Corporate practice regulations
These concern when a director can engage in public practice.
Effective from 1 January 2008.
||These regulations were made by the Council on 6 November 1991 under former Bye-law 59(b) (now Bye-law 51(b)). They came into force on 1 December 1991.
||Words and phrases used in these regulations have the same meaning as in the bye-laws.
||The term director means any person occupying the position of director, by whatever name called and includes a shadow director within the meaning of the Companies Act 2006, section 251.
(These notes do not form part of the regulations)
- Regulation 4 permits members to engage in public practice as directors of bodies corporate. Under Bye-law 51(b) members are already permitted to engage in public practice as sole practitioners and partners and under Bye-law 1 practice as an employee is not treated as public practice.
- As a result of these regulations the only restrictions on corporate practice are now:
- those contained in ICAEW's Audit Regulations and Guidance; (www.icaew.com/auditnews)
- those contained in ICAEW's Designated Professional Body Handbook; (www.icaew.com/dpb) and
- those contained in ICAEW's Regulations governing the use of