A BILL FOR. Sponsored by SENATOR F. K. BAJOMO (Ogun West Senatorial District)

Transcription

1 [SB. 105] A BILL C2353 FOR AN ACT TO AMEND THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA ACT 1965 AND FOR MATTERS CONNECTED THEREWITH Sponsored by SENATOR F. K. BAJOMO (Ogun West Senatorial District) [ ] Commenceinert. BE IT ENACTED by the National Assembly of the Federal Republic of Nigeria as follows The Institute of Chartered Accountants of Nigeria Act (in this Act of ICAN Act 2 referred to as 'the Principal Act"' is amended as set out in this Act. No. 15 of Section 1 of the principal Act is amended by inserting a new subsection insertion of 4 (d) that is 5 "(d) Setting and issuing Standards on Auditing for its members, reviewing 6 them from time to time and monitoring compliance therewith". subsection 1 (d) Section 2 of the Principal Act is amended thereof by inserting the insertion of 8 following new Heading, that is 9 "ELECTION OF PRESIDENT, VICE PRESIDENT, 1 ST DEPUTY VICE 10 PRESIDENT AND 2 ND DEPUTY VICE PRESIDENT" Section 2 (1) of the principal Act is amended by substituting therefore 12 the following lie following new subsections that is 13 (1) There shall be a President, a Vice President, a l st Deputy Vice President, 14 a 2 nd Deputy Vice President and an Honorary Treasurer of the Institute, who 15 shall be elected by the Council under this Act and hold office each for a 16 term of one year from the date of election. 17 (2) The President shall be Chairman at meetings of the Institute, so however 18 that in the event of the death, incapacity or inability for any reason of the 19 President to act, the Vice-President shall act in his stead for the un-expired of section 2.

2 C No. Institute of Chartered Accountants of Nigeria {) of section 2 (2). Creation of new subsection (5). of section 3. Creation of the ECC portion of the term of office, or as the case may require, and references in this Act to the President shall be construed accordingly." 5. Section 2 (2) of the Principal Act is amended by renumbering the existing subsection (2) as subsection (3) accordingly. 6. Section 2 of the Principal Act is amended by inserting thereof the following new subsection and renumbering it as section 2 (4) that is "If any office holder ceases to be a member of the Institute, he shall cease to hold any office of the Institute". 7. Section 2 of the Principal Act is further amended by creating the following new subsection (5), mat is "(5) Without prejudice to paragraph 1 (4) of the First Schedule to this Act, The tenure of the Immediate Past President shall be one year from the date he ceases to hold office as president, and he shall not be eligible for reelection into the Council at the expiration of his tenure." 8. Section 3 of the principal Act is amended by substituting therefore the following new Section that is 3. (1) "There shall be a governing body of the Institute to be known as the Council charged with the administration and general management of the Institute. (2) The Council shall consist of Thirty-Five members being Fellows or Associates as follows: (a) Two members to be appointed by the Minister, each of whom shall be a Chartered Accountant; (b) Four members appointed by the Council on the basis of national geographical spread; (c) The President, the Vice President, the first deputy Vice President, the 2 nd Deputy Vice President and the immediate Past President; (d) Twenty-four members elected by members of the Institute of whom thirteen shall be members in practice as Accountants and eleven not in practice. (3) The provisions of the First Schedule to this Act shall have effect with

