council shall, as
early as possible, take such steps as may be necessary for having the names of
all such persons as are mentioned in clause (a) of sub-section (1) entered in
the Register without any application being made in that behalf or the payment
of any fee and the name of every such person so entered shall be deemed to have
been entered at the commencement of this Act for the purpose of sub-section (1)
of section 3.
(3) Every person belonging
to any of the classes mentioned in clauses (b), (c) and (d) of sub- section (1)
may have his name entered in the Register on an application made to and granted
by the Council in the prescribed manner and on payment of the prescribed fee.
5.
Associates and fellows.__(1) Save as otherwise provided in the Act,
the members of the Institute shall be divided into two classes designated as
fellows and associates.
(2) A person, other than a
person mentioned in sub-section (3), shall, on his name being entered in the
Register, be an associate and, so long as his name remains so entered, shall be
entitled to use the letters 2[A.C.M.A.] after his name to indicate that
he is an associate of the Institute.
(3) The name of a person
who was, immediately before the commencement of this Act, a fellow of the
dissolved company shall be entered in the Register as a fellow of the Institute
and such person, so long as his name remains so entered, shall be entitled to
use the letters 3[F.C.M.A.] after his name to indicate that
he is a fellow of the Institute.
(4) A person who has been
an associate for a continuous period of not less than five years and who
possesses such qualifications as the Council may prescribe, may apply to the
Council for admission as fellow; and if the Council grants his application his
name shall be entered in the Register as a fellow.
1Subs. by F.A.O., 1975, Art. 2 and Table,
for “Central Government”.
2 Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976), s. 7, for “A.P.I.A.”
3 Subs. ibid., s. 7, for “F.P.I.A.”
Explanation.__ In computing the continuous period during
which a person has been an associate of the Institute there shall be included
any continuous period during which he has been an associate of the dissolved
company immediately before he became an associate of the Institute.
(5) The decision of the
Council on an application under sub-session (4) shall be final.
6.
Certificate of practice.__(1)No member of the Institute shall be
entitled to practice within
(2)The Council may grant a
certificate of practice to a member of the Institute who applies in the
prescribed form and pays the prescribed annual fee for such certificate.
(3) Every member holding a
certificate of practice shall pay the annual fee for every year which shall be
due on the first day of July of that year.
(4) A certificate or
practice shall be liable to be cancelled for default in payment of the annual
fee for any year.
7.
Members to be known as 1[Cost
and Management Accountants].__(1)Every member of the Institute in
practice shall, and every other member may, use the designation of 1[Cost and Management Accountant].
(2) No member of the
Institute in practice using the designation of 1[Cost and Management Accountant] shall
use, whether in addition thereto or in substitution therefore, any other
costing designation:
Provided that nothing in
this sub-section shall be deemed to prohibit any such member from adding any
other description or designatory letters to his name, if entitled thereto, to
indicate membership of such other institute of accountancy whether in Pakistan
or elsewhere, as may be recognised by the Council in this behalf, or any other
qualification that he may possess, or to prohibit a firm, all the partners of
which are members of the Institute in practice, from being known by its firm
name as 1[Cost and Management Accountants].
8.
Disabilities. Notwithstanding
anything contained in section 4 a person shall not be entitled to have his name
entered in or borne on the Register if he __
(i) has not attained the age of twenty-one years at the time of
his application for the entry of his name in the Register; or
(ii) is of unsound mind and stands so adjudged
by a competent court; or
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976) s. 8, for “Industrial Accountants”.
(iii) is an undischarged insolvent; or
(iv) having been discharged of insolvency, has
not obtained from the court a certificate stating that his insolvency was
caused by misfortune without any misconduct on his part; or
(v) has been convicted by a competent court, whether within or
without Pakistan, of an offence involving moral turpitude and punishable with 1* * imprisonment, or of an offence, not of
a technical nature, committed by him in his professional capacity unless in
respect of the offence committed he has either been granted a pardon, or, on an
application made by him in this behalf, the 2[Federal Government] has, by an order in
writing, removed the disability; or
(vi) has been removed from the membership of
the Institute on being found on inquiry to have been guilty of professional or
other misconduct:
Provided that a person who
has been removed from membership for a specified period shall not be entitled
to have his name entered in the Register until the expiry of such period.
