THECOSTANDMANAGEMENTACCOUNTANTSACT,196

CONTENTS

CHAPTERI.
Preliminary
1 Shorttitle,extentandcommencement
2 Definitions
CHAPTERII.
INSTITUTEOFCOSTANDMANAGEMENTACCOUNTANTSOF
PAKISTAN
3 InCorporationoftheInstitute
4 EntryofnamesintheRegister
5 Associatesandfellows
6 Certificateofpractice
7 Memberstobeknownas[CostandManagementAccountants]
8 Disabilities
CHAPTERIII.
COUNCILOFINSTITUTE
9 ConstitutionoftheCouncil
10 ElectionoftheCouncil
11 President,Vicepresident,SecretaryandTreasurer
12 Resignationofmembershipandcasualvacancies
13 DurationanddissolutionofCouncil
14 FunctionsoftheCouncil
15 Staff,remunerationandallowances
16 CommitteesoftheCouncil
17 BranchCouncils
18 FinancesoftheCouncil
CHAPTERIV.
REGISTEROFMEMBERS
19 Register
20 RemovalofnamefromtheRegister
CHAPTERV.
PENALTIES

Page 1 of 23
21 Penaltyforfalselyclaimingtobeamember,etc
22 PenaltyforusingthenameoftheCounciletc
23 Companiesnottoengagein[CostandManagementAccountancy]inPakistan
24 Unqualifiedpersonsnottosigndocuments
25 Offencesbycompanies
26 Sanctiontoprosecute
CHAPTERVI.
DISSOLUTIONOFTHEEXISTINGINSTITUTEOFINDUSTRIAL
ACCOUNTANTS
27 DissolutionoftheinstituteregisteredunderActVIIof1913
28 Assetsandliabilitiesofthedissolvedcompany
29 EmployeesofthedissolvedCompany
CHAPTERVII.
MISCELLANEOUS
30 AlterationintheRegisterandcancellationofcertificate
31 Protectionofactiontakeningoodfaith
32 Maintenanceofbranchoffices
33 Reciprocity
34 Powertomakeregulations
35 Powertogivedirectionsformakingregulations,etc

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THECOSTAND1[MANAGEMENT]ACCOUNTANTSACT,1966
2ACTNO.XIVOF1966

[19thJULY,1966]

An Act to make provision for the regulation of the profession of cost and [management]
accountants.

WHEREAS it is expedient to make provision for the regulation of the profession of cost and
1[management] accountants and for that purpose to establish an Institute of 1[management]
accountants

AND WHEREAS the national interest of Pakistan in relation to the achievement of uniformity
withinthemeaningofclause(2)ofArticle131oftheConstitutionrequiresCentrallegislationinthe
matter

Itisherebyenactedasfollows:__

CHAPTERI

PRELIMINARY

1. Short title, extent and commencement.__(1) This Act may be called the 3[Cost and
ManagementAccountantsAct,1966].

(2)ItextendstothewholeofPakistan.

(3)Itshallcomeintoforceonsuchdate4asthe 5[FederalGovernment]may,bynotificationin
theofficialGazette,appointinthisbehalf.

2.Definitions.__(1)InthisAct,unlessthereisanythingrepugnantinthesubjectorcontext,__

(a)associatemeansanassociatememberoftheInstitute

6[(aa) cost and management accountant means a person who is an associate or a fellow
memberoftheInstitute]

(b)CouncilmeanstheCounciloftheInstitute:

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976),s.2,forindustrial.
2 ForStatementofObjectsandReasons,seeGaz.ofP.1966,Ext.,p.331(R).
3 Subs.ibid.,s.3,forCostandIndustrialAccountantsAct,1966.
4 i.e.the20 th dayofAugust,1966,see,Gaz.,ofP.1966,Ext.,datedthe18 th August,1966,p.557.
5 Subs.byF.A.O.,1975,Art.2andTableforCentralGovernment.
6 Newcl.(aa)ins.byAct70of1976,s.4.

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 (c)dissolvedcompanymeansthecompanyregisteredundertheCompaniesAct,1913,as
thePakistanInstituteofIndustrialAccountants

(d)fellowmeansafellowmemberoftheInstitute

1*******

(f) Institute means the2[Institute of Cost and Management Accountants of Pakistan]

constitutedunderthisAct

(g)prescribedmeansprescribedbyregulationsmadeunderthisAct

(h)PresidentmeansthePresidentoftheCouncil

(i)RegistermeanstheRegisterofmembersoftheInstitutemaintainedunderthisAct

(j)VicePresidentmeanstheVicePresidentoftheCouncil

(k)yearmeansthefinancialyear.

(2)SaveasotherwiseprovidedinthisAct,amemberoftheInstituteshallbedeemedtobein
practicewhen,individuallyorinpartnershipwithoneormoremembersoftheInstituteinpractice,
he,inconsiderationofremunerationreceivedortobereceived,

(a)engageshimselfinthepracticeofcostand3[management]accountingor

(b) offers to perform service involving the costing or pricing of goods or services, or the
preparation, verification or certification of cost accounting and related statements, or
holdshimselfouttothepublicasacostand3[management]accountantor

(c)rendersprofessionalserviceorassistanceinoraboutmatterofprinciplesordetailrelating
tothecostand 3[management]accountingprocedures,ortherecording,presentationor
thecertificationofcostingfactsordataor

(d)renderssuchotherservicesas,intheopinionoftheCouncil,areormayberenderedby
[acostandmanagement]accountant

andtheexpressiontobeinpractice,withitsgrammaticalvariationsandcognateexpressions,shall
beconstruedaccordingly.