3 Institute of Chartered Accountants of Nigeria () 2008 No. C respect to the qualifications and tenure of office of members of the Council 2 and other matters there mentioned. 3 (4) Regulations made by the Council may provide for increasing its 4 membership or altering its composition and make such amendments to 5 subsection (2) of this section and paragraph 1 of the First Schedule to this 6 Act subject to the approval of members of the Institute in a general meeting Section 3 of the Principal Act is further amended by creating a new 8 subsection (5) that is 9 Creation of (5) (a)"there shall be an Executive Coordinating the ECC. 10 Committee of the Council which shall consist of the following 11 officeholders: 12 (a) the President; 13 (b) the Vice President; 14 (c) the First Deputy Vice President; 15 (d) the Second Deputy Vice President; and 16 (e) the Immediate Past President". 17 (b) The Functions and the mode of operation of the ECC 18 shall be as prescribed by the Council. 19 (c) The quorum at meetings of the Committee shall be 20 four. 21 (d) The Decisions of the ECC shall be subject to ratification 22 by the Council Section 4 of the Principal Act is amended by inserting after subsection 24 (5) the following new subsections (6), (7), (8) (,9), and (10) that is 25 (6) The terms and conditions of service including 26 remuneration, allowances and benefits of employees of the 27 Institute shall be determined by the Council. of section Pension (7) Employees of the Institute shall be entitled to pensions, gratuities and other benefits as prescribed by the Pensions Reform 30 Act, (8) The Council shall pay such reasonable expenses of its

4 C No. Institute of Chartered Accountants of Nigeria () Insertion of new heading. of Section 6. Creation of Registrar/ Chief executive. of Section 7. 3 render services to the Institute. members, members of its committees and remuneration of any other person(s) whether member of the Institute or not, who (9) (a) The Council may create a Chartered Accountants 5 Benevolent and Educational Fund. (b) The fund shall be managed by a Board of Trustees and a Management Committee both to consist of members appointed by the Council. indigent or (c) The fund shall provide assistance to 10 distressed or ill or incapacitated members of the Institute. 11 (10) The Council may create other funds as it deems fit Section 6 of the Principal Act is amended by inserting a new heading 13 that is 14 REGISTRAR/CHIEF EXECUTIVE AND THE REGISTER Section 6 of the Principal Act is further amended by substituting 16 Appointment 17 of Registrar/ 18 Chief Executive, 19 etc. and preparation of 20 the registrar subsection (1) with the following new subsection that is (1) There shall be for the Institute a Registrar/Chief Executive who shall be a member of the Institute, appointed by the Council on such terms and conditions as may be determined by the Council And inserting a new subsection (2) and renumbering the remaining subsections accordingly. (2) The Council shall appoint for the Institute such other 24 staff, as it may deem necessary Section 6 of the Principal Act is further amended by substituting the 29 new subsection (d) that is 30 (d) to create and maintain a Register of Members Firms. 26 word Registrar with the word Registrar/Chief Executive wherever same appears 27 in this Act Section 7 (1) of the Principal Act is amended by inserting the following

5 Institute of Chartered Accountants of Nigeria () 2008 No. C Section 8 of the Principal Act is amended by inserting therefore the 2 following new heading: 3 REGISTRATION OF CHARTERED ACCOUNTANTS AND 4 CHARTERED ACCOUNTING FIRMS Section 8 of the Principal Act is further amended in subsection (3) (b) 6 by substituting thereof the following new subsection that is 7 (b) that he has attained the age of eighteen years Section 8 of the Principal Act is further amended by inserting therefore 9 a new subsection (7) that is 10 (7) All members in practice shall register their Firms with the Institute Section 11 of the Principal Act is amended 12 (a) in subsection (2) thereof by substituting therefore the following new 13 subsection. That is 14 The Tribunal shall consist of: 15 (a) The President and Vice President of the Institute who shall be the 16 Chairman and Vice Chairman of the Tribunal respectively, 17 (b) Six Council members, two Past Presidents and two Chartered 18 Accountants who are not-council members, all of whom shall be appointed 19 by the Council; and 20 (c) The quorum of the Tribunal shall be four, which shall include the 21 President and or the Vice President. 22 (b) In subsection (3) thereof by substituting thereof, the following new 23 subsection that is 24 (3) There shall be bodies to be known as the Accountants' Investigating 25 Panels (each herein referred to as the Panel) which shall be charged with 26 the duty of 27 (a) conducting an investigation into any case where it is alleged 28 that a member has infringed on the code of conduct for members or 29 should for any other reason be subject of proceedings before the Tribunal; 30 and 31 (c) In subsection (4) thereof by substituting therefore the following new of section 8. of section 11.