CHAPTER III
COUNCIL OF INSTITUTE
9.
Constitution of the Council.__(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 under this Act.
(2) The First Council shall
be composed of such of the members of the Council of the dissolved company as
are entitled to have their names entered in the Register as fellows; and every
other Council shall be composed of the following members, namely:-
(a) the first President of the dissolved company;
(b) not more than eight persons elected by members of the
Institute from amongst the fellows of the Institute; and
(c) not more than four persons nominated by
the 2[Federal Government].
1The words “transportation or “ omitted
by the Cost and Industrial Accountants (Amdt.) Act, 1976, (70 of 1976), s, 9.
2Subs. by F.A.O., 1975, Art, 2 and Table,
for “Central Government”.
10.
Election of the Council.__(1)Election of the members of the Council
mentioned in clause (b) of sub-section (2) of section 9, shall be held at the
annual general meeting of the Institute in such manner as may be prescribed.
(2) Where any dispute
arises regarding any such election, it shall be referred by the Council to a
Tribunal appointed by the 1[Federal 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 supported by at least
five members of the Institute who had attended the election, 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 Institute or by the aggrieved party as may be
ordered by the Tribunal.
(4) If the members of the
Institute fail to elect any of the members of the Council mentioned in clause
(b) of sub-section (2) of section 9, the 1[Federal Government] may nominate any
person duly qualified for the purpose to fill the vacancy, and the person so
nominated shall be deemed to have been duly elected under that clause.
11.
President, Vice-President, Secretary and Treasurer.__(1)The Council shall, at its first meeting
elect from amongst its members the following honorary office bearers, namely:__
(a) a President;
(b) a Vice-President;
(c) a Secretary; and
(d) a Treasurer.
(2) If the Council fails to
elect any of the honorary office bearers within one month of the election of
its members mentioned in clause (b) of sub-section (2) of section 9, the 1[Federal Government] may appoint, from
amongst the members of the Council, any person duly qualified for the purpose
to fill the vacancy, and the person so appointed shall be deemed to have been
duly elected by the Council on the date of such appointment
(3) The President shall be
the chief executive authority of the Council.
1Subs. by F.A.O., 1975, Art. 2 and Table,
for “Central Government”.
(4) Save as provided in
sub-section (5), the President and other office bearers shall, subject to their
continuance as members of the Council, hold their respective offices from the
date on which they are elected or deemed to have been elected until the expiry
of the duration of the Council.
(5) Notwithstanding the
expiry of their term of office under sub-section (4), the President and other
office bearers shall continue to perform their functions until their successors
are elected by the new Council.
(6) Where the President or
any other office bearer resigns from his office or ceases to be a member of the
Council, the Council shall elect from amongst its members a new President or
other office bearer, as the case may be.
(7) If the Council fails to
elect a new President or office bearer as provided in sub- section (6), the 1[Federal Government] may appoint, from
amongst the members of the Council, any person to fill the vacancy, and the
person so appointed shall be deemed to have been duly elected by the Council on
the date of such appointment.
12.
Resignation of membership and casual vacancies.__(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, or if his name is, for any cause, remove from the Register under
the provisions of section 20.
(3) A casual vacancy in the
Council may be filled by nomination by the 1[Federal Government], and the person
nominated to fill the vacancy shall hold office until the expiry of the
duration 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.
13.
Duration and dissolution of Council.__(1)The duration of a Council shall be
three years from the date of its first meeting on the expiry of which a new
Council shall be constituted in accordance with the provisions of this Act.
(2) A Council shall,
notwithstanding the expiry of its duration under sub-section (1) continue to
perform its function until a new Council is constituted whereupon the Council
so functioning shall stand dissolved.