Explanation.__AmemberoftheInstitutewhoisawholetimesalariedemployeeofanyperson
shallnotbedeemed"tobeinpractise"withinthemeaningofthissubsection.

1 Cl(e)omittedbytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976),s.4.
2 Subs.ibid.,forPakistanInstituteofIndustrialAccountants.
3 Subs.ibid.forIndustrial.

Page 4 of 23
 CHAPTERII
1[INSTITUTEOFCOSTANDMANAGEMENTACCOUNTANTSOFPAKISTAN].

3.InCorporationoftheInstitute.__(1)AllpersonswhosenamesareenteredintheRegisterat
the commencement of this Act and all persons who may hereafter have their names entered in the
RegisterundertheprovisionsofthisAct,solongastheycontinuetohavetheirnamesborneonthe
said Register are hereby constituted a body corporate by the name of the 2[Institute of Cost and
Management Accountants of Pakistan] and all such persons shall be known as members of the
Institute.

(2) The Institute shall have perpetual succession and a common seal, and shall have power to
acquire,holdanddisposeofproperty,bothmovableandimmovable,andshallbyitsnamesueorbe
sued.

4. Entry of names in the Register.__(1)The following persons shall be entitled to have their
namesenteredintheRegister,namely:__

(a) any person who was, immediately before the commencement of this Act, a fellow or
associateofthedissolvedcompany

(b) any person who has passed such examination and completed such training as may be
prescribedformembershipoftheInstitute

(c) any person who has passed such other examination and completed such other training
outsidePakistanasisrecognisedbythe 3[FederalGovernment],orbytheCouncilwith
the approval of the 3[Federal Government], as being equivalent to the examination and
training prescribed for membership of the Institute and, in case he is not permanently
residing in Pakistan, fulfils such other conditions as the 3[Federal Government], or the
Councilwiththeapprovalofthe 3[FederalGovernment],asthecasemaybe,maydeem
fittoimpose

(d) any person domiciled in Pakistan, who is, at the commencement of this Act, whether
withinorwithoutPakistan,__

(i) studying for any foreign examination and also undergoing training and passes such
examinationandcompletessuchtrainingwithinthreeyearsofsuchcommencement,or

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act1976(70of1976)s.5,forheadingPakistanInstituteofIndustrialAccountants.
2 Subs.ibid.s.6,forPakistanInstituteofIndustrialAccountants.
3 Subs.byF.A.O,1975,Art.2andTableforCentralGovernment.

Page 5 of 23
 (ii)undergoingtraining,havingpassedanysuchforeignexamination,andcompletessuch
trainingwithinthesaidperiod,

ifsuchforeignexaminationandtrainingarerecognisedbythe1[FederalGovernment],orbythe
Councilwiththeapprovalof1[FederalGovernment],asbeingequivalenttotheexaminationand
trainingprescribedformembershipoftheInstitute.

(2) The Council shall, as early as possible, take such steps as may be necessary for having the
names of all such persons as are mentioned in clause (a) of subsection (1) entered in the Register
withoutanyapplicationbeingmadeinthatbehalforthepaymentofanyfeeandthenameofevery
suchpersonsoenteredshallbedeemedtohavebeenenteredatthecommencementofthisActfor
thepurposeofsubsection(1)ofsection3.

(3) Every person belonging to any of the classes mentioned in clauses (b), (c) and (d) of sub
section(1)mayhavehisnameenteredintheRegisteronanapplicationmadetoandgrantedbythe
Councilintheprescribedmannerandonpaymentoftheprescribedfee.

5. Associates and fellows.__(1) Save as otherwise provided in the Act, the members of the
Instituteshallbedividedintotwoclassesdesignatedasfellowsandassociates.

(2)Aperson,otherthanapersonmentionedinsubsection(3),shall,onhisnamebeingentered
intheRegister,beanassociateand,solongashisnameremainssoentered,shallbeentitledtouse
theletters2[A.C.M.A.]afterhisnametoindicatethatheisanassociateoftheInstitute.

(3)Thenameofapersonwhowas,immediatelybeforethecommencementofthisAct,afellow
ofthedissolvedcompanyshallbeenteredintheRegisterasafellowoftheInstituteandsuchperson,
solongashisnameremainssoentered,shallbeentitledtousetheletters 3[F.C.M.A.]afterhisname
toindicatethatheisafellowoftheInstitute.

(4)Apersonwhohasbeenanassociateforacontinuousperiodofnotlessthanfiveyearsand
who possesses such qualifications as the Council may prescribe, may apply to the Council for
admissionasfellowandiftheCouncilgrantshisapplicationhisnameshallbeenteredintheRegister
asafellow.

1 Subs.byF.A.O.,1975,Art.2andTable,forCentralGovernment.
2 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976),s.7,forA.P.I.A.
3 Subs.ibid.,s.7,forF.P.I.A.

Page 6 of 23
 Explanation.__Incomputingthecontinuousperiodduringwhichapersonhasbeenanassociate
oftheInstitutethereshallbeincludedanycontinuousperiodduringwhichhehasbeenanassociate
ofthedissolvedcompanyimmediatelybeforehebecameanassociateoftheInstitute.

(5)ThedecisionoftheCouncilonanapplicationundersubsession(4)shallbefinal.

6. Certificate of practice.__(1)No member of the Institute shall be entitled to practice within

PakistanunlessheholdsacertificateofpracticegrantedbytheCouncil.

