Jaideep Shenoy / The Hindu

• The central council of ICAI has taken a decision to this effect
• They can hold executive positions in such companies
• Suitable logo to be found for the profession by October

Mangalore, Sep 10: The Institute of Chartered Accountants of India has permitted chartered accountants to practise and hold executive positions in companies that are exclusively into consultancy services. Till now, chartered accountants were allowed to practise only as proprietors or in a partnership firm and could not become managing or executive directors of the company.

President of the ICAI T N Manoharan told said that the central council of the institute had taken a decision to this effect.

Earlier, chartered accountants could not become managing directors or executive directors of companies nor take an active role in the day-to-day running of the company.

Members had to take special permission in such a scenario, he said. However, in the changed situation, where others were rendering consultancy through corporate bodies, the institute felt this constraint would put chartered accountants at a disadvantage.

Members would now have access to a larger pool of human resources and could undertake more work, he said.

However, such companies should undertake only consultancy services and not enter into any other business or work, he clarified.

Chartered accountants, who are permitted by the CA Act to render consultancy services, can hold positions in such corporate firms and become executive or managing director and even practise in the firms.

They can also train students for articleship and guide them academically, he added.

On the brand-building initiative, Manoharan said the central council was expected to take a decision on a suitable logo for the profession by October.

The National Institute of Design, Ahmedabad, had submitted six entries, including three more on request, he said.

"We have received many suggestions and entries from members following publication in the Institute's journal of our intent to come out with a logo for the profession," he said.