1Subs. by F.A.O., 1975, Art. 2 and Table,
for “Central Government”.
14.
Functions of the Council.__(1)The Council shall exercise such powers
and perform such functions as may be necessary to carry out the purpose of this
Act.
(2) In particular, and
without prejudice to the generality of the foregoing provision, the powers and
functions of the Council shall include __
(a) the examination of candidates for membership of the
Institute and the prescribing of fees for such examination;
(b) the registration and training of students;
(c) the prescribing of qualifications for entry of persons as
members of the Institute;
(d) the recognition of foreign qualifications and training or
experience for purposes of membership of the Institute;
(e) the refusal, granting and cancellation of certificates of
practice;
(f) the maintenance of the Register and publication of the list
of members of the Institute and also the names of the members who hold
certificates of practice;
(g) the levy and collection of fees from members, students,
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 the 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 cost and 1[management] accounting;
(k) the maintenance of libraries and publication of books and
periodicals relating to cost and 1[management] accounting and allied
subjects;
(l) the exercise of such disciplinary powers over the members
and servants of the Institute as may be prescribed; and
(m) the exercise of such other powers and the performance of
such other functions as are required to be, or may be, exercised or performed
by the Council under this Act or regulations made thereunder.
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976) s.10 for “industrial”.
15.
Staff remuneration and allowances.__(1)For the efficient performance of its
functions, the Council may __
(a) appoint such officers and servants as it may consider
necessary;
(b) require and take from employees of the Institute such
security for the due performance of their duties as it may consider necessary;
(c) fix the salaries, fees, allowances and other conditions of
service of the employees of the Institute; and
(d) with the previous sanction of the 1[Federal Government,] fix the allowances
of the President, the Vice-President, the Secretary, the Treasurer and other
members of the Council and its Committees.
16.
Committees of the Council.__(1)The Council shall constitute the
following Standing Committees, namely:-
(a) an Executive Committee;
(b) an Education Committee;
(c) an Examination Committee; and
(d) a Disciplinary Committee.
(2) The Council may also constitute
such other Committees as it deems necessary for the purpose of carrying out the
provisions of this Act.
(3) The executive Committee
shall consist of the President, the Vice-President and three other members
nominated by the Council from amongst its members.
(4) The Education Committee
shall consist of the President and such other members nominated by the Council
from amongst its members as may be prescribed.
(5) The Examination
Committee shall consist of the President, or the Vice-President, as the Council
may decide, and such other members, nominated by the Council from amongst its
members as may be prescribed.
1Subs. by F.A.O., 1975, Art. 2 and Table
for “Central Government”.
(6) The Disciplinary
Committee shall consist of the President and two other members of the Council,
one of whom shall be nominated by the 1[Federal Government] and the other by the
Council.
(7) Every other Committee
shall consist of such members as the Council may decide.
(8) The President shall be
the Chairman of every Committee of which he is a membe,r and in his absence,
the Vice-President, if he is a member of the Committee, shall be the Chairman.
(9) The Standing Committees
shall perform such functions as may be prescribed and the other Committees,
shall perform such functions as the Council may direct.
17.
Branch Councils.__(1)For the purpose of advising and
assisting it in the discharge of its functions, the Council may constitute one
or more Branch Councils as and when it considers necessary.
(2) A Branch Council shall be constituted in such manner and
perform such functions as may be prescribed.
(3) The Council may, at any time, dissolve any Branch Council
constituted under sub-section(1).
18.
Finances of the Council.__(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 Council.
(3) The Council shall cause
maintenance of proper accounts of the funds distinguishing capital from
revenue.
(4) The annual accounts of
the Institute shall be subject to audit by chartered accountant within the
meaning of the Chartered Accountants Ordinance, 1961 (X of 1961):
Provided that no member of
the Council or person who is in partnership with such member shall be eligible
for appointment as an auditor under this sub-section.