6 C No. Institute of Chartered Accountants of Nigeria () of section 12. of section 12 (1) (a). of Section 14 (1). 1 subsection that is 2 (a) Each Panel shall be appointed by the Council and shall consist of 3 six members of whom three shall be Council members. 4 (b) The Chairman of each Panel shall be a Council member. 5 (c) The quorum of each panel shall be three members one of whom 6 shall be a Council member Section 12 of the Principal Act is amended 8 (a) in Subsection (1) (a) by substituting therefore the following new 9 subsection that is 10 (1) Where: 11 (a) A member is judged by the Tribunal to be guilty of infamous conduct 12 in any professional respect, and or professional misconduct; or 13 (b) By substituting the proviso immediately after the existing subsection 14 (c) with the following new proviso that is 15 the Tribunal may, if it deems fit, give a direction reprimanding, 16 imposing a fine, and or suspending that person or firm or ordering the 17. Registrar to strike off the name of the person or firm from the relevant 18 register Section 14 of the Principal Act is Amended 20 (a) in section 14 (1) by substituting therefore the following new subsection 21 that is 22 (1) Subject to Section 15 of this Act and subsection (2) of this Section, 23 a person shall be deemed to practice as an accountant if, in consideration 24 of remuneration received or to be received, and whether by himself or in 25 partnership with any other person 26 (b) By inserting immediately after the existing subsection (1) (d) 27 the following new subsections (e) and (/) that is 28 (e) he renders any other service which may by regulations made 29 by the Council be designated as service constituting practice as an 30 Accountant; and 31 (f) he holds a current licence to practice

7 Institute of Chartered Accountants of Nigeria () 2008 No. C The principal Act is Amended by inserting immediately after the Insertion of 2 existing Section 14, a new Section 15 that is 4 Areas of Practice of a Chartered Accountant and creation 15. A Chartered Accountant shall hold himself out to practice as an Auditor, a Reporting Accountant, Financial 5 Accounting Services practitioner, Company Secretarial Services of a new g section 15. Practitioner, Enterprise wide risks services Practitioner, Tax 7 Practitioner, an Investigations and Forensic Accounting g Practitioner, an Information Technology Practitioner, an 9 Insolvency Practitioner, a Corporate and Public Finance 10 Practitioner, a Management Consultant, and such other ancillary 11 areas of Practice which may by Regulations made by the Council 12 subject to the approval of the National Assembly be designated 13 as services constituting the practice of a Chartered Accountant". senior Section 15 of the Principal Act is amended by renumbering same as of section Section 16 and inserting a new subsection (4) that is and renumbering 15 (4) the Council may organize, establish, finance and maintain a scheme, as section system or arrangements for practice assurance, consisting of the inspection, 18 monitoring and review of the professional and business efficiency and 19 competence of: 20 (a) any member or firm which is wholly or partly composed of members 21 engaged in practice; 22 (b) any member who holds a current practising licence Section 16 of the Principal Act is amended by renumbering same as 24 Section 17 and inserting the following new subsections (c) and (d) that is 25 (c) make grants to universities or other educational establishments, and 26 endow professorial chairs. 27 (d) publish or distribute books, manuals, pamphlets and journals relating 2g to the affairs of the Institute or promoting and furthering the interests, 29 usefulness and efficiency of members and others or of the accountancy 30 profession generally The Principal Act is amended further by renumbering the existing of section 16.

