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CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

CS Rohan Mehta, an associate member of the Institute, has not obtained a certificate of practice from the Council. He puts up a signboard in Pune describing himself as a practising Company Secretary and begins certifying documents for clients. Which statement correctly describes his position under the Company Secretaries Act, 1980?

Rohan cannot practise because a member needs a certificate of practice from the Council. By holding himself out as in practice without one, he attracts the penalty in section 24(b) of the Company Secretaries Act, 1980. Membership alone gives no right to practise.

  1. AHe is allowed to practise because membership of the Institute alone gives the right to practise
  2. BHe is not entitled to practise and, by representing that he is in practice, becomes liable to punishment under section 24Correct
  3. CHe may practise in India but not elsewhere without a certificate
  4. DHe may practise provided he pays the annual fee before 1 April of the following year

Explanation

Section 6(1) bars a member from practising unless he has obtained a certificate of practice from the Council. Section 24(b) punishes a member without such a certificate who represents that he is in practice or practises. Membership alone is not enough, so the first option is wrong.

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