1Subs. by F.A.O., 1975, Art. 2 and Table
for “Central Government”.
(5) As soon as may be
practicable after the close of each year, but not later than the thirtieth day
of November next following, the Council shall cause to be published 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 1[Federal Government] and to all the
members of the Institute.
(6) The Council may borrow
from a scheduled bank as defined in the State Bank of Pakistan Act, 1956,(XXXIII of 1956)
or from the 1[Federal Government]:-
(a) any money required for meeting its liability on capital
account on the security of the funds or on the security of any other assets for
the time being belonging to it; or
(b) for the purpose of meeting current liabilities by way of
temporary loans or overdraft pending the receipt of income.
________
CHAPTER IV
REGISTER OF MEMBERS
19.
Register.__(1) The Council shall maintain in the
prescribed manner a Register of the members of the Institute.
(2) The Register shall
include the following particulars about every member of the Institute, namely:-
(a) his full name, date of birth, domicile, residential and
professional addresses;
(b) the date on which his name is entered in the Register;
(c) his qualifications;
(d) whether he holds a certificate of practice; and
(e) such other particulars as may be prescribed.
(3) The Council shall cause
to be published in such manner as may be prescribed a list of members of the
Institute as on the first day of July of each year, and a copy of the list
shall be sent to every member of the Institute.
1Subs. by F.A.O., 1975, Act. 2 and Table
for “Central Government”.
(4) Every member of the
Institute shall, on his name being entered in the Register, pay such annual
membership fee as may be prescribed and different fees may be prescribed for
associates and for fellows.
20.
Removal of name from the Register.__(1) The Council may remove from the
Register the name of any member of the Institute:-
(a) who is dead; or
(b) from whom a request has been received to that effect; or
(c) who has not paid any prescribed fee payable by him; or
(d) who is found to have been subject, at the time when his
name was entered in the Register, or who, at any time thereafter, has become
subject, to any of the disabilities mentioned in section 8, or who, for any
other reason, has ceased to be entitled to have his name borne on the Register.
(2) The Council shall
remove from the Register the name of any member who is not entitled to remain a
member under this Act.
1[(3) Before removing from the Register the
name of any member under clause (c) or clause (d) of sub-section (1) or
sub-section (2), the Council shall afford him an opportunity of being heard.]
CHAPTER V
PENALTIES
21.
Penalty for falsely claiming to be a member, etc.A person shall, without prejudice to his
liability to any disciplinary measure prescribed under section 34, be
punishable, on first conviction, with fine which may extend to one thousand
rupees, and, on any subsequent conviction, with imprisonment which may extend
to six months, or with fine which may extend to five thousand rupees, or with
both if he__
(1) not being a member of the Institute, represents that he is a
member of the Institute, or uses the designation of Cost and 2[Management Accountant or the letters
A.C.M.A., F.C.M.A.]; or
1Added by the Cost and Management
Accountants (Amdt.) Ordinance, 1984, (2 of 1984), s. 2.
2Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976), s. 11, for “Industrial Accountant
or letters A.P.I.A., F.P.I.A”.
(2) being a member of the
Institute but not having a certificate of practice, represents that he is in
practice or practices as 1[a cost and management accountant], cost
accountant or works accountant or in some similar profession in the field of
cost and 2[management accounting].
22.
Penalty for using the name of the Council etc.__(1) Save as otherwise provided in this
Act, no person shall__
(a) use any name or common seal which is identical with the
name or the common seal of the Institute or so nearly resembles it as to
deceive or as be likely to deceive the public; or
(b) grant or confer any degree, diploma, certificate or
designation which indicates or purports to indicate the possession or
attainment of any qualification or competence in cost and 3[management] accounting similar to that of
a member of the Institute.
(2) Any person contravening
the provisions of sub-section (1) shall, without prejudice to any other
proceedings which may be taken against him, be punishable, on first conviction,
with fine which may extend to one thousand rupees, and, on any subsequent
conviction, with imprisonment which may extend to six months or with fine which
may extend to five thousand rupees or with both.
