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CS Professional · Compliance Management, Audit and Due Diligence · Values, Ethics and Professional Conduct

A client argues that a CS cannot be inquired against for a lapse because the lapse is not listed in any Schedule to the Company Secretaries Act, 1980. Which statement is correct?

The client is wrong. Professional or other misconduct includes Scheduled acts or omissions, but the Act expressly preserves the Director (Discipline)'s power to inquire into a member's conduct under any other circumstances. The Schedules therefore do not limit the scope of inquiry.

  1. ACorrect, because misconduct is limited to acts listed in the Schedules
  2. BCorrect, unless the Council first amends the Schedules
  3. CIncorrect, because the Director (Discipline) may inquire into a member's conduct under other circumstances tooCorrect
  4. DIncorrect, because any lapse automatically leads to removal from the Register

Explanation

Section 22 states that misconduct includes acts or omissions in the Schedules, but does not limit or abridge the Director (Discipline)'s power under section 21(1) to inquire into a member's conduct under any other circumstances. Option A therefore misstates the law, and removal is not automatic.

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