S is a Company Secretary in Practice and also the Managing Committee Member of the Chapter of the Institute of Company Secretaries of India (ICSI). He invited Y (a senior Government official) to the Chapter's Independenc
CS Professional · Compliance Management, Audit and Due Diligence · PYQS · December 2024
S is a Company Secretary in Practice and also the Managing Committee Member of the Chapter of the Institute of Company Secretaries of India (ICSI). He invited Y (a senior Government official) to the Chapter's Independence Day celebration function. He spends heavily on the Y towards his travel and stay arrangements. He booked five-star hotel room for one day for Y and gave business class Air Tickets to Y along with Mrs. Y, to attend the Chapter's function, with an intention to secure professional opportunities from the government department for his professional firm. The chapter of ICSI has paid for these expenses. Moreover, he has also misused the confidential data available with the office of the Institute for personal use and his personal benefits. Citing the relevant code of conduct of the ICSI, state whether the act of S will amount to misconduct.
Answer & Explanation:
Clause 2 of Part IV (Other Misconduct in relation to members of the Institute generally) (Part IV of the First schedule) of the Company Secretaries Act, 1980 provides that - A member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, if in the opinion of the Council, he brings disrepute to the profession or the institute as a result of his action whether or not related to his professional work. Following activities of members may also tantamount to misconduct; Sending an e-mail to number of members (e-groups) criticizing the decisions of the Council in derogatory and filthy language. Discussing through e forums failures of the Council/ president/secretary by using derogatory and filthy language. Writing letter(s) in an aggressive, loud and filthy language to the Ministry of Corporate Affairs, about working of ROC offices/ MCA site, inability to upload forms etc. Arranging DHARANA/ agitations at the gates of the Govt. Offices/institute's offices in a manner not befitting a professional. Instigating Students or other members by creating a pandemonium in or around Institute's offices by raising issues pertaining to syllabus, training, examination or any other reason whatsoever. Misusing the confidential data available with the offices of the Institute for personal purposes. Inviting Govt. Officers for Chapter's / Regional Council's Programs by spending heavily on their travel & stay arrangements, with an intention to get personal mileage. Tampering with the Books of Accounts/ Minutes of the meetings of the Managing Committees of Chapter/ Regional Councils. Conclusion: Yes, S is guilty of professional misconduct in relation to the Institute, by spending hefty amount on the Air travel and stay on the five-star hotel of Mr. Y and Mrs Y, just for his personal benefits so that he can get professional opportunities through Government Department. Apart from that, he has also misused the confidential data available with the Institute for his personal benefits which is also misconduct under Part IV of First schedule.
Topics: Professional Ethics
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