(3) Nothing contained in
this section shall apply to any University established by law or to any
institution affiliated thereto.
(4) If the 4[Federal Government] is satisfied that any
diploma, certificate or designation granted or conferred by any person other
than the Institute, which purports to be a qualification in cost or 3[management] accounting but which, in the
opinion of the 4[Federal Government] falls short of the
standard of qualifications prescribed for cost or3[management]
accountants and does not in fact indicate or purport to indicate the possession
or attainment of any qualifications or competence in cost or 3[management] accounting similar to that of
a member of the Institute, it may, by notification in official Gazette and
subject to such conditions as it may think fit to impose, declare that this
section shall not apply to such diploma, certificate or designation.
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976), s.11, for “an industrial
accountant”.
2Subs. ibid, for “industrial accounting”.
3Subs. ibid., s. 12, for “industrial”.
4Subs. by F.A.O., 1975, Art. 2 and Table,
for “Central Government”.
23.
Companies not to engage in 1[cost and
management accountancy] in
(2) If any company contravenes the provisions of sub-section (1)
then, without prejudice to any other proceedings which may be taken against the
company, every director, manager, secretary and other officer of such company,
who is knowingly a party to such contravention, shall be punishable with fine
which may extend, on first conviction, to one thousand rupees and, on any
subsequent conviction, to five thousand rupees.
24.
Unqualified persons not to sign documents.__(1) No person, other than a member of the
Institute, shall sign any document on behalf of 3[a cost and management accountant] or a
firm of 4[cost and management accountants] in his
or its professional capacity.
(2) Any person contravening
the provisions of sub-section (1) shall be punishable with fine which may
extend, on first conviction, to one thousand rupees and, on any subsequent
conviction to five thousand rupees.
25.
Offences by companies.__(1)If the person committing an offence
under this Act is a company, the company as well as every person incharge of,
and responsible to, the company for the conduct of its business at the time of
the commission of the offence shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished accordingly:
Provided that nothing
contained in this sub-section shall render any such person liable to any
punishment if he proves that the offence was committed without his knowledge or
that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding
anything contained in sub-section (1), where an offence under this Act has been
committed by a company and it is proved that the offence has been committed
with the consent or connivance of, or that the commission of the offence is
attributable to any neglect on the part of, any director, manager, secretary or
other officer of the company, such director, manager, secretary or other
officer shall also be deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly.
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976), s. 13, for “industrial
accountancy”.
2Subs. ibid., for “industrial”.
3Subs. ibid., s. 14, for “an industrial
accountant”.
4Subs. ibid., for “industrial
accountants”.
Explanation – For the purpose of this section__
(a) ‘company’ with respect to an offence under section 21 or
section 24, means any body corporate and includes a firm or other association
of individuals and, with respect to an offence under section 23, a body
corporate; and
(b) ‘director’ in relation to a firm means a partner in the
firm.
26.
Sanction to prosecute.No person shall be prosecuted under this
Act except on a complaint made by or under the order of the Council or of the 1[Federal Government].
CHAPTER VI
DISSOLUTION OF THE EXISTING
27.
Dissolution of the Institute registered under Act VII of 1913.On the commencement of this Act,__
(1) the company registered
under the Companies Act, 1913 as, the Pakistan Institute of Industrial
Accountants shall stand dissolved and thereafter no person shall make, asset or
take any claims, demands or proceedings against the dissolved company or
against any officer thereof in his capacity as such officer, except in so far
as may be necessary, for enforcing the provisions of this Act;
(2) the right of every
member to or in respect of the dissolved company shall be extinguished, and
thereafter no member of that company shall make, assert or take any claims or
demands or proceedings in respect of that company except as provided in this
Act.
28.
Assets and liabilities of the dissolved company.__(1) On the commencement of this Act, there
shall be transferred to and vested in the Institute all the assets and
liabilities of the dissolved company.
