Kavita, a practicing company secretary, posted a request on whatsapp group of practicing company secretaries for providing secretarial audit in any company. She also made a similar request on whatsapp to her college frie

CS Executive · Company Law · PYQS · December 2020
Kavita, a practicing company secretary, posted a request on whatsapp group of practicing company secretaries for providing secretarial audit in any company. She also made a similar request on whatsapp to her college friends. Has she committed professional misconduct?

Answer & Explanation:

According to Clause 6 of Part I of the first Schedule to the Company Secretaries Act, 1980, a Company Secretary in Practice shall be deemed to be guilty of professional misconduct, if he/she 'solicits clients or professional work, either directly or indirectly, by circular, advertisement, personal communication, interview or by any other means'. However, there are two exceptions. According to the said clause, nothing contained in this clause shall be construed as preventing or prohibiting Any Company Secretary from applying or requesting for or inviting or securing professional work from another Company Secretary in practice. A member from responding to tenders or enquiries issued by various users of professional services or organizations from time to time and securing professional work as a consequence. Accordingly, when Kavita posted a request on What'sapp group of Company Secretaries in Practice, it would not amount to professional misconduct. However, when she sends messages to her college friends seeking professional work it would amount to professional misconduct.

Topics: Professional Ethics

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