(2)TheCouncilmaygrantacertificateofpracticetoamemberoftheInstitutewhoappliesinthe
prescribedformandpaystheprescribedannualfeeforsuchcertificate.

(3)Everymemberholdingacertificateofpracticeshallpaytheannualfeeforeveryyearwhich
shallbedueonthefirstdayofJulyofthatyear.

(4)Acertificateorpracticeshallbeliabletobecancelledfordefaultinpaymentoftheannualfee
foranyyear.

7.Memberstobeknownas1[CostandManagementAccountants].__(1)Everymemberofthe
Institute in practice shall, and every other member may, use the designation of 1[Cost and
ManagementAccountant].

(2) No member of the Institute in practice using the designation of 1[Cost and Management
Accountant] shall use, whether in addition thereto or in substitution therefore, any other costing
designation:

Provided that nothing in this subsection shall be deemed to prohibit any such member from
adding any other description or designatory letters to his name, if entitled thereto, to indicate
membership of such other institute of accountancy whether in Pakistan or elsewhere, as may be
recognisedbytheCouncilinthisbehalf,oranyotherqualificationthathemaypossess,ortoprohibit
afirm,allthepartnersofwhicharemembersoftheInstituteinpractice,frombeingknownbyitsfirm
nameas1[CostandManagementAccountants].

8.Disabilities.Notwithstandinganythingcontainedinsection4apersonshallnotbeentitledto
havehisnameenteredinorborneontheRegisterifhe__

(i)hasnotattainedtheageoftwentyoneyearsatthetimeofhisapplicationfortheentryof
hisnameintheRegisteror

(ii)isofunsoundmindandstandssoadjudgedbyacompetentcourtor

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976)s.8,forIndustrialAccountants.

Page 7 of 23
 (iii)isanundischargedinsolventor

(iv)havingbeendischargedofinsolvency,hasnotobtainedfromthecourtacertificatestating
thathisinsolvencywascausedbymisfortunewithoutanymisconductonhispartor

(v) has been convicted by a competent court, whether within or without Pakistan, of an
offenceinvolvingmoralturpitudeandpunishablewith 1**imprisonment,orofan
offence,notofatechnicalnature,committedbyhiminhisprofessionalcapacityunlessin
respect of the offence committed he has either been granted a pardon, or, on an
application made by him in this behalf, the 2[Federal Government] has, by an order in
writing,removedthedisabilityor

(vi) has been removed from the membership of the Institute on being found on inquiry to
havebeenguiltyofprofessionalorothermisconduct:

Providedthatapersonwhohasbeenremovedfrommembershipforaspecifiedperiodshallnot
beentitledtohavehisnameenteredintheRegisteruntiltheexpiryofsuchperiod.

______________

CHAPTERIII

COUNCILOFINSTITUTE

9.ConstitutionoftheCouncil.__(1)ThereshallbeaCounciloftheInstituteforthemanagement
oftheaffairsoftheInstituteandfordischargingthefunctionsassignedtoitunderthisAct.

(2)TheFirstCouncilshallbecomposedofsuchofthemembersoftheCouncilofthedissolved
company as are entitled to have their names entered in the Register as fellows and every other
Councilshallbecomposedofthefollowingmembers,namely:

(a)thefirstPresidentofthedissolvedcompany

(b)notmorethaneightpersonselectedbymembersoftheInstitutefromamongstthefellows
oftheInstituteand

(c)notmorethanfourpersonsnominatedbythe2[FederalGovernment].

1 ThewordstransportationoromittedbytheCostandIndustrialAccountants(Amdt.)Act,1976,(70of1976),s,9.
2 Subs.byF.A.O.,1975,Art,2andTable,forCentralGovernment.

Page 8 of 23
 10.ElectionoftheCouncil.__(1)ElectionofthemembersoftheCouncilmentionedinclause(b)
of subsection (2) of section 9 shall be held at the annual general meeting of the Institute in such
mannerasmaybeprescribed.

(2)Whereanydisputearisesregardinganysuchelection,itshallbereferredbytheCounciltoa
Tribunal appointed by the 1[Federal Government] in this behalf and the decision of such Tribunal
shallbefinal:

ProvidedthatnosuchreferenceshallbemadeexceptonanapplicationmadetotheCouncilbyan
aggrievedpartysupportedbyatleastfivemembersoftheInstitutewhohadattendedtheelection,
withinthirtydaysfromthedateofthedeclarationoftheresultoftheelection.

(3)TheexpensesoftheTribunalshallbebornebytheInstituteorbytheaggrievedpartyasmay
beorderedbytheTribunal.

(4)IfthemembersoftheInstitutefailtoelectanyofthemembersoftheCouncilmentionedin
clause(b)ofsubsection(2)ofsection9,the 1[FederalGovernment]maynominateanypersonduly
qualifiedforthepurposetofillthevacancy,andthepersonsonominatedshallbedeemedtohave
beendulyelectedunderthatclause.

11. President, VicePresident, Secretary and Treasurer.__(1)The Council shall, at its first
meetingelectfromamongstitsmembersthefollowinghonoraryofficebearers,namely:__

(a)aPresident

(b)aVicePresident

(c)aSecretaryand

(d)aTreasurer.

(2) If the Council fails to elect any of the honorary office bearers within one month of the
election of its members mentioned in clause (b) of subsection (2) of section 9, the 1[Federal
Government]mayappoint,fromamongstthemembersoftheCouncil,anypersondulyqualifiedfor
the purpose to fill the vacancy, and the person so appointed shall be deemed to have been duly
electedbytheCouncilonthedateofsuchappointment

(3)ThePresidentshallbethechiefexecutiveauthorityoftheCouncil.