(2) The assets of the
dissolved company shall be deemed to include all rights and powers, and all
property, whether movable, or immovable, of the company, including, in
particular, cash balance, reserve funds, investment deposits and all other
interests and rights in or arising out of such property as may be in the
possession of the dissolved company; and all books of accounts or documents, of
the dissolved company; and the liabilities of the dissolved company shall be
deemed to include all debts, liabilities and obligations of whatever kind of
that company existing immediately before the commencement of this Act.
1Subs. by F.A.O.., 1975, Art. 2 and
Table, for “Central Government”.
(3) All contracts, debts,
bonds, agreements and other instruments of whatever nature to which the
dissolved company is a party, subsisting or having effect immediately before
the commencement of this Act, shall have full force and effect against or in
favour of the Institute, as the case may be, and may be enforced as fully and
effectively as if, instead of the dissolved company, the Institute had been a party
thereto.
(4) If, on the commencement
if this Act, any suit, appeal or other legal proceedings of whatsoever nature
by or against the dissolved company is pending the same shall not abate, be
discontinued or be in any way prejudicially affected, by reason of the transfer
to the Institute of the assets and liabilities of the dissolved company or of
anything contained in this Act, but the suit, appeal or other proceedings may
be continued, prosecuted and enforced by or against the Institute, in the same manner
and to the same extent as it would have been continued, prosecuted and enforced
by or against the dissolved company if this Act had not been passed.
29.
Employees of the dissolved Company.__(1)Every person employed in dissolved
company immediately before the commencement of this Act shall, as from such
commencement become an employee of the Institute and shall hold his office or
service therein upon the same terms and conditions, and with the same rights
and privilege as to pension and gratuity, as would have applied to him in his
office or service under the dissolved company if this Act had not been passed,
and shall continue to do so until his employment in the Institute is terminated
or his remuneration or other terms and conditions of employment are duly
altered by the Institute.
(2) Notwithstanding
anything contained in any law for time being in force, or in any contract, the
transfer of the services of any employee of the dissolved company to the
Institute shall not entitle any such employee to any compensation under such
law or contract and no such claim shall be entertained by any court, tribunal
or authority.
__________
CHAPTER VII
MISCELLANEOUS
30.
Alteration in the Register and cancellation of certificate.__(1)Where an order is made under this Act
reprimanding a member of the Institute, a record of the punishment shall be
entered against his name in the Register.
(2) Where the name of any,
member is removed from the Register, the certificate of membership and the
certificate of practice, if any granted to him shall be recalled and cancelled.
31.
Protection of action taken in good faith.No suit, prosecution or other legal
proceedings shall lie against the1[Federal Government] or
the Council in respect of anything which is in good faith done or intended to
be done in pursuance of this Act or of any regulation or order made thereunder.
1Subs. by F.A.O., 1975, Art.2 and Table,
for “Central Government”.
32.
Maintenance of branch offices.__(1)Where 1[cost and management accountant] or a firm
of 2[cost and management accountants] has more
than one offices in
Provided that the Council
may in suitable cases exempt any 3[cost and management accountant] or a firm
of2[cost and management
accountants] from the operation of this sub-section.
(2) Every 3[cost and management accountant] in
practice or firm of such accountants maintaining more than one offices shall
send to the Council a list of offices together with the names of the persons in
charge thereof and shall keep the Council informed of any change in relation
thereto.
33.
Reciprocity.__(1)Where any country specified by the 4[Federal Government] in this behalf, by
notification in the official Gazette, prevents persons of Pakistan domicile
from becoming members of any institute similar to the Institute, or from
practicing the profession of cost and 5[management] Accounting or subjects them
to unfair discrimination in that country, no citizen of that country shall be
entitled to be a member of the Institute or practice the profession of cost and 5[management] accounting in Pakistan.
(2) Subject to the provisions
of sub-section (1), the Council may prescribe the conditions, if any, subject
to which foreign qualifications relating to cost and 5[management] accounting shall be
recognised for the purpose of entry in the Register.
