Chapter-3

Chapter-3 Constitution and Functions, Duties and Powers of Council
7. Constitution of Council:

(1) A Council shall be constituted for carrying out, or causing to be carried out, the programmes necessary for the attainment of the objectives of the Institute in a well planned manner and for monitoring and managing all the acts and actions of the Institute.
(2) Except as otherwise provided elsewhere in this Act, the Council shall exercise all the powers and perform all the duties conferred on and assigned to the Institute, subject to this Act and the Rules and Bye-laws framed under this Act.
(3) The Council shall consist of the following councilors:

(a) Ten persons elected by the chartered accountant members from amongst themselves -Member
(b) Four persons elected by the registered auditors from amongst themselves -Member
(c) Three persons nominated by Government of Nepal upon the recommendation of the Auditor General, from amongst the persons having experience on accountancy -Member
(4) The councilors shall elect the chairperson and the vice- chairperson from the first class chartered accountants out of the councilors referred to in Clause (a) of Sub-section (3).
(5) The term of office of the chairperson and the vice- chairperson  shall be One year; and upon the expiry of their term of office, they may be
elected for One more term.
(6) The term of office of the councilors shall be Three years; and upon the expiry of their term of office, they may be re-elected or re- nominated.
(7) The procedures relating to the election of councilors shall be as prescribed.
(8) The functions, duties and powers of the chairperson and the vice- chairperson shall be as prescribed.

8. Circumstance where councilor ceases to hold office:

(1) A councilor shall cease to hold his or her office in any of the following circumstances:
(a) If the councilor ceases to be a member of the Institute, Provided that, this provision shall not be applicable to the nominated councilor;
(b) If resignation tendered by the councilor from his or her office is accepted by the Council;
(c) If the councilor absents himself or herself from three consecutive meetings of the Council without giving a notice with reason to the Council;
(d) If the term of office of the councilor expires;
(e) If it is proved that the councilor has not abided by the conduct referred to in Section 34;
(f) If the councilor dies.
(3) While tendering resignation pursuant to Clause (b) of Sub- section (1), the chairperson shall tender it to the vice-chairperson and the
other councilors, to the chairperson.

9. Vacancy and fulfillment:

(1) Where the remaining term of office of any councilor elected pursuant to Clause (a) or (b) of Sub-section (3) of Section 7, whose office has become vacant due to his or her death or resignation or being disqualified to be a member of the Institute pursuant to the provisions of this Act, is less than One year, the Council shall designate as the councilor any member of the Institute as referred to in the said respective Clauses of Sub-section (3) of the said Section, and where such term is more than One year, the vacancy shall be filled by way of election.
(2) Any office falling vacant owing to the death of any councilor or resignation tendered by a councilor nominated pursuant to Clause (c) of Sub-section (3) of Section 7 shall be fulfilled by nominating a person as the councilor by following the procedures set forth in the said Clause, for the remaining term of office of such a councilor.

9. Meeting and decision of Council:

(1) The Executive Director shall convene the meeting of the Council on such date and at such time and place as may be appointed by the chairperson.
(2) The Council shall generally meet Six times a year, and the interval between the Two consecutive meetings shall not be more than Three months.
(3) The chairperson shall chair the meeting of the Council, and in his or her absence, the vice-chairperson and in the absence of both the
chairperson and the vice-chairperson; a councilor selected by the councilors from amongst themselves shall chair the meeting of the Council.
(4) If Twenty Five percent councilors of the total number of councilors make an application in writing to the chairperson that it is necessary to convene a meeting of the Council, the chairperson shall direct the Executive Director to convene a meeting of the Council within Fifteen days of such application.
(5) The presence of Fifty percent councilors of the total number of councilors shall be deemed to constitute a quorum for a meeting of the Council.
(6)The majority of opinion at a meeting of the Council shall be deemed to be a decision of the Council, and in the case of a tie, the person chairing the meeting shall exercise the casting vote.
(7) The decisions of the Council shall be authenticated by the Executive Director.
(8) The Council may, if it deems so necessary, invite any officer of Government of Nepal, any national or foreign expert, advisor or highly
reputed person related with the accountancy to attend a meeting of the Council as an observer.
(9) Other Rules of procedures relating to the meeting of the Council shall be as determined by the Council itself.

11. Functions, duties and powers of Council: ? ……. The functions, duties and powers of the Council shall be as follows:
(a) To conduct examinations of candidates who join the accountancy.
(b) To determine the procedures in relation to the membership of the Institute and registration of name as a member having obtained professional certificate.
(c) To provide a person who holds the required qualification with an appropriate type of membership of the Council pursuant to Section 16.
(d) To make coordinative development of the accountancy by having maximum utilization of the available means and resources.
(e) To determine the qualification required for efficient human resources for the development of the accountancy.
(f) To determine the type of curriculum and practical training required to pursue the qualification necessary for obtaining the membership.
(g) To carry out different teaching and training programmes in cooperation with any university or other educational institute
by the Institute itself.
(h) To grant the professional certificate to the members for carrying on the accountancy.
(i) To enhance the capacity of members by providing them with  career development opportunities.
(j) To monitor as to whether or not the members or members having obtained the professional certificate have acted in conformity with the professional code of conduct prescribed for the members or members having obtained the professional certificate.
(k) In accordance with the recommendation of the disciplinary committee, to take necessary action against any members and members having obtained the professional certificate for their acts and actions in contravention of the professional code of conduct.
(l) To give theoretical or practical directions and guidelines in various aspects of the accountancy and auditing and carry out other functions as may be necessary for the professional  development.
(m) To observe, or cause to be observed, accounting standards and standards on auditing provided or recommended by the  Accounting Standards Board and Standards on Auditing Board, and to regulate whether such standards have been observed or not.
(n) To safeguard and promote the rights, interests and reputation of the members.
(o) To render advice and suggestion to Government of Nepal for the improvement of the various laws in force in the fields related with industry, commerce, finance, revenue and accountancy.