8 C No. Institute of Chartered Accountants of Nigeria () Insertion of 2 new section Establishment 4 of faculties Insertion of a new section 21. Establishment 13 of accounting technicians 14 scheme Insertion of 20 section Section 17 as Section 18, and the existing Section 18 as Section 19 respectively. new 25. The principal Act is amended by inserting immediately after the 3 section 19, a new section 20 that is 20. (1) The Institute shall establish Faculties for the purposes of specialization into various fields of accountancy. new (2) The Faculties of the Institute are as indicated in the Fourth Schedule to this Act, and as may by regulations made by Council be established from time to time as it deems fit. (3) The Council shall have powers to regulate, organize and reorganize the faculties as necessary from time to time. 26. The Principal Act is amended by inserting immediately after the section 20 a new Section 21 that is 21. (1) The Institute shall establish a scheme for the training and qualification of Accounting Technicians. (2) Persons qualified as Associates of the Scheme shall be authorized to use the designatory letters "AAT" for Associates of the Accounting Technicians Scheme or such other letters as the Institute may adopt. (3) The Council shall have powers to regulate the scheme as necessary from time to time as it deems fit The Principal Act is amended by inserting a new section 22 that is "22. The provisions of this Act supersedes the provisions of any other Act, which purports to diminish, undermine, subjugate or otherwise superintend over them. 28. Section 19 of the Principal Act is amended by renumbering it as 25 section 23 and substituting the existing interpretations with the following new 26 interpretations that is 27 Accountancy practice includes auditing, investigations and forensic 28 accountancy practice, Financial Accounting Services, Company Secretarial 29 Services, Enterprise wide risks services tax practice, consultancy practice, 30 insolvency including receivership and liquidation, financial advisory services, 31 management consultancy practice, information and communication technology

9 Institute of Chartered Accountants of Nigeria () 2008 No. C practice; 2 A Chartered Accountant includes an auditor, Reporting Accountant, 3 information technology practitioner, Tax Practitioner, insolvency practitioner;. 4 corporate and public finance Practitioner, a management consultant, 5 information and communications Practitioner. 6 Chartered Accountant means an accountant enrolled as a fellow or 7 associate member of this Institute; 8 Council under this Act means the Council established as the governing 9 body of the Institute under section 3 of this Act; 10 enrolled, in relation to a fellow or an associate, means registered in the 11 part of the register relating to fellows or associates as the case may be; 12 fees includes annual subscriptions; 13 Institute means the Institute of Chartered Accountants of Nigeria under 14 this Act; 15 Infamous conduct means any act or omission, which are inconsistent with 16 the code of conduct for members and or, which may be reasonably construed 17 to be shameful or disgraceful. 18 Members in practice include members of the Institute who engage in any 19 accountancy practice; 20 Members not in practice are members who are in employment either in 21 companies, corporations, industries, government establishments, Firms and 22 other pro lit or non profit organizations; 23 Minister means the Minister of the Government of the Federation charged 24 with responsibility for Education; 25 Panel has the meaning assigned by section 11 of this Act; 26 Professional Misconduct means any dishonest act or attempt to subvert 27 the course of the accounting profession, by use of deceptive or reprehensible 28 methods, whether deliberate or not. 29 Registered accountant means a member of the Institute who is not a 30 Fellow or an Associate member; 31 Register means the register maintained in pursuance of section 6 of this

10 C No. Institute of Chartered Accountants of Nigeria () 1 Act 2 Tribunal has the meaning assigned to it by section 11 of this Act The Principal Act is amended by renumbering the existing section 20 4 as the new Section This Act shall be cited as the Institute of Chartered Accountants 6 of Nigeria () Bill, The first schedule to the Principal Act is amended of First schedule (a) By inserting immediately after the existing paragraph 1 (3) a new 9 sub paragraph (4) that is 10 (4) "An Appointed member of the Council shall not be elected by Council 11 into the Executive Coordinating Committee of Council." 12 (b) By substituting the existing Paragraph 1 (4) for the following new sub 13 paragraph 1 (5) and renumbering same accordingly that is 14 (5) Any member other than the immediate past president, who retires 15 from or otherwise ceases to be an elected member of the Council, shall be 16 eligible for re election into the Council. 17 (c) By inserting immediately after the new paragraph 1(5) a new 18 subparagraph (6) that is 19 (6) An appointed member of the Council shall serve for one term of three 20 years only and shall not be eligible for re-appointment thereafter. 21 (d) By substituting the existing paragraph 1 (5) for the following new 22 subparagraph and renumbering same as paragraph 1 (7) that is 23 (7) The Council shall at least three mouths before the annual General 24 meeting of the Institute announce the vacancies in its membership. 25 (c) By renumbering the existing sub paragraph (6) as (8) and the existing 26 subparagraph (7) as (9) respectively. 27 (f) By substituting the existing paragraph 4 with the following new 28 paragraph that is The quorum of the Council shall be ten; and the Council shall fix the 30 quorum of a committee of the Council excluding the ECC. 31 (g) By substituting the existing paragraph 5 (3) with the following new