34.
Power to make regulations.__(1)The council may, by notification in the
official Gazette, make regulations for carrying out the purposes of this Act.
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act. 1976 (70 of 1976) s.15 for “an industrial accountant”.
2Subs. ibid., for "industrial
accountants”.
3Subs. ibid. for “Industrial account”.
4Subs. by F.A.O., 1975, Art. 2 and Table,
for "Central Government".
5Subs. ibid. s. 16 for “Industrial”.
(2) In particular, and
without prejudice to the generality of the foregoing powers, such regulations
may provide for all or any of the following matters, namely: -
(a) the standard and conduct of examinations
under this Act;
(b) the qualifications for entry of the name
of any person in the Register as a member of the Institute;
(c) the qualification for the purpose of
sub-section (4) of section 5;
(d) the conditions under which any examination
or training may be treated as equivalent to the examination or training
prescribed for membership of the Institute;
(e) the conditions under which any foreign
qualification may be recognised;
(f) the manner in which and the conditions
subject to which applications for entry in the Register may be made;
(g) the fees payable for membership of the
Institute and the annual fees payable for certificates of practice ;
(h) the manner in which election to the
Council and the Branch Councils may be held;
(i) the particulars to be entered in the
Register;
(j) the functions of Branch Councils;
(k) the regulations and maintenance of the status and standard
of professional qualifications of members of the Institute;
(l) the carrying out of research in cost and 1[management] accounting;
(m) the maintenance of libraries and
publication of books and periodicals relating to cost and 1[management] accounting and allied
subjects;
(n) the management of the property of the
Institute and the maintenance and audit of its accounts;
(o) the summoning and holding of meetings of
the Council and committees thereof, the times and places of such meetings ,the
procedure to be followed thereat and the number of members necessary to form a
quorum;
(p) recording and certifying minutes of meetings of the Council
and the annual general meetings and extraordinary meetings;
1Subs. by the Cost and Industrial
Accountants (Amdt.) Act, 1976 (70 of 1976), s. 17, for “industrial”.
(q) appointment
and removal of auditors of the Institute;
(r) the
manner in which the annual list of members of the Institute shall be published;
(s) the
power, duties and functions of the President and Vice-President;
(t) the
functions of the Standing Committees and other Committees and the conditions
subject to which such functions shall be discharged;
(u) the
terms of office, and the powers, duties and functions of the Secretary,
Treasurer, and the other employees of the Council;
(v) rules
of professional and other conduct and the exercise of disciplinary powers in
relation thereto;
(w) the
terms and conditions of service of the employees of the Institute including
persons who have become its employees under section 29;
(x) the
registration of students and the fees to be charged for such registration; and
(y) any
other matter which is required to be or may be prescribed under this Act.
(3) All Regulations made by
the Council under this Act shall be subject to the condition of previous
publication and to the approval of the [1][Federal
Government].
(4) The Council shall, as
soon as practicable, send a copy of any Regulation made by it to every member
of the Institute.
(5) Notwithstanding
anything contained in this section, the 1[Federal Government] may make the first 2Regulations of the Council and such
Regulations shall be deemed to have been made by the Council and shall have
effect accordingly.
35.
Power to give directions for making regulations, etc.__(1)Where the 1[Federal Government] considers it
expedient so to do, it may, by order in writing, direct the Council to make any
regulation, or to amend or rescind any regulation already made, within such
period as it may specify in this behalf.
(2 ) If the Council fails
or neglects to comply with such direction within the specified period, the 1[Federal Government] may make or amend,
with or without modifications, or rescind, any regulation directed to be made,
amended or rescinded; and any regulation so made, amended or rescinded by the 1[Federal Government] shall be deemed to
have been made, amended or rescinded by the Council and shall have effect
accordingly.
1Subs. by F.A.O., 1975, Art. 2 and Table,
for “Central Government”.
2For such Regulations, see Gaz. of P.,
1966, Ext. p. 559.
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