An Ordinance to constitute an Institute of Cost and Management Accountants of Bangladesh for the purpose of regulating the profession of cost and management accountants. WHEREAS it is expedient to constitute an Institute of Cost and Management Accountants in Bangladesh for the purpose of regulating the profession of cost and management accountants and for matters connected therewith; NOW, THEREFORE, in pursuance of the Proclamations of the 20th August, 1975, and the 8th November, 1975, and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance:-
This Ordinance may be called the Cost and Management Accountants Ordinance, 1977.
(1) In this Ordinance, unless there is anything repugnant in the subject or context,-
(2) Save as otherwise provided in this Ordinance, 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 the remuneration received or to be received,-
and the words “to be in practice”, with its grammatical variations and cognate expressions, shall be construed accordingly.
Explanation.- An associate or fellow who is a wholetime salaried employee of any person shall not be deemed “to be in practice” within the meaning of this sub-section.
(1) All persons whose names are entered in the Register at the commencement of this Ordinance and all persons who may hereafter have their names entered in the Register under the provisions of this Ordinance, so long as they continue to have their names borne on the Register, are hereby constituted a body corporate by the name of the Institute of Cost and Management Accountants of Bangladesh and all such persons shall be known as members of the Institute.
(2) The Institute shall have perpetual succession and a common seal and shall have power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by its name sue or be sued.
(1) The following persons shall be entitled to have their names entered in the Register, namely:-
Provided that, in the case of any such person who is not a citizen of Bangladesh, or permanently residing in Bangladesh, he shall fulfil such further conditions as the Council may deem fit to impose.
Provided that any such examination or training of such Institute of Cost and Management Accountancy was recognised, before the commencement of this Ordinance, for the purpose of conferring the right to be registered as a member of the dissolved Institute;
Provided that any such examination or training of such Institute of Cost and Management Accountancy was recognised, before the commencement of this Ordinance, for the purpose of conferring the right to be registered as a member of the dissolved Institute.
(2) The Council shall, as early as possible, take such steps as may be necessary for having the names of all such persons as are mentioned in clause (a) of sub-section (1) entered in the Register without any application being made in that behalf or the payment of any fee and the name of every such person so entered shall be deemed to have been entered at the commencement of this Ordinance for the purpose of sub-section (1) of section 3.
(3) Every person belonging to any of the classes mentioned in clauses (b), (c), (d) and (e) of sub-section (1) may have his name entered in the Register on an application made to, and granted by, the Council in the prescribed manner and on payment of the prescribed fee.
Notwithstanding anything contained in section 4, a person shall not be entitled to have his name entered in or borne on the Register if he-
Provided that a person who has been removed from membership of the Institute for a specified period shall not be entitled to have his name entered in the Register until the expiry of such period.
(1) Save as otherwise provided in this Ordinance, the members of the Institute shall be of two classes designated as fellows and associates.
(2) A person, other than a person mentioned in sub-section (3), shall, on his name being entered in the Register, be an associate and, so long as his name remains so entered, shall be entitled to use the letters A.C.M.A. after his name to indicate that he is an associate member of the Institute.
(3) A person who was, immediately before the commencement of this Ordinance; a fellow of the dissolved Institute shall be entered in the Register as a fellow of the Institute, and such person, so long as his name remains so entered, shall be entitled to use the letters F.C.M.A. after his name to indicate that he is a fellow member of the Institute.
(4) A person who has been an associate for a continuous period of not less than five years and who possesses such qualifications as the Council may prescribe, may apply to the Council for admission as a fellow; and if the Council grants his application his name shall be entered in the Register as a fellow.
Explanation.-In computing the continuous period during which a person has been an associate of the Institute, there shall be included any continuous period during which he has been an associate of the dissolved Institute immediately before he became an associate of the Institute.
(5) The decision of the Council on an application made under sub-section (4) shall be final.
(1) No member of the Institute shall be entitled to practise within Bangladesh unless he holds a certificate of practice granted by the Council.
(2) The Council may, subject to such conditions as it may deem fit to impose, grant a certificate of practice to a member of the Institute who applies in the prescribed form and pays the prescribed annual fee for such certificate.
(3) Every member holding a certificate of practice shall pay the annual fee which shall be due on the first day of July in each financial year.
(4) A certificate of practice shall be liable to be cancelled for default in payment of the annual fee for any financial year.
