Issuing Compliance
Certificate by Company Secretary without verifying Relevant Statutory Records
of Company amount ‘Misconduct’
PROFESSIONAL MISCONDUCT BY A PRACTICING COMPANY SECRETARY
The disciplinary committee of the institute of Company
Secretaries of India ( ICSI ) has found a company secretary guilty of
‘Professional Misconduct’ as he issued Compliance Certificate without verifying
the relevant statutory records of the Company. A complaint was filed against the
respondent for not exercise due diligence and was grossly negligent in the
conduct of his professional duties while issuing Compliance Certificate to M/s.
City Limouzines (India) Ltd., for the Financial Year ending March, 2005 as he
has issued the same without verifying the relevant statutory records of the
Company.
ISSUING A CERTIFICATE WITHOUT VERIFYING STATUTORY RECORDS
All the companies keep the records at the Registered office of
the company. The respondent also admitted this fact and said that not visited
the office of the City group companies but has relied merely on the
instructions of one Shri Kaiser Baig rather than verifying the records himself
at the office of the company.
REQUEST YOU TO VOTE FOR A NEW FACE TO CENTRAL COUNCIL FROM SIRC
A PCS MUST BE MORE DUTY CONCISIOUS WHILE CERTIIFYING
While holding the respondent guilty, the disciplinary committee
held that “Moreover, circumstances and inexperience in any work field neither
entitle a professional to commit misconduct nor it exonerate him/her from the
misconduct committed, therefore the plea of the Respondent that he was new to
the profession does not hold waters. The Respondent is a company law
professional and is better equipped with the understanding about the difference
between redeemable preference shares and deposits. The point in case of M/s.
City Limouzine group is that the companies invited deposits and issued
redeemable preference shares to the gullible investors.”
OPPORTUNITY TO PRESENT HIS ARGUMENT
The disciplinary committee provided another opportunity to hear
the respondent after finding him guilty of misconduct. However, the Notice sent
via speed post to the Respondent was received back undelivered in the
Institute.
FINE OF RS 50.000/= & SUSPENSION OF MEMBERSHIP FOR 2 MONTHS
After granting several adjournments, the disciplinary committee
passed an order imposing a Fine of Rs. 50,000/- and removal of his name from
the register for a period of sixty days.
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