INSTITUTE OF CHARTERED ACCOUNTANTS ACT

Arrangement of Sections

1. Short title.

ESTABLISHMENT OF INSTITUTE AND MEMBERSHIP

2. Establishment of Institute of Accountants of Sri Lanka.

3. Incorporation of Institute.

3A. Objects of the institute.

4. Eligibility for membership of Institute.

5. Fee for membership of Institute.

6. Classification of members as Fellows and Associates.

THE COUNCIL

7. Constitution of Council.

7A. Special provision relating to President and Vice- President.

8. Term of office of members of the council.

9. General powers and duties of Council.

10. Officers of the Council.

11. Financial provisions.

12. Power to make regulations.

13. Repealed.

14. Repealed.

QUALIFICATIONS FOR ENROLLMENT, AND PROVISIONS AS TO DISENROLLMENT, ETC.

15. General disqualifications.

16. Disenrollment for professional misconduct.

17. Inquiries by disciplinary committees.

18. Suspension in lieu of disenrollment.

19. Appeal to the Court of Appeal from decisions of the Council under section 16 or section 18.

20. Meaning of "professional misconduct”.

RESTRICTIONS ON PRACTICE AS ACCOUNTANTS

21. Restrictions on practising as accountant.

RESTRICTIONS AS TO USE OF TITLES, ETC.

22. Restrictions as to use of titles conferred under this Act.

MISCELLANEOUS PROVISIONS

23. Offences and penalties.

24. Meaning of "practise”

25. Transitional arrangements.

SCHEDULES

34 of 1975,

23 of 1959,

16 of 1964,

15 of 1998.

AN ACT to provide for the establishment of an Institute of Chartered Accountants of Sri Lanka and of a Council of the Institute which shall be responsible for the management of its affairs for the issue of Sri Lanka accounting and Sri Lanka auditing standards and for the registration and control of and the maintenance of professional standards and discipline by members of the Institute in Sri Lanka and for matters connected with or incidental to the matters aforesaid.

[Am by s 2 of Act 15 of 1998.]

[Date of Commencement: 15th December, 1959]

1. Short title.

This Act may be cited as the Institute of Chartered Accountants Act.

ESTABLISHMENT OF INSTITUTE AND MEMBERSHIP

2. Establishment of Institute of Accountants of Sri Lanka.

There shall be an Institute with the name "The Institute of Chartered Accountants of Sri Lanka” (hereinafter referred to as ”the Institute”)

3. Incorporation of Institute.

(1) The persons for the time being enrolled as members of the Institute shall be a body corporate with the name "The Institute of Chartered Accountants of Sri Lanka”.

(2) The Institute shall have perpetual succession and a common seal and may sue or be sued in its corporate name and may hold, acquire and dispose of any property, movable or immovable.

3A. Objects of the institute.

The objects of the Institute shall be—

(i) to promote, in general the theory and practice of accountancy and in particular, auditing, financial management and taxation;

(ii) to enroll, educate and train members who are desirous of learning or improving their skills and knowledge, in disciplines such as auditing, financial management and taxation;

(iii) to preserve the professional independence of accountants and to ensure the maintenance of high standards of professional work and conduct, by its members;

(iv) to make donations and contributions for national, public, educational or charitable purposes;

(v) to make grants to Universities or to other educational Institutions;

(vi) to award scholarships, and to hold exhibitions, with a view to promoting the interests of the members of the Institute;

(vii) to organise, finance and maintain schemes for the granting, of diplomas, certificates and other awards to members of the Institute and of other professional bodies and to other persons who fulfill the prescribed conditions;

(viii) to make grants or contributions to any other society having similar objects as those of the Institute;

(ix) to do all such acts and things as are incidental or conducive, to the attainment of the above objects.

[S 3A ins by s 3 of Act 15 of 1998.]

4. Eligibility for membership of Institute.

(1) Subject to the provisions of section 15, the following persons shall be eligible for membership of the Institute—

(i) a person who passes the qualifying examinations for membership of the Institute to be conducted by the Council under this Act and completes a scheme of practical training approved by the Council and for such period as may be prescribed by the Council:

Provided, however, that such practical training shall not be restricted to service under a practising accountant;

(ii) a person who is a member of any society or institute of accountants by whatever name called and approved by regulations made by the Council as being in the opinion of the Council an association of equivalent status to the Institute:

Provided, however, that notwithstanding the approval of any such society or institute the Council may declare that any class or description of members of the society or institute shall not be eligible for membership of the Institute; and

(iii) a person who was, at the 15th day of December, 1959, registered as an Auditor under the Companies (Auditors) Regulations, 1941.

