The passage of ‘The Companies Bill, 2012’ in the Upper House without any amendments has met with positive reviews across the industry and accounting circles. Industry stalwarts and Partners from Big 4s (EY,PWC,KPMG and Delloite) have hailed this Bill as Progressive and in sync with the requirements of the present day practices and technology. The Bill seeks to increase transparency, women representation in a corporate organization and also makes mandatory provisions for Corporate Social Responsibility.
Disappointment among CA student Faternity
Though the newly passed Bill has brought cheer to the Industry and the practitioners of Company Law, it has resulted in vehement protests oddly from the Chartered Accountant Student fraternity appearing for November, 2013 examinations. The student community has demanded that with the passage of the Companies Bill, the earlier Companies Act, 1956 has become redundant and hence should be abolished and not tested for the forthcoming examinations in November, 2013. “Students are actually demanding that they should be granted a uniform exemption for the Corporate and Allied Laws Paper”, said Sachin Saraf, a faculty for Law in New Delhi.
Email correspondences with The Institute of Chartered Accountants of India (ICAI) representatives have remained unanswered. The Faking News team made enquiries from several Chartered Accountants and former members in various boards of The ICAI, whether an Entire Paper could be exempted for students appearing in the forthcoming examinations. “The ICAI should have been ready for such a situation prior to this incident. I believe they were of the opinion that the Opposition would have continued to stall the parliament over the Telengana issue and the Defense Minister A.K. Anthony’s statements.”
Differences between ICAI Members and CA students
The reactions of students and CAs vary on the issue. “In the wake of the passage of the New Bill, the entire Companies Act, 1956 has become redundant and studying it would seem like studying History”, remarked Harsh Gandhi a student from Ahmedabad. However Mr. Prakash Aggarwal a practicing CA and a former paper setter for Law from Jaipur believes that the Companies Act was a rich legacy and should also be included in the syllabus along with the New Companies Bill,2012 in following examinations.
“It took take them 8 months to get a nod from the Rajya Sabha after it was passed in the Lok Sabha. I guess the ICAI can pray, it takes the President Mr. Pranab Mukherjee more than 2 months to sign the New Bill to help them overcome this limbo”, said Mr. Bala Natarajan, an auditor from Chennai.
Last year, The ICAI had deleted certain portions in Indirect Tax with the introduction of Negative List in Service Tax; however students feel that hoping for deletion of an entire Act for the examination would be too ambitious. Meanwhile the students are keenly awaiting a response from the ICAI on the issue with a prayer on their lips.