 bill no  xxvi of  2010 the cost and works accountants (amendment) bill, 2010 a billfurther to amend the cost and works accountants  act, 1959be it enacted by parliament in the sixty-first year of the republic of india as follows:—short title and commencement1 (1) this act may be called the cost and works accountants (amendment) act,2010(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint23 of 1959substitution of references to certain expressions by certain other expressions2  in the cost and works accountants act, 1959  (hereinafter referred to as theprincipal act), throughout the act and in the first schedule and the second schedule to the said act, for the words "cost accountant", "cost accountants" and "cost accountancy" with their grammatical variations and cognate expressions, wherever they occur, the words "cost and management accountant", "cost and management accountants" and "cost and management accountancy" shall respectively be substituted;3 in section 2 of the principal act,—amendment of section 2(i) in sub-section (1),—(i) after clause (e), the following clause shall be inserted, namely:—9 of 1932'(ea) "firm" shall have the meaning assigned to it in section 4 of the indian partnership act, 1932, and includes,—6 of 2009(i) the limited liability partnership as defined in clause (n) of sub-section (1) of section 2 of the limited liability partnership act,2008; or(ii) the sole proprietorship, registered with the institute;'; (ii) in clause (f), for the words "institute of cost and works accountants of india", the words "institute of cost and management accountants of india" shall be substituted;(iii) after clause (fa), the following clauses, shall be inserted, namely:—9 of 1932'(fb) "partner" shall have the meaning assigned to it in section 4 of the indian partnership act, 1932 or in clause (q) of sub-section (1) of section 2 of the limited liability partnership act, 2008, as the case may be;6 of 2009(fc) "partnership" means—(a) a partnership as defined in section 4 of the indian partnership act, 1932; or9 of 1932(b) a limited liability partnership which has no company as its partner;';(iv) after clause (ia), the following clause shall be inserted, namely:—'(iaa) "sole proprietorship" means an individual who engages himself in the practice of cost and management accountancy or offers to perform services referred to in clauses (ii) to (iv) of subsection (2);';(ii) in sub-section (2),—(a) after the words "in partnership with one or more members of the institute in practice", the words "or in partnership with members of such other recognised professions as may be prescribed" shall be inserted;(b) in clause (i), for the words "cost and works accountancy", the words"cost and management accountancy" shall be substituted;(c) in clause (ii), for the words "certification of cost accounting and related statements or holds himself out to the public as a cost accountant in practice", the words "certification or auditing of cost and management accounting and related statements or holds himself out to the public as a cost and management accountant in practice" shall be substituted;(d) in clause (iii), for the words "cost accounting", the words "cost and management accounting" shall be substitutedamendment of section 34 in section 3 of the principal act, in sub-section (1), for the words "institute of cost and works accountants of india", the words "institute of cost and management accountants of india" shall be substituted5 in section 5 of the principal act,—amendment of section 5(a)   in sub-section (2),—(i) for the letters "aicwa", the letters "acma" shall be substituted; (ii) for the words "institute of cost and works accountants",the words"institute of cost and management accountants of india" shall be substituted; (b) in sub-section (5),—(i) for the letters "ficwa", the letters "fcma" shall be substituted; (ii) for the words "institute of cost and works accountants",  the words"institute of cost and management accountants of india" shall be substitutedamendment of section 22a6 in section 22a of the principal act, for the words "institute of cost and works accountants of india", the words "institute of cost and management accountants of india" shall be substitutedamendment of section 257 in section 25 of the principal act, in sub-section (1), in clause (iii), for the  words"cost and works accountants", the words "cost and management accountants" shall be substitutedamendment of section 268 in section 26 of the principal act, in sub-section (1), the following explanation shall be inserted, namely:—'explanation—for the removal of doubts, it is hereby declared that the"company" shall include any limited liability partnership which has company as its partner for the purposes of this section'amendment of first schedule9 in the first schedule to the principal act, in part i, in item (7), for the  words"institute of cost accountants of india", the words "institute of cost and management accountants of india" shall be substituted10 in the second schedule to the principal act, in part i, in item (2), for the words "cost accounting", the words "cost and management accounting" shall be substitutedamendment of second schedule statement of objects and reasonsthe cost and works accountants act, 1959 has been enacted to make provision for the regulation of the profession of the cost and works accountants the said act was amended in 2006 by the cost and works accountants (amendment) act, 2006, inter alia, to enable the members of the institute of cost and works accountants of india to form multidisciplinary firms and offer multi-professional services in a competitive and commercial manner2 subsequently, the limited liability partnership act, 2008 has been enacted to make provisions for the formation and regualation of limited liability partnerships and for matters connected therewith or incidental thereto the limited liability partnership will be a separate legal entity, liable to the full extent of its assets, with the liability of the partners being limited to their agreed contribution in the limited liability partnership which may be of tangible or intangible nature or both tangible and intangible in nature3 it is proposed to extend the benefits of the limited liability partnership act, 2008 to the firms of cost and works accountants under the cost and works accountants act, 1959 and to amend the provisions of that act4 the cost and works accountants (amendment) bill, 2010, inter alia, proposes to amend the cost and works accountants act, 1959 to,—(i) apply certain provisions of the limited liability partnership act, 2008 to the cost and works accountants act, 1959 in order to allow the members of the professional institute governed by the cost and works accountants act, 1959 to form