Name Lending means when one lends his/her name and signature to be on records of the Company while that person is not on job in reality in such Company.
Consequences of Name Lending
1. Brings Disgrace to the Profession: Malpractices such as name lending destroys the Brand Image of our Prestigious Institute of Companies Secretaries of India (ICSI).
2. Unemployment : When Compliance is done only in letter and not in spirit, not only it results in poor governance practices but it also wipes away the available Job Opportunities for young Professionals.
3. Low Entry Level Salary : Though sky is the limit, when one is ready to build Strong Wings of Knowledge, Skill and Competence. However it has been observed that presence of such malpractices results in under valuation of services offered by the new members.
Cheap Thrills : Reasons for Name Lending
1. Extra Monetary Benefits to the person who is lending his/hers name.
2. Cost Cutting in Compliances by Companies.
Unethical vs Illegal
Name lending is against the Mission and Vision Statement of ICSI. Strict action is taken by the council whenever such events are brought to Notice, but still there is a need for strong & well defined statutory provision to curb this malpractice.
“Each one of us has a Strong Ambition to Earn a Name in Industry with Continuous Value Addition”
“Build a name which no one can afford for lending”