1 Subs.byF.A.O.,1975,Art.2andTable,forCentralGovernment.

Page 9 of 23
 (4) Save as provided in subsection (5), the President and other office bearers shall, subject to
their continuance as members of the Council, hold their respective offices from the date on which
theyareelectedordeemedtohavebeenelecteduntiltheexpiryofthedurationoftheCouncil.

(5) Notwithstanding the expiry of their term of office under subsection (4), the President and
otherofficebearersshallcontinuetoperformtheirfunctionsuntiltheirsuccessorsareelectedbythe
newCouncil.

(6) Where the President or any other office bearer resigns from his office or ceases to be a
memberoftheCouncil,theCouncilshallelectfromamongstitsmembersanewPresidentorother
officebearer,asthecasemaybe.

(7)IftheCouncilfailstoelectanewPresidentorofficebearerasprovidedinsubsection(6),
the1[FederalGovernment]mayappoint,fromamongstthemembersoftheCouncil,anypersontofill
thevacancy,andthepersonsoappointedshallbedeemedtohavebeendulyelectedbytheCouncil
onthedateofsuchappointment.

12.Resignationofmembershipandcasualvacancies.__(1)AnymemberoftheCouncilmayat
anytimeresignhismembershipbywritingunderhishandaddressedtothePresident,andtheseatof
suchmembershallbecomevacantwhensuchresignationisnotifiedintheofficialGazette.

(2)AmemberoftheCouncilshallbedeemedtohavevacatedhisseatifheisdeclaredbythe
Council to have been absent without sufficient excuse from three consecutive meetings of the
Council,orifhisnameis,foranycause,removefromtheRegisterundertheprovisionsofsection20.

(3) A casual vacancy in the Council may be filled by nomination by the 1[Federal
Government,]andthepersonnominatedtofillthevacancyshallholdofficeuntiltheexpiryofthe
durationoftheCouncil.

(4)NoactdonebytheCouncilshallbecalledinquestiononthegroundmerelyoftheexistence
ofanyvacancyin,ordefectintheconstitutionoftheCouncil.

13. Duration and dissolution of Council.__(1)The duration of a Council shall be three years
from the date of its first meeting on the expiry of which a new Council shall be constituted in
accordancewiththeprovisionsofthisAct.

(2)ACouncilshall,notwithstandingtheexpiryofitsdurationundersubsection(1)continueto
perform its function until a new Council is constituted whereupon the Council so functioning shall
standdissolved.

1 Subs.byF.A.O.,1975,Art.2andTable,forCentralGovernment.

Page 10 of 23
 14. Functions of the Council.__(1)The Council shall exercise such powers and perform such
functionsasmaybenecessarytocarryoutthepurposeofthisAct.

(2) In particular, and without prejudice to the generality of the foregoing provision, the powers
andfunctionsoftheCouncilshallinclude__

(a)theexaminationofcandidatesformembershipoftheInstituteandtheprescribingoffees
forsuchexamination

(b)theregistrationandtrainingofstudents

(c)theprescribingofqualificationsforentryofpersonsasmembersoftheInstitute

(d) the recognition of foreign qualifications and training or experience for purposes of
membershipoftheInstitute

(e)therefusal,grantingandcancellationofcertificatesofpractice

(f)themaintenanceoftheRegisterandpublicationofthelistofmembersoftheInstituteand
alsothenamesofthememberswhoholdcertificatesofpractice

(g)thelevyandcollectionoffeesfrommembers,students,examineesandotherpersons

(h)theremovalofnamesfromtheRegisterandrestorationtotheRegisterofnameswhich
havebeenremoved

(i)theregulationandmaintenanceofthestatusandstandardofprofessionalqualificationsof
themembersoftheInstitute

(j)thecarryingout,byfinancialassistancetopersonsotherthanmembersoftheCouncilor
inanyothermanner,ofresearchincostand1[management]accounting

(k)themaintenanceoflibrariesandpublicationofbooksandperiodicalsrelatingtocostand
1[management]accountingandalliedsubjects

(l)theexerciseofsuchdisciplinarypowersoverthemembersandservantsoftheInstituteas
maybeprescribedand

(m) the exercise of such other powers and the performance of such other functions as are
required to be, or may be, exercised or performed by the Council under this Act or
regulationsmadethereunder.

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976)s.10forindustrial.

Page 11 of 23
 15.Staffremunerationandallowances.__(1)Fortheefficientperformanceofitsfunctions,the
Councilmay__

(a)appointsuchofficersandservantsasitmayconsidernecessary

(b)requireandtakefromemployeesoftheInstitutesuchsecurityforthedueperformanceof
theirdutiesasitmayconsidernecessary

(c)fixthesalaries,fees,allowancesandotherconditionsofserviceoftheemployeesofthe
Instituteand

(d) with the previous sanction of the 1[Federal Government,] fix the allowances of the
President, the VicePresident, the Secretary, the Treasurer and other members of the
CouncilanditsCommittees.

16. Committees of the Council.__(1)The Council shall constitute the following Standing
Committees,namely:

(a)anExecutiveCommittee

(b)anEducationCommittee

(c)anExaminationCommitteeand

(d)aDisciplinaryCommittee.

