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Pre-certification: Co Secys peeved over Ministry move
August, 02nd 2006

Members of the Institute of Company Secretaries of India (ICSI) are feeling let down over the act on the part of the Company Affairs Ministry diluting their prerogative to pre-certify various documents submitted by companies to the Registrar of Companies. The Ministry, in February, had issued a notification empowering Chartered Accountants and ICWAI Cost Accountants, along with practising Company Secretaries, to pre-certify forms and submissions of companies.

The Clause 383C of the Companies (Amendment) Bill, 2003, (that was introduced, but not passed) ensures exclusive rights of pre-certification to Company Secretaries. However, the notification put forth by the Ministry has thwarted this privilege of Company Secretaries.

Members Resign

"This is an intrusion into the core area of company secretaries. We have submitted representations expressing our displeasure over the decision; but no action has been take as yet," said a source at the ICSI.

This issue has also led to the resignation of four ICSI members Mr Mahesh A. Athavale, Mr Nesar Ahmed, Mr S.D. Irani and Mr Bipin S. Acharya from the central council.

"Pre-certification has to be done by people who have expertise in company law. In fact our institute provides specialised education and training in company law and gives highest emphasis on providing in its curriculum over 27 per cent weightage to company law," said a member, adding, "this is much less in the case of CA or ICWA curriculum." The ICSI is a statutory body formed by an Act of Parliament and has around 4,000 practisingmembers.

 
 
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