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

Three partners, Anil, Bina and Chetan, run a firm. Anil and Bina are members of the Institute in practice, but Chetan is a chartered accountant who is not a member of the Institute. The partners propose to call the firm 'Anil Bina & Associates, Company Secretaries'. Under the Act, what is the position?

It is not allowed. The Act permits a firm to be known as Company Secretaries only when all its partners are members of the Institute and in practice. Because Chetan is not a member, the firm cannot use that description, regardless of majority.

  1. AAllowed, as the majority of partners are members in practice
  2. BAllowed, if Chetan does not sign any certificate
  3. CNot allowed, because the firm may be known as Company Secretaries only if all partners are members in practiceCorrect
  4. DAllowed, if the firm informs the Council

Explanation

The proviso to section 7 permits a firm to be known by its firm name as Company Secretaries only where all partners are members of the Institute and in practice. Chetan is not, so the condition fails. A majority is not sufficient.

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