Every member of the Institute in practice shall, and any other member may, use the designation of Cost and Management Accountant and no member using such designation shall use any other designation, whether in addition thereto or in substitution therefore:
Provided that nothing contained in this section shall be deemed to prohibit any such member from adding any other description or designatory letters to his name, if entitled thereto, to indicate membership of such other institute of accountancy, whether in Bangladesh or elsewhere, as may be recognised in this behalf by the Council, or any other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the Institute and in practice, from being known by its firm name as Cost and Management Accountants.
(1) There shall be a Council of the Institute for the management of the affairs of the Institute and for discharging the functions assigned to it under this Ordinance.
(2) The Council shall be composed of the following persons, namely:-
(1) Election of the members of the Council mentioned in clause (a) of sub-section (2) of section 9 shall be held at the annual general meeting of the Institute in such manner as may be prescribed.
(2) Where any dispute arises regarding any such election, it shall be referred by the Council to a Tribunal appointed by the Government in this behalf and the decision of such Tribunal shall be final:
Provided that no such reference shall be made except on an application made, within thirty days from the date of the declaration of the result of the election, to the Council by an aggrieved party supported by at least five members of the Institute who had attended the election.
(3) The expenses of the Tribunal shall be borne by the Institute or by the aggrieved party as may be ordered by the Tribunal.
(4) If the members of the Institute fail to elect any of the members of the Council mentioned in clause (a) of sub-section (2) of section 9, the Government may nominate any person duly qualified for the purpose to fill the vacancy, and the person so nominated shall be deemed to have been duly elected under that clause.
(2) If the Council fails to elect any of the office-bearers within one month of the election of its members mentioned in clause (a) of sub-section (2) of section 9 or, as the case may be, within one month of the expiry of the term of an office-bearer, the Government may appoint any of the members of the Council to fill in the vacancy, and the office-bearer so appointed shall be deemed to have been duly elected by the Council on the date of such appointment.
(3) The President shall be the chief executive of the Council.
(4) Save as provided in sub-section (5) an office-bearer shall, subject to his being a member of the Council, hold his office for a period of one year from the date on which he is elected or deemed to have been elected.
(5) Notwithstanding the expiry of the term of his office under sub-section (4), an office-bearer shall continue to perform his function until his successor is elected or deemed to have been elected.
(6) Where a vacancy occurs in the office of an office-bearer because of his resignation or ceasing to be a member of the Council, the Council shall elect another office-bearer to fill the vacancy within one month from the date the vacancy occurs.
(7) If the Council fails to elect a new office-bearer as provided in sub-section (6), the Government may appoint any of the members of the Council of fill the vacancy, and the office-bearer so appointed shall be deemed to have been duly elected by the Council on the date of such appointment.
(1) Any member of the Council may, at any time, resign his membership by writing under his hand addressed to the President, and the office of such member shall be deemed to have fallen vacant from the date of acceptance of his resignation by the President.
(2) The President may, at any time, resign his office by writing under his hand addressed to the Government, and the office of the President including his membership of the Council shall be deemed to have fallen vacant from the date of acceptance of his resignation by the Government.
(3) A member of the Council shall be deemed to have vacated his seat if he absents himself, without sufficient excuse, from three consecutive meetings of the Council, or if his name is, for any cause, removed from the Register under section 20, or remains out of Bangladesh for a continuous period exceeding one year.
(4) A casual vacancy in the Council shall be filled by election, or by nomination, as the case may be, and the person elected or nominated to fill the vacancy shall hold office for the remaining period of the duration of the Council:
Provided that no election shall be held or no nomination shall be made to fill a casual vacancy occurring within six months prior to the date of the expiry of the duration of the Council, but such a vacancy may be filled by co-option by the Council.
(5) No act done by the Council shall be called in question on the ground merely of the existence of any vacancy in, or defect in the Constitution of, the Council.
(1) The duration of the Council shall be three years from the date of its first meeting on the expiry of which a new Council shall be constituted in accordance with the provisions of this Ordinance.
(2) Notwithstanding the expiry of the duration of the Council under sub-section (1), it shall continue to function until a new Council is constituted in accordance with the provisions of this Ordinance, and upon such constitution, the Council so functioning shall stand dissolved.
(1) The Council shall exercise such powers and perform such functions as may be necessary to carry out the purposes of this Ordinance.