(2) Any regulations made by the Council prescribing practical training for the purpose of paragraph (i) of subsection (1) may contain such special provisions as the Council may deem expedient declaring that a person who had commenced prior to the 15th day of December, 1959, or the 29th day of August, 1975, and completed or completes, whether prior to or after the aforesaid dates, training as an articled clerk under a practising accountant for such period as may be specified in the regulations shall be deemed to have completed the training prescribed for the purposes of the aforesaid paragraph (i).

(3) Any regulations made by the Council by which any society or institute is approved for the purposes of
paragraph (ii) of subsection (1) may provide, as a condition of such approval, that a member of such society or institute shall not be eligible for membership of the Institute of Chartered Accountants of Sri Lanka, unless he has undergone such training as approved by the Council for such period as may be specified.

[S 4 subs by s 2 of Law 34 of 1975.]

5. Fee for membership of Institute.

(1) Subject to the provisions of section 15 a person who is eligible for membership of the Institute shall be enrolled as a member upon payment to the Council of a fee of one hundred and twenty-five rupees or such other amount as may be substituted therefor by regulation. Such fee shall be paid to the president of the Council or, if the Council has not been constituted, to the Registrar of Companies.

(2) The enrollment of a person as a member of the Institute shall be effective until the thirty-first day of December of the year of enrollment; and the enrollment may be renewed annually upon payment to the Council of the prescribed fee in respect of each such renewal.

6. Classification of members as Fellows and Associates.

(1) The members of the Institute shall be divided into two classes consisting respectively of Fellows and Associate Members.

(2) Any member of the Institute who satisfies the Council that he has been in continuous practice as an accountant for not less than five years, whether before or after the 15th day of December, 1959, or partly before and partly after that date, or, who has completed ten years as a member of the Institute, shall on application made to the Council in that behalf on or before December 31, 1985, and on payment to the Council of a prescribed fee be registered by the Council as a Fellow of the Institute and shall be entitled to use the addition "F C W” after his name to indicate that he is a Fellow.

[S 6(2) subs by s 3(1) of Law 34 of 1975.]

(3) A member of the Institute who is not eligible for registration by the. Council as a Fellow of the Institute under subsection (2), shall be eligible for registration as a Fellow of the Institute by the Council, on completion of five years after admission to membership of the Institute and on fulfilling such requirements as may be prescribed by the Council for the advancement to Fellowship of the Institute, and upon an application being made to the Council and on payment to the Council of the prescribed fee. Such member shall upon registration by the Council as a Fellow of the Institute be entitled to use the addition "F C A” after his name to indicate that he is a Fellow

[S 6(3) subs by s 4 of Act 15 of 1998.]

(4) Every member of the Institute who is not registered under subsection (2) or subsection (3) as a Fellow of the Institute shall be an Associate Member and shall have the right to use the addition "A C H” after his name to indicate that he is an Associate Member.

[S 6(4) ins by s 3(1) of Law 34 of 1975.]

(5) Every member of the Institute shall be entitled to take and use the title "Chartered Accountant”.

[S 6(4) re-numbered as s 6(5) by s 3(2) of Law 34 of 1975.]

THE COUNCIL

7. Constitution of Council.

(1) There shall be a Council of the Institute, in this Act referred to as "the Council”.

(2) The Council shall consist of a President, a Vice-President and fourteen other members appointed or elected as hereinafter provided.

[S 7(2) subs by s 5(1) of Act 15 of 1998.]

(3) During the period of ten years commencing on the 15th day of December, 1959, the president, the vice-president and the other members of the Council shall be appointed by the Minister, and of the members so appointed at least six shall be persons who are members of the Institute, of whom not more than four-shall be practising accountants,

[S 7(3) am by s 5 of Act 16 of 1964.]

(4) After the expiration of the period of ten years referred to in subsection (3), the president and the vice-president of the Council shall be elected by the members of the Institute from themselves, and the remaining members of the Council shall consist of—

[S 7(4) am by s 5 of Act 16 of 1964.]

(a) eight members appointed by the Minister of whom one shall be the Auditor-General if he is a member of the Institute and another shall be the immediate past President of the Council;

[S 7(4)(a) subs by s 5(2)(a) of Act 15 of 1998.]

(b) six members elected by the members of the Institute, from among its members;

[S 7(4)(b) subs by s 5(2)(a) of Act 15 of 1998.]

(c) a member appointed by the Minister, in a case where the Auditor-General is not a member of the Institute or the immediate past President declines to accept appointment to the Council; and

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