the limited liability partnership and insert new definitions of "firm", "partner", "partnership" and "sole proprietorship" for the said purpose;(ii) amend the cost and works accountants act, 1959 on lines similar with the provisions of the company secretaries act, 1980 so as to allow the professionals of the institute of cost and works accountants of india to form partnership with members of such other recognised professions;(iii) change the name of the "institute of cost and works accountants of india"to the "institute of cost and management accountants of india" and change the "cost accountants" to "cost and management accountants" 5 the bill seeks to achieve the above objectives financial memorandumclause 3 and clause 8 of the bill seeks to extend the benefits of the limited liability partnership act, 2008 to the firms of cost and works accountants under the cost and works accountants act, 1959 and clauses 4, 5, 6 and 9 of the bill seek to change the name of the "institute of cost and works accountants of india" to "institute of cost and management accountants of india" the provisions of the bill will not involve any expenditure of recurring or non-recurring nature from the consolidated fund of india memorandum  regarding  delegated  legislationclause 3 of the bill seeks to amend sub-section (2) of section 2 of the cost and works accountants act, 1959 to empower the council of the institute of cost and works accountants of india to make regulations for recognition of other professions with whom members of the institute can enter into partnership2 the matters in respect of which the said regulations may be made are matters of procedure and administrative detail, and it is not practicable to provide for them in the proposed bill itself3 the delegation of legislative power is, therefore, of a normal character annexure extracts from the cost and works accountants act, 1959 (23 of 1959)    2 (1)  in this act, unless the context otherwise requires,—definitions and interpretation    (f) "institute" means the institute of cost and works accountants of india constituted under this act;     (2) save as otherwise provided in this act, a member of the institute shall be deemed"to be in practice" when, individually or in partnership with one or more members of the institute in practice, he, in consideration of remuneration received or to be received,—(i) engages himself in the practice of cost and works accountancy; or (ii) offers to perform or performs services involving the costing or pricing of goods or services or the preparation, verification or certification of cost accounting and related statements or holds himself out to the public as a cost accountant in practice; or(iii) renders professional services or assistance in or about matters of principle or detail relating to cost accounting procedure or the recording, presentation or certification of costing facts or data; or      chapter ii the institute of cost and works accountantsincorporation of the institute3 (1) all persons whose names are entered in the register at the commencement of this act, and all persons who may hereafter have their names entered in the register under the provisions of this act, so long as they continue to have their names borne on the said register, are hereby constituted a body corporate by the name of the institute of cost and works accountants of india, and all such persons shall be known as members of the institute    5 (1)     fellows and associates(2) any person other than a person to whom the provisions of sub-section (3) apply shall, on his name being entered in the register, be deemed to have become an associate member of the institute and so long as his name remains so entered, shall be entitled to use the letters aicwa after his name to indicate that he is an associate member of the institute of cost and works accountants    (5) any person whose name is entered in the register as fellow of the institute and so long as his name remains so entered, shall be entitled to use the letters ficwa after his name to indicate that he is a fellow of the institute of cost and works accountants    38 of 1949constitution of appellate authority22a the appellate authority constituted under sub-section (1) of section 22a of the chartered accountants act, 1949, shall be deemed to be the appellate authority for the purposes of this act subject to the modification that for clause (b) of said sub-section (1), the following clause had been substituted, namely:—(b) the central government shall, by notification appoint two part-time members from amongst the persons who have been members of the council of the institute of cost and works accountants of india for at least one full term and who is not a sitting member of the council;     25 (1) save as otherwise provided in this act, no person shall—     (iii) seek to regulate in any manner whatsoever the profession of cost and works accountants     penalty for using name of the council, awarding degrees of cost accountancy, etc26  (1) no company, whether incorporated in india or elsewhere, shall practise as cost accountantscompanies not to engage in cost accountancy     the first schedule[see sections 21(3), 21a (3) and 22] part i professional misconduct in relation to cost accountants in practicea cost accountant in practice shall be deemed to be guilty of professional misconduct, if he—    (7) advertises his professional attainments or services, or uses any designation or expressions other than cost accountant  or professional documents, visiting cards, letter heads or sign boards, unless it be a degree of a university established by law in india or recognised by the central government  or a title indicating memebership of the institute of cost accountants of india or of any other institution that has been recognised by the central government or may be recognised by the council:provided that a member in practice may advertise through a write up, setting out the services provided by him or his firm and particulars of his firm subject to such guidelines as may be issued by the council;     the second schedule[see sections 21(3), 21b (3) and 22] part i professional misconduct in relation to cost accountants in practicea cost accountant in practice shall be deemed to be guilty of professional misconduct, if he— [10] m c(2) certifies or submits in his name, or in the name of his firm, a report of an examination of cost accounting and related statements unless the examination of such statement has been made by him or by a partner or an employee in his firm or by another cost accountant in practice;     rajya  sabha———— a billfurther to amend the cost and works accountants  act, 1959————(shri salman khurshid, minister of  corporate affairs)gmgipmrnd—1811rs(s5)—20-04-2010