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

CS Meera Iyer, a practising Company Secretary, is the subject of a complaint alleging a lapse that is not listed in any Schedule to the Company Secretaries Act, 1980. Her counsel argues that the Director (Discipline) cannot inquire because the act is not in any Schedule. Which view is correct under Section 22?

The Director (Discipline) can still inquire. Section 22 says misconduct includes acts or omissions listed in the Schedules, but it does not limit or abridge the Director's power under Section 21(1) to inquire into a member's conduct in other circumstances.

  1. AThe Director (Discipline) can still inquire, because Section 22 does not limit the power to inquire into a member's conduct under other circumstancesCorrect
  2. BThe Director (Discipline) must close the complaint, because only Scheduled acts can ever be misconduct
  3. CThe complaint can proceed only if the Central Government nominees approve it
  4. DThe complaint can proceed only if the member admits the lapse in writing

Explanation

Section 22 provides that professional or other misconduct includes any act or omission in the Schedules. It adds that nothing in the section limits the Director (Discipline)'s power under Section 21(1) to inquire into a member's conduct under other circumstances. So the argument fails.

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