Section 21B of The Cost Accountants Act, 1959
1[21B. Disciplinary Committee.--(1) The Council shall constitute a Disciplinary Committee consisting of the President or the Vice-President of the Council as the Presiding Officer and two members to be elected from amongst the members of the Council and two members to be nominated by the Central Government from amongst the persons of eminence having experience in the field of law, economics, business, finance or accountancy: Provided that the Council may constitute more Disciplinary Committees as and when it considers necessary.
- (2)The Disciplinary Committee while considering the cases placed before it, shall follow such procedure as may be specified.
- (3)Where the Disciplinary Committee is of the opinion that a member is guilty of a professional or other misconduct mentioned in the Second Schedule or both the First Schedule and the Second Schedule,it shall afford to the member an opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:--
- (a)reprimand the member;
- (b)remove the name of the member from the Register permanently or for such period, as it thinks fit;
- (c)impose such fine as it may think fit, which may extend to rupees five lakhs.
- (4)The allowances payable to the members nominated by the Central Government shall be such as may be specified.]
Summary
- The Council must constitute a Disciplinary Committee to handle serious misconduct cases.
- The Committee consists of five members, including the President or Vice-President of the Council as the Presiding Officer.
- It includes two members elected from the Council and two members nominated by the Central Government.
- The Central Government nominees must be eminent persons with experience in law, economics, business, finance, or accountancy.
- The Council can set up more than one Disciplinary Committee if it is necessary.
- If the Committee finds a member guilty under the Second Schedule or both schedules, it must hear them first, and can reprimand them, suspend them permanently or temporarily, or fine them up to five lakh rupees.
Practical examples
FAQ
1. Who presides over the Disciplinary Committee?
The President or the Vice-President of the Council of the Institute serves as the Presiding Officer of the Disciplinary Committee.
2. What is the composition of the Disciplinary Committee?
It consists of five members, including the Presiding Officer, two members elected by the Council, and two members nominated by the Central Government.
3. What qualifications must the Central Government nominees have?
They must be persons of eminence with experience in the field of law, economics, business, finance, or accountancy.
4. What is the maximum fine that the Disciplinary Committee can impose?
The Disciplinary Committee can impose a fine that may extend to five lakh rupees.
5. Can the Council create more than one Disciplinary Committee?
Yes, the Council can constitute multiple Disciplinary Committees as and when it considers it necessary.
Test yourself
Q1.Under Section 21B of The Cost Accountants Act, 1959, who can serve as the Presiding Officer of the Disciplinary Committee?
Q2.Under Section 21B of The Cost Accountants Act, 1959, how many members are nominated by the Central Government to the Disciplinary Committee?
Q3.Under Section 21B of The Cost Accountants Act, 1959, what is the maximum fine that the Disciplinary Committee can impose on a member found guilty of misconduct?
Q4.Under Section 21B of The Cost Accountants Act, 1959, for how long can the Disciplinary Committee remove a member's name from the Register of members?