(p) To accept membership of the International Federation of Accountants, and regional and sub-regional federations, and establish contact with the accountants institutes of other countries.
(q) To recommend appropriate educational standards for accounting education in coordination with universities and other educational institutes.
(r) To conduct necessary trainings, symposia and seminars in order to enhance professional efficiency of the registered auditors.
(s) To conduct short term or long term trainings, symposia etc. for the benefit of accountancy human resources in service.
(t) To publish materials relating to the accountancy.
(u) To operate a library relating to the accountancy.
(v) To determine the procedures to be followed by the committees to be formed by the Council.
(w) To approve the budget of the Institute and manage the funds.

(x) To appoint such employees as may be required for the Institute and prescribe their remuneration and other facilities.

(x1) To provide for on-going professional education for members.
(x2) To develop educational system in order to prepare account technicians and do necessary acts pertaining thereto.
(y) To carry out such other functions as are prescribed by this Act or the Rules and Bye-laws framed under this Act.
(z) To carry out such other functions as may be necessary for the attainment of the objectives of this Act.

12. Act and action not to be invalid: In cases where any act and action has been done in pursuance of a decision of the Council when the seat of any
councilor is vacant or a person who has not possessed such qualification as required to become a councilor has been elected or nominated as the
councilor, such act and action already done shall not be invalid by that only reason.

13. Committees of Council:

(1) The Council may form the following permanent committees which shall be responsible to it:
(a) Disciplinary committee;
(b) Examination committee;
(c) Executive committee;
(d) Professional guidance committee.
(2) The Council may, as per necessity, form other committees for the attainment of the objectives of the Institute.
(3) The functions, duties and powers of the committees formed pursuant to this Section shall be as prescribed.
(4) In forming a committee under Sub-section (1), the committee shall not be so formed that the members of one committee, save the
chairperson and the vice-chairperson, are also included in another committee.

14. Disciplinary committee:

(1) There shall be a disciplinary committee as follows to inquire into a complaint and recommend the Council for necessary action in cases where any one lodges a complaint in the Institute that any member has done any act or action contrary to this Act or the Rules or code of conduct framed under this Act, or where the Institute receives such information:

(a) A fellow chartered accountant designated by the Council from amongst the councilors referred to in Clause (a) of Sub-section (3) of Section 7
-Chairperson
(b) Three persons nominated by the Council from amongst the councilors -Member
(c) Two persons nominated by the Council from amongst the members -Member
(d) One person nominated by the Auditor General -Member
(2) Notwithstanding anything contained in Sub-section (1), the chairperson or any member of the disciplinary committee shall not be entitled to take part and cast vote at a meeting which is to be held to inquire into a complaint made that the chairperson or the member has done any act and action contrary to this Act or the Rules, bye-laws or codes of conduct framed under this Act and to make recommendation to the Council for necessary action.
(3) The procedures relating to the meeting of disciplinary committee  and the term of office of the chairperson and members of the disciplinary
committee shall be as prescribed.
(4) The disciplinary committee shall have the same powers as are vested in the court in respect of issuing an order to the concerned person,
receiving evidence and examining witnesses.
? (5) The disciplinary committee shall make recommendation, along with its opinion and finding, to the Council for taking necessary action against a member found guilty from its investigation; and the Council may,  in view of such recommendation, impose any of the following penalties on the concerned member, according to the gravity of the offence:
(a) Reprimanding;
(b) Removing from the membership for a period not exceeding Five years;
(c) Prohibiting from carrying on the accountancy for any specific period;
? (d) Canceling the professional certificate or membership.
(6) Where the disciplinary committee, upon investigating the matter that any councilor has done any act or action contrary to this Act or Rules,
bye-laws or code of conduct framed under this Act, has made recommendation, along with its opinion and findings, to the Council for instituting necessary action against the councilor, such councilor shall not be entitled to take part and cast vote at the meeting of the Council while taking decision by the Council on such recommendation.? (7) Before imposing penalty as referred to in Sub-section (5), the Council shall provide a reasonable opportunity to the concerned member to defend himself/herself.
(8) The concerned member may, if he or she is not satisfied with the decision referred to in Sub-section (5), make an appeal to the Court of Nepal.

15. Executive committee:

(1) There shall be formed an executive committee comprising of the following members in order to carry out the day-to-day business of the Institute, under the direction of the Council:
(a) Chairperson -Chairperson
(b) Vice-chairperson -Vice-chairperson

(c) Two persons nominated by the Council from amongst
the councilors -Member
(d) Executive Director -Member-secretary
(2) The functions, duties and powers of the executive committee and the procedures of its meetings shall be as prescribed