(2)TheCouncilmayalsoconstitutesuchotherCommitteesasitdeemsnecessaryforthepurpose
ofcarryingouttheprovisionsofthisAct.

(3) The executive Committee shall consist of the President, the VicePresident and three other
membersnominatedbytheCouncilfromamongstitsmembers.

(4)TheEducationCommitteeshallconsistofthePresidentandsuchothermembersnominated
bytheCouncilfromamongstitsmembersasmaybeprescribed.

(5) The Examination Committee shall consist of the President, or the VicePresident, as the
Councilmaydecide,andsuchothermembers,nominatedbytheCouncilfromamongstitsmembers
asmaybeprescribed.

1 Subs.byF.A.O.,1975,Art.2andTableforCentralGovernment.

Page 12 of 23
 (6) The Disciplinary Committee shall consist of the President and two other members of the
Council, one of whom shall be nominated by the 1[Federal Government] and the other by the
Council.

(7)EveryotherCommitteeshallconsistofsuchmembersastheCouncilmaydecide.

(8)ThePresidentshallbetheChairmanofeveryCommitteeofwhichheisamember,andinhis
absence,theVicePresident,ifheisamemberoftheCommittee,shallbetheChairman.

(9) The Standing Committees shall perform such functions as may be prescribed and the other
Committees,shallperformsuchfunctionsastheCouncilmaydirect.

17. Branch Councils.__(1)For the purpose of advising and assisting it in the discharge of its
functions, the Council may constitute one or more Branch Councils as and when it considers
necessary.

(2)ABranchCouncilshallbeconstitutedinsuchmannerandperformsuchfunctionsasmaybe
prescribed.

(3)TheCouncilmay,atanytime,dissolveanyBranchCouncilconstitutedundersubsection(1).

18.FinancesoftheCouncil.__(1)Thereshallbeestablishedafundunderthemanagementand
controloftheCouncilintowhichshallbepaidallmoneysreceivedbytheCouncilandoutofwhich
shallbemetallexpensesandliabilitiesproperlyincurredbytheCouncil.

(2)TheCouncilmayinvestanymoneyforthetimebeingstandingtothecreditofthefundinany
GovernmentsecurityorinanyothersecurityapprovedbytheCouncil.

(3) The Council shall cause maintenance of proper accounts of the funds distinguishing capital
fromrevenue.

(4)TheannualaccountsoftheInstituteshallbesubjecttoauditbycharteredaccountantwithin
themeaningoftheCharteredAccountantsOrdinance,1961(Xof1961):

ProvidedthatnomemberoftheCouncilorpersonwhoisinpartnershipwithsuchmembershall
beeligibleforappointmentasanauditorunderthissubsection.

1 Subs.byF.A.O.,1975,Art.2andTableforCentralGovernment.

Page 13 of 23
 (5)Assoonasmaybepracticableafterthecloseofeachyear,butnotlaterthanthethirtiethday
ofNovembernextfollowing,theCouncilshallcausetobepublishedacopyoftheauditedaccounts
and the Report of the Council for that year and copies of the said accounts and Report shall be
forwardedtothe1[FederalGovernment]andtoallthemembersoftheInstitute.

(6)TheCouncilmayborrowfromascheduledbankasdefinedintheStateBankofPakistanAct,
1956,(XXXIIIof1956)orfromthe1[FederalGovernment]:

(a)anymoneyrequiredformeetingitsliabilityoncapitalaccountonthesecurityofthefunds
oronthesecurityofanyotherassetsforthetimebeingbelongingtoitor

(b) for the purpose of meeting current liabilities by way of temporary loans or overdraft
pendingthereceiptofincome.

________

CHAPTERIV

REGISTEROFMEMBERS

19.Register.__(1)TheCouncilshallmaintainintheprescribedmanneraRegisterofthemembers
oftheInstitute.

(2) The Register shall include the following particulars about every member of the Institute,
namely:

(a)hisfullname,dateofbirth,domicile,residentialandprofessionaladdresses

(b)thedateonwhichhisnameisenteredintheRegister

(c)hisqualifications

(d)whetherheholdsacertificateofpracticeand

(e)suchotherparticularsasmaybeprescribed.

(3) The Council shall cause to be published in such manner as may be prescribed a list of
membersoftheInstituteasonthefirstdayofJulyofeachyear,andacopyofthelistshallbesentto
everymemberoftheInstitute.

1 Subs.byF.A.O.,1975,Act.2andTableforCentralGovernment.

Page 14 of 23
 (4) Every member of the Institute shall, on his name being entered in the Register, pay such
annualmembershipfeeasmaybeprescribedanddifferentfeesmaybeprescribedforassociatesand
forfellows.

20.RemovalofnamefromtheRegister.__(1) The Council may remove from the Register the

nameofanymemberoftheInstitute:

(a)whoisdeador

(b)fromwhomarequesthasbeenreceivedtothateffector

(c)whohasnotpaidanyprescribedfeepayablebyhimor

(d)whoisfoundtohavebeensubject,atthetimewhenhisnamewasenteredintheRegister,
orwho,atanytimethereafter,hasbecomesubject,toanyofthedisabilitiesmentionedin
section8,orwho,foranyotherreason,hasceasedtobeentitledtohavehisnameborne
ontheRegister.

(2)TheCouncilshallremovefromtheRegisterthenameofanymemberwhoisnotentitledto
remainamemberunderthisAct.

1[(3)BeforeremovingfromtheRegisterthenameofanymemberunderclause(c)orclause(d)of
subsection(1)orsubsection(2),theCouncilshallaffordhimanopportunityofbeingheard.]