(2) In particular, and without prejudice to the generality of the foregoing provision, the powers and functions of the Council shall include-
The Institute shall ensure that all members of the Instituted shall comply with the Financial Reporting Standards and Auditing Standards issued by the Financial Reporting Council (FRC) pursuant to section 40 of the Financial Reporting Act, 2015.
A person shall not be entitled to have his name entered in or borne on the Register if he has been removed from the membership of the Institute on being found on inquiry not to have complied with the Financial Reporting Standards and Auditing Standards issued by the Financial Reporting Council (FRC) pursuant to section 40 of the Financial Reporting Act, 2015.]
For the efficient performance of its functions, the Council may-
(1) The Council shall constitute from amongst its members the following Standing Committees, namely:-
(2) The Council may also constitute such other Committees from amongst its members as it deems necessary for the purpose of carrying out the provisions of this Ordinance.
(3) The Executive Committee shall consist of the President, 7one of the Vice-Presidents nominated by the Council and three members nominated by the Council from amongst its members.
(4) The Education Committee shall consist of 8one of the Vice-Presidents nominated by the Council and four other members as may be nominated by the Council from amongst its members.
(5) The Examination Committee shall consist of 9one of the Vice-Presidents nominated by the Council and four members as may be nominated by the Council from amongst its members.
(6) The Disciplinary Committee shall consist of the President 10, Secretary and two other members nominated by the Council from amongst its members.
11(6A) The Research and Development Committee shall consist of the President, one of the Vice-Presidents nominated by the Council and four members nominated by the Council from amongst its members.(7) Every other Committee constituted under sub-section (2) shall consist of such members as the Council may decide.
(8) The President shall be the Chairman of every Committee of which he is a member, and, in his absence, the Vice-President, if he is a member of the Committee, shall be the Chairman.
(9) The Standing Committees shall perform such functions as may be prescribed and the other Committees shall perform such functions as the Council may direct.
(1) For the purpose of advising and assisting it in the discharge of its functions, the Council may constitute such Branch Councils as and when it deems necessary.
(2) A Branch Council shall be constituted in such manner and perform such functions as may be prescribed.
(3) The Council may, at any time, dissolve any Branch Council constituted under sub-section (1).
(1) There shall be established a fund under the management and control of the Council into which shall be paid all moneys received by the Council and out of which shall be met all expenses and liabilities properly incurred by the Council.
(2) The Council may invest any money for the time being standing to the credit of the fund in any Government security or in any other security approved by the Council.
(3) The Council shall cause maintenance of proper accounts of the funds distinguishing capital from revenue.
(4) The annual accounts Institute shall be subject to audit by a chartered accountant within the meaning of the Bangladesh Chartered Accountants Order, 1973(P.O. No. 2 of 1973):
Provided that no member of the Council or a person who is in partnership with such member shall be eligible for appointment as auditor under this sub-section.
(5) As soon as may be practicable after the close of each financial year, but not later than the thirtieth day of November next following, the Council shall cause to be published a copy of the audited accounts and the Report of the Council for that financial year and copies of the said accounts and Report shall be forwarded to the Government and to all the members of the Institute.
(1) The Council shall maintain in the prescribed manner a Register of the members of the Institute.
(2) The Register shall include the following particulars about every member of the Institute, namely:-
(3) The Council shall cause to be published, in such manner as may be prescribed, a list of members of the Institute as on the first day of July of each year, and a copy of the list shall be sent to every member of the Institute.
(4) Every member of the Institute shall, on his name being entered in the Register, pay such annual membership fee as may be prescribed and different fees may be prescribed for associates and for fellows.
(1) The Council may remove from the Register the name of any member of the Institute-
(2) The Council shall remove from the Register the name of any member who is not entitled to remain a member under this Ordinance.
A person shall, without prejudice to any other proceedings which may be taken against him, be punishable, on first conviction, with fine which may extend to one thousand taka, and, on any subsequent conviction, with imprisonment which may extend to six months, or with fine which may extend to five thousand taka, or with both, if he-
(1) Save as otherwise provided in this Ordinance, no person shall-
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable, on first conviction, with fine which may extend to one thousand taka, and, on any subsequent conviction, with imprisonment which may extend to six months, or with fine which may extend to five thousand taka, or with both.
(3) Nothing contained in this section shall apply to any University established by law or to any institution affiliated thereto.