11 Institute of Chartered Accountants of Nigeria() 2008 No. C subparagraph (3) that is 2 (3) The quorum of any general meeting of the Institute shall be fifty 3 members and that of any special meeting of the institute shall be Seventy - 4 five members. 5 (h) By substituting the existing paragraph 6 (2) with the following new 6 subparagraph (2) that is 7 (2) At any meeting of the Council, the Chairman or in his absence, any S of member of the Executive Coordinating Committee of Council in order 9 hierarchy shall preside; but if all are absent, the members present at the 10 meeting shall appoint one of the members at that meeting to preside. 11 (i) By substituting the existing paragraph 7 (2) with the following new 12 subparagraph (2) that is 13 (2) A committee appointed under this paragraph shall consist of the number 14 of persons determined by the Council, of whom not less than one-fifth shall 15 be members of the Council; and a person other than a member of the Council 16 shall hold office on the committee in accordance with the terms of the 17 instrument by which he is appointed. 18 (j) By inserting immediately after the existing paragraph 7 (3) a new 19 paragraph 7 (4) that is 20 (4) Faculty Boards, as constituted from time to time shall be Committees 21 of the Council The Third Schedule to the Principal Act is amended by substituting of Third 23 therefore the following new Paragraph 1, that is Schedule The quorum of the Tribunal shall be four one of whom shall be the 25 President and Chairman of the Council or the Vice President and Vice 26 Chairman of Council The schedule to the Principal Act is amended further by inserting Creation of Fourth 28 immediately after the third schedule, a new Fourth Schedule that is Schedule. 29 FOURTH SCHEDULE 30 FACULTIES 31 Pursuant to Section 20 of this Act, the faculties of the Institute as presently

12 C No. Institute of Chartered Accountants of Nigeria () 1 constituted are: 2 (1) Auditing, investigations and forensic accounting; 3 (2) Taxation and fiscal policy management; 4 (3) Consultancy and information Communications Technology; 5 (4) Insolvency and corporate re-engineering; 6 (5) Public Finance Management; and 7 (6) Corporate Finance Management. 8 The objects and duties of the Faculties shall be 9 (a) To register members into the faculties, 10 (b) To conduct research, seminars and other activities in furtherance of 11 its area of specialization, 12 (c) To issue guidelines for its members' practice, 13 (d) To monitor compliance with practice guidelines and standards issued 14 from time to time by the faculties and refer any breach to the Institute's 15 Investigating Panel; and 16 (e) To liaise with relevant committees of the Institute to achieve the 17 overall objectives of the Institute. EXPLANATORY MEMORANDUM This Bill seeks to amend the Institute of Chartered Accountants of Nigeria Act 1965 to amongst other things make the Act more responsive to the changing needs of the Institute's members and, address the emerging trends in the Nigerian Economic Environment.

13 [SB. 162] PUBLIC OFFICERS (REVIEW OF CASES) PANEL BILL, 2008 C2365 ARRANGEMENT OF CLAUSES Clauses: 1. Establishment of the Panel. 2. Composition of the Panel. 3. Functions of the Panel 4. Sittings of the Panel. 5. Ratification of the panel's decision by the President. 6. Allowances for the Chairman and members of the Panel. 7. Quorum of the Panel. 8. Appeal to the Federal High Court by the Petitioner. 9. Interpretation. 10. Citation.