_______

CHAPTERV

PENALTIES

21. Penalty for falsely claiming to be a member, etc.A person shall, without prejudice to his
liabilitytoanydisciplinarymeasureprescribedundersection34,bepunishable,onfirstconviction,
with fine which may extend to one thousand rupees, and, on any subsequent conviction, with
imprisonment which may extend to six months, or with fine which may extend to five thousand
rupees,orwithbothifhe__

(1)notbeingamemberoftheInstitute,representsthatheisamemberoftheInstitute,oruses
thedesignationofCostand2[ManagementAccountantorthelettersA.C.M.A.,F.C.M.A.]or

1 AddedbytheCostandManagementAccountants(Amdt.)Ordinance,1984,(2of1984),s.2.
2 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976),s.11,forIndustrialAccountantorlettersA.P.I.A.,F.P.I.A.

Page 15 of 23
 (2)beingamemberoftheInstitutebutnothavingacertificateofpractice,representsthatheisin
practiceorpracticesas 1[acostandmanagementaccountant],costaccountantorworksaccountant
orinsomesimilarprofessioninthefieldofcostand2[managementaccounting].

22.PenaltyforusingthenameoftheCounciletc.__(1)SaveasotherwiseprovidedinthisAct,
nopersonshall__

(a)useanynameorcommonsealwhichisidenticalwiththenameorthecommonsealofthe
Instituteorsonearlyresemblesitastodeceiveorasbelikelytodeceivethepublicor

(b)grantorconferanydegree,diploma,certificateordesignationwhichindicatesorpurports
to indicate the possession or attainment of any qualification or competence in cost and
3[management]accountingsimilartothatofamemberoftheInstitute.

(2) Any person contravening the provisions of subsection (1) shall, without prejudice to any
otherproceedingswhichmaybetakenagainsthim,bepunishable,onfirstconviction,withfinewhich
may extend to one thousand rupees, and, on any subsequent conviction, with imprisonment which
mayextendtosixmonthsorwithfinewhichmayextendtofivethousandrupeesorwithboth.

(3)NothingcontainedinthissectionshallapplytoanyUniversityestablishedbylawortoany
institutionaffiliatedthereto.

(4)Ifthe 4[FederalGovernment]issatisfiedthatanydiploma,certificateordesignationgranted
or conferred by any person other than the Institute, which purports to be a qualification in cost or
3[management]accountingbutwhich,intheopinionofthe 4[FederalGovernment]fallsshortofthe

standard of qualifications prescribed for cost or 3[management] accountants and does not in fact
indicate or purport to indicate the possession or attainment of any qualifications or competence in
costor3[management]accountingsimilartothatofamemberoftheInstitute,itmay,bynotification
in official Gazette and subject to such conditions as it may think fit to impose, declare that this
sectionshallnotapplytosuchdiploma,certificateordesignation.

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976),s.11,foranindustrialaccountant.
2 Subs.ibid,forindustrialaccounting.
3 Subs.ibid.,s.12,forindustrial.
4 Subs.byF.A.O.,1975,Art.2andTable,forCentralGovernment.

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 23.Companiesnottoengagein 1[costandmanagementaccountancy]inPakistan.__(1) No
company, whether incorporated in Pakistan or elsewhere, shall practice as cost or 2[management]
accountantsinPakistan.

(2)Ifanycompanycontravenestheprovisionsofsubsection(1)then,withoutprejudicetoanyother
proceedingswhichmaybetakenagainstthecompany,everydirector,manager,secretaryandother
officerofsuchcompany,whoisknowinglyapartytosuchcontravention,shallbepunishablewith
finewhichmayextend,onfirstconviction,toonethousandrupeesand,onanysubsequent
conviction,tofivethousandrupees.

24. Unqualified persons not to sign documents.__(1) No person, other than a member of the
Institute, shall sign any document on behalf of 3[a cost and management accountant] or a firm of
4[costandmanagementaccountants]inhisoritsprofessionalcapacity.

(2)Anypersoncontraveningtheprovisionsofsubsection(1)shallbepunishablewithfinewhich
may extend, on first conviction, to one thousand rupees and, on any subsequent conviction to five
thousandrupees.

25. Offences by companies.__(1)If the person committing an offence under this Act is a
company,thecompanyaswellaseverypersoninchargeof,andresponsibleto,thecompanyforthe
conductofitsbusinessatthetimeofthecommissionoftheoffenceshallbedeemedtobeguiltyof
theoffenceandshallbeliabletobeproceededagainstandpunishedaccordingly:

Provided that nothing contained in this subsection shall render any such person liable to any
punishmentifheprovesthattheoffencewascommittedwithouthisknowledgeorthatheexercised
allduediligencetopreventthecommissionofsuchoffence.

(2)Notwithstandinganythingcontainedinsubsection(1),whereanoffenceunderthisActhas
beencommittedbyacompanyanditisprovedthattheoffencehasbeencommittedwiththeconsent
orconnivanceof,orthatthecommissionoftheoffenceisattributabletoanyneglectonthepartof,
anydirector,manager,secretaryorotherofficerofthecompany,suchdirector,manager,secretaryor
other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded
againstandpunishedaccordingly.

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976),s.13,forindustrialaccountancy.
2 Subs.ibid.,forindustrial.
3 Subs.ibid.,s.14,foranindustrialaccountant.
4 Subs.ibid.,forindustrialaccountants.

