The Institute of Company Secretaries of India (ICSI) has issued an important advisory to its students and other individuals regarding the misuse of the ‘CS’ prefix and related designations. This advisory, dated June 6th, 2024, highlights the legal implications under Section 24 of the Company Secretaries Act, 1980, for those who falsely claim to be members of the Institute or use restricted designations without proper authorization. Understanding these provisions is crucial for maintaining the integrity of the profession and ensuring compliance with the law.
Detailed Analysis
Section 24 of the Company Secretaries Act, 1980, is explicitly clear about the penalties associated with falsely claiming to be a member of the Institute of Company Secretaries of India. The section outlines the following key points:
1. Non-Members Misrepresenting Membership: Individuals who are not members of the Institute and who represent themselves as such face legal consequences. This includes using the designation “Company Secretary” or the letters “A.C.S.” (Associate Company Secretary) and “F.C.S.” (Fellow Company Secretary).
2. Members Without Certification Misrepresenting Practice:Even if an individual is a member of the Institute, they must possess a certificate of practice to legally represent themselves as practicing company secretaries. Misrepresentation in this regard is also punishable.
3. Penalties for Violations: The penalties for violating Section 24 are severe. A first-time offender can be fined up to one lakh rupees. Subsequent offenses can lead to imprisonment for up to six months, a fine up to five lakh rupees, or both.
The advisory serves as a stern reminder to students and other individuals to refrain from misusing these professional designations. The implications of not adhering to these regulations are not only legal but also ethical, impacting the credibility and trustworthiness of the profession.
The advisory issued by the Institute of Company Secretaries of India is a crucial reminder of the legal and ethical responsibilities that come with the professional designations in the field of company secretaries. Section 24 of the Company Secretaries Act, 1980, clearly delineates the boundaries and penalties associated with falsely claiming membership or practicing without proper certification. Students and other individuals are urged to take this advisory seriously and ensure strict adherence to avoid severe legal consequences.
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Institute of Company Secretaries of India
6th June, 2024
ADVISORY TO STUDENTS
(ADVISORY ON VIOLATION OF SECTION 24 OF COMPANY SECRETARIES ACT, 1980)
It has been noticed that some of the students of the Institute and other persons are prefixing ‘CS’ before their name in violation of Section 24 of the Company Secretaries Act, 1980 (the Act). It is hereby cautioned that such violations are punishable under the Act. Section 24 of the Act is reproduced below for ready reference:-
“24. Penalty for falsely claiming to be a member etc.
Subject to the provisions of section 7, any person who,—
(a) not being a member of the Institute,—
(i) represents that he is a member of the Institute; or
(ii) uses the designation “Company Secretary”; or
(iii) uses the letters “A.C.S.” or “F.C.S.” after his name; or
(b) being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practises as a Company Secretary, shall be punishable on first conviction with fine which may extend to one lakh rupees, and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to five lakh rupees, or with both.”
Students of the Institute and other persons are advised to take note of this Advisory for strict compliance. The Institute shall be constrained to initiate action as per the provisions of the law against all such violations.
Team ICSI