(4) If the Government is satisfied that any diploma, certificate or designation granted or conferred by any person other than the Institute, which purports to be a qualification in cost and management accounting but which, in the opinion of the Government, falls short of the standard of qualifications prescribed for cost and management accountants and does not in fact indicate or purport to indicate the profession or attainment of any qualifications or competence in cost and management accounting similar to that of a member of the Institute, it may, by notification in the official Gazette and subject to such conditions as it may think fit to impose, declare that this section shall not apply to such diploma, certificate or designation.
(1) No company, whether incorporated in Bangladesh or elsewhere, shall practise as cost and management accountant in Bangladesh.
(2) If any company contravenes the provisions of sub-section (1), then, without prejudice to any other proceedings which may be taken against the company, every director, manager, secretary and other officer of such company who is knowingly a party to such contravention, shall be punishable, on first conviction, with fine which may extend to one thousand taka, and, on any subsequent conviction, to five thousand taka.
(1) No person, other than a member of the Institute, shall sign any document on behalf of a cost and management accountant, industrial accountant, management accountant or works accountant, or a firm of industrial, cost or management accountants in his or its professional capacity.
(2) Any person contravening the provisions of sub-section (1) shall be punishable, on first conviction, with fine which may extend to one thousand taka, and, on any subsequent conviction, to five thousand taka.
(1) If the person committing an offence under this Ordinance is a company, the company as well as every person in-charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Ordinance has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.-For the purposes of this section,-
No person shall be prosecuted under this Ordinance except on a complaint made by or under the order of, the Council or of the Government.
(1) Where an order is made under this Ordinance reprimanding a member of the Institute a record of the punishment shall be entered against his name in the Register.
(2) Where the name of any member is removed from the Register, the certificate of membership and the certificate of practice, if any, granted to him shall be recalled and cancelled.
No suit, prosecution or other legal proceeding shall lie against the Government, Council or any Committee thereof, or any officer or employee of the Council in respect of anything which is in good faith done or intended to be done under this Ordinance or of any regulation or order made thereunder.
(1) Where a cost and management accountant or a firm of such accountants has more than one office in Bangladesh, each one of such office shall be in the separate charge of a member of the Institute:
Provided that the Council may, in suitable cases, exempt any cost and management accountant or a firm of such accountants from the operation of this sub-section.
(2) Every cost and management accountant in practice or a firm of such accountants maintaining more than one office shall send to the Council a list of offices together with the names of the persons in charge thereof and shall keep the Council informed of any change in relation thereto.
(1) Where any country prevents persons of Bangladesh domicile from becoming members of any institution similar to the Institute, or from practising the profession of cost and management accountancy, or subjects them to unfair discrimination in that country, no person of any such country shall be entitled to become a member of the Institute or to practise the profession of cost and management accountancy in Bangladesh.
(2) Subject to the provisions of sub-section (1), the Council may prescribe the conditions, if any, subject to which foreign qualifications relating to cost and management accounting shall be recognised for the purpose of entry in the Register of members.
(3) Nothing contained in sub-sections (1) and (2) shall apply to a person whose services as a cost and management accountant have been obtained by the Government.
(1) The Council may, by notification in the official Gazette, make regulations for carrying out the purposes of this Ordinance.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-
(3) All regulations made by the Council under this Ordinance shall be subject to the condition of previous publication and to the approval of the Government.
(4) The Council shall, as soon as practicable, send a copy of any regulation made by it to every member of the Institute.
(1) Where the Government considers it expedient so to do, it may, by order in writing, direct the Council to make any regulation, or to amend or rescind any regulation already made within such period as it may specify in this behalf.
(2) If the Council fails or neglects to comply with such direction within the specified period, the Government may make or amend, with or without modifications, or rescind, any regulation directed to be made, amended or rescinded; and any regulation so made, amended or rescinded by the Government shall be deemed to have been made, amended or rescinded by the Council and shall have effect accordingly.
(1) Upon the constitution of the Institute under section 3, the Cost and Industrial Accountants Act, 1966 (XIV of 1966), hereinafter referred to as the said Act, shall stand repealed.
(2) Upon the repeal of the said Act,-
Provided that persons who were honorary office bearers and other members of the Council of the dissolved Institute and functioning immediately before the repeal of the said Act shall, until such time as the Council is constituted under section 9, be the honorary office bearers and other members and perform the functions of, and be deemed to be, the Council constituted under this Ordinance;