Page 17 of 23
 ExplanationForthepurposeofthissection__

(a) company with respect to an offence under section 21 or section 24, means any body
corporateandincludesafirmorotherassociationofindividualsand,withrespecttoan
offenceundersection23,abodycorporateand

(b)directorinrelationtoafirmmeansapartnerinthefirm.

26.Sanctiontoprosecute.NopersonshallbeprosecutedunderthisActexceptonacomplaint
madebyorundertheorderoftheCouncilorofthe1[FederalGovernment].

__________

CHAPTERVI

DISSOLUTIONOFTHEEXISTINGINSTITUTEOFINDUSTRIALACCOUNTANTS.

27.DissolutionoftheInstituteregisteredunderActVIIof1913.Onthecommencementofthis
Act,__

(1)thecompanyregisteredundertheCompaniesAct,1913as,thePakistanInstituteofIndustrial
Accountants shall stand dissolved and thereafter no person shall make, asset or take any claims,
demandsorproceedingsagainstthedissolvedcompanyoragainstanyofficerthereofinhiscapacity
assuchofficer,exceptinsofarasmaybenecessaryforenforcingtheprovisionsofthisAct

(2)therightofeverymembertoorinrespectofthedissolvedcompanyshallbeextinguished,and
thereafter no member of that company shall make, assert or take any claims or demands or
proceedingsinrespectofthatcompanyexceptasprovidedinthisAct.

28. Assets and liabilities of the dissolved company.__(1) On the commencement of this Act,
there shall be transferred to and vested in the Institute all the assets and liabilities of the dissolved
company.

(2)Theassetsofthedissolvedcompanyshallbedeemedtoincludeallrightsandpowers,andall
property,whethermoveable,orimmoveable,ofthecompany,including,inparticular,cashbalance,
reservefunds,investmentdepositsandallotherinterestsandrightsinorarisingoutofsuchproperty
asmaybeinthepossessionofthedissolvedcompanyandallbooksofaccountsordocuments,ofthe
dissolvedcompany,andtheliabilitiesofthedissolvedcompanyshallbedeemedtoincludealldebts,
liabilities and obligations of whatever kind of that company existing immediately before the
commencementofthisAct.

1 Subs.byF.A.O..,1975,Art.2andTable,forCentralGovernment.

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 (3)Allcontracts,debts,bonds,agreementsandotherinstrumentsofwhatevernaturetowhichthe
dissolvedcompanyisaparty,subsistingorhavingeffectimmediatelybeforethecommencementof
thisAct,shallhavefullforceandeffectagainstorinfavouroftheInstitute,asthecasemaybe,and
may be enforced as fully and effectively as if, instead of the dissolved company, the Institute had
beenapartythereto.

(4) If, on the commencement of this Act, any suit, appeal or other legal proceedings of
whatsoever nature by or against the dissolved company is pending the same shall not abate, be
discontinuedorbeinanywayprejudiciallyaffected,byreasonofthetransfertotheInstituteofthe
assets and liabilities of the dissolved company or of anything contained in this Act, but the suit,
appealorotherproceedingsmaybecontinued,prosecutedandenforcedbyoragainsttheInstitute,in
thesamemannerandtothesameextentasitwouldhavebeencontinued,prosecutedandenforced
byoragainstthedissolvedcompanyifthisActhadnotbeenpassed.

29. Employees of the dissolved Company.__(1)Every person employed in dissolved company

immediately before the commencement of this Act shall, as from such commencement become an
employee of the Institute and shall hold his office or service therein upon the same terms and
conditions,andwiththesamerightsandprivilegeastopensionandgratuity,aswouldhaveappliedto
himinhisofficeorserviceunderthedissolvedcompanyifthisActhadnotbeenpassed,andshall
continue to do so until his employment in the Institute is terminated or his remuneration or other
termsandconditionsofemploymentaredulyalteredbytheInstitute.

(2)Notwithstandinganythingcontainedinanylawfortimebeinginforce,orinanycontract,the
transferoftheservicesofanyemployeeofthedissolvedcompanytotheInstituteshallnotentitleany
such employee to any compensation under such law or contract and no such claim shall be
entertainedbyanycourt,tribunalorauthority.

__________

CHAPTERVII

MISCELLANEOUS

30. Alteration in the Register and cancellation of certificate.__(1)Where an order is made

underthisActreprimandingamemberoftheInstitute,arecordofthepunishmentshallbeentered
againsthisnameintheRegister.

(2)Wherethenameofany,memberisremovedfromtheRegister,thecertificateofmembership
andthecertificateofpractice,ifanygrantedtohimshallberecalledandcancelled.

31.Protectionofactiontakeningoodfaith.Nosuit,prosecutionorotherlegalproceedingsshall
lie against the 1[Federal Government] or the Council in respect of anything which is in good faith
doneorintendedtobedoneinpursuanceofthisActorofanyregulationorordermadethereunder.

1 Subs.byF.A.O.,1975,Art.2andTable,forCentralGovernment.

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 32.Maintenanceofbranchoffices.__(1)Where1[costandmanagementaccountant]orafirmof
2[costandmanagementaccountants]hasmorethanoneofficesinPakistaneachoneofsuchoffice
shallbeintheseparatechargeofamemberoftheInstitute:

ProvidedthattheCouncilmayinsuitablecasesexemptany 3[costandmanagementaccountant]
orafirmof2[costandmanagementaccountants]fromtheoperationofthissubsection.

