The Hindu Business Line : To strike partnerships with other professionals

THE Council of the Institute of Company Secretaries of India (ICSI) has given its `in-principle' nod to allow its members in practice to strike partnerships with other professionals such as chartered accountants and cost accountants.

"The Council, in its recently concluded meeting, has given an in-principle approval to the proposal. However, there are quite a few issues, which would have to be addressed jointly with other institutes - the Chartered Accountants and Cost & Works Accountants," Mr Mahesh Anant Athavale, President, ICSI, said.

Elaborating further, he said issues regarding exclusive areas of practice, training of trainees, name of the firm, disciplinary mechanism, and reciprocal arrangements need to be sorted out.

"Only after these issues and modalities involved are finally accepted by all, actual partnerships may be formed," he said, while noting, "To deliberate upon these issues, the co-ordination committee comprising representatives of the three institutes is likely to meet in May."

With growing preference among the companies for `one-stop shop' or `multi-disciplinary firms' to seek professional consultancy, the pressure seems to be increasing on the services to strengthen their collective competencies by establishing synergistic relationships.

Meanwhile, the CA institute has already passed a similar resolution, however, to bring into effect the proposal that an amendment to the professionals act is required.

Commenting on the factors that have triggered off this decision to permit the members in practice to enter into partnerships with other professionals, Mr Athavale said, "The concept of mega firms and private liquidators in the Companies (Amendment) Bill, 2003 has prompted this move. Further, as per the memorandum of understanding (MoU) signed between the three professional institutes — ICAI, ICSI and ICWAI — in 2000 is not only for professional development and continuing education, but also for allowing partnership among the practising members of the three institutes."

Commenting on the MoU, Mr Athavale said the three institutes have agreed to foster partnership among their practising members and, for the purpose, make requisite provisions in their respective Acts and Regulations. Besides this, sharing of resources and infrastructure, holding joint programmes, and common approach to administrative matters also formed part of the MoU.

Although the Companies (Amendment) Bill has since been withdrawn, it clearly indicates the increasing demand for such firms in the long-term, he said.