(2)Every3[costandmanagementaccountant]inpracticeorfirmofsuchaccountantsmaintaining
morethanoneofficesshallsendtotheCouncilalistofofficestogetherwiththenamesofthepersons
inchargethereofandshallkeeptheCouncilinformedofanychangeinrelationthereto.

33.Reciprocity.__(1)Whereanycountryspecifiedbythe 4[FederalGovernment]inthisbehalf,
bynotificationintheofficialGazette,preventspersonsofPakistandomicilefrombecomingmembers
ofanyinstitutesimilartotheInstitute,orfrompracticingtheprofessionofcostand 5[management]
Accountingorsubjectsthemtounfairdiscriminationinthatcountry,nocitizenofthatcountryshall
be entitled to be a member of the Institute or practice the profession of cost and 5[management]
accountinginPakistan.

(2)Subjecttotheprovisionsofsubsection(1),theCouncilmayprescribetheconditions,ifany,
subject to which foreign qualifications relating to cost and 5[management] accounting shall be
recognisedforthepurposeofentryintheRegister.

34. Power to make regulations.__(1)The council may, by notification in the official Gazette,
makeregulationsforcarryingoutthepurposesofthisAct.

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act.1976(70of1976)s.15foranindustrialaccountant.
2 Subs.ibid.,for"industrialaccountants.
3 Subs.ibid.forIndustrialaccount.
4 Subs.byF.A.O.,1975,Art.2andTable,for"CentralGovernment".
5 Subs.ibid.s.16forIndustrial.

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 (2)Inparticular,andwithoutprejudicetothegeneralityoftheforegoingpowers,suchregulations
mayprovideforalloranyofthefollowingmatters,namely:

(a)thestandardandconductofexaminationsunderthisAct

(b)thequalificationsforentryofthenameofanypersonintheRegisterasamemberofthe
Institute

(c)thequalificationforthepurposeofsubsection(4)ofsection5

(d)theconditionsunderwhichanyexaminationortrainingmaybetreatedasequivalentto
theexaminationortrainingprescribedformembershipoftheInstitute

(e)theconditionsunderwhichanyforeignqualificationmayberecognised

(f) the manner in which and the conditions subject to which applications for entry in the
Registermaybemade

(g) the fees payable for membership of the Institute and the annual fees payable for
certificatesofpractice

(h)themannerinwhichelectiontotheCouncilandtheBranchCouncilsmaybeheld

(i)theparticularstobeenteredintheRegister

(j)thefunctionsofBranchCouncils

(k)theregulationsandmaintenanceofthestatusandstandardofprofessionalqualifications
ofmembersoftheInstitute

(l)thecarryingoutofresearchincostand1[management]accounting

(m)themaintenanceoflibrariesandpublicationofbooksandperiodicalsrelatingtocostand
1[management]accountingandalliedsubjects

(n) the management of the property of the Institute and the maintenance and audit of its
accounts

(o)thesummoningandholdingofmeetingsoftheCouncilandcommitteesthereof,thetimes
and places of such meetings ,the procedure to be followed thereat and the number of
membersnecessarytoformaquorum

(p) recording and certifying minutes of meetings of the Council and the annual general
meetingsandextraordinarymeetings

1 Subs.bytheCostandIndustrialAccountants(Amdt.)Act,1976(70of1976),s.17,forindustrial.

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 (q)appointmentandremovalofauditorsoftheInstitute

(r)themannerinwhichtheannuallistofmembersoftheInstituteshallbepublished

(s)thepower,dutiesandfunctionsofthePresidentandVicePresident

(t)thefunctionsoftheStandingCommitteesandotherCommitteesandtheconditionssubject
towhichsuchfunctionsshallbedischarged

(u)thetermsofoffice,andthepowers,dutiesandfunctionsoftheSecretary,Treasurer,andthe
otheremployeesoftheCouncil

(v)rulesofprofessionalandotherconductandtheexerciseofdisciplinarypowersinrelation
thereto

(w)thetermsandconditionsofserviceoftheemployeesoftheInstituteincludingpersonswho
havebecomeitsemployeesundersection29

(x)theregistrationofstudentsandthefeestobechargedforsuchregistrationand

(y)anyothermatterwhichisrequiredtobeormaybeprescribedunderthisAct.

(3) All Regulations made by the Council under this Act shall be subject to the condition of
previouspublicationandtotheapprovalofthe1[FederalGovernment].

(4)TheCouncilshall,assoonaspracticable,sendacopyofanyRegulationmadebyittoevery
memberoftheInstitute.

(5)Notwithstandinganythingcontainedinthissection,the1[FederalGovernment]maymakethe
first 2regulations of the Council and such regulations shall be deemed to have been made by the
Councilandshallhaveeffectaccordingly.

35. Power to give directions for making regulations, etc.__(1)Where the 1[Federal
Government]considersitexpedientsotodo,itmay,byorderinwriting,directtheCounciltomake
any regulation, or to amend or rescind any regulation already made, within such period as it may
specifyinthisbehalf.

(2)IftheCouncilfailsorneglectstocomplywithsuchdirectionwithinthespecifiedperiod,the
1[FederalGovernment]maymakeoramend,withorwithoutmodifications,orrescind,anyregulation
directedtobemade,amendedorrescindedandanyregulationsomade,amendedorrescindedbythe
1[Federal Government] shall be deemed to have been made, amended or rescinded by the Council
andshallhaveeffectaccordingly.

_____

1 Subs.byF.A.O.,1975,Art.2andTable,forCentralGovernment.
2 ForsuchRegulations,seeGaz.ofP.,1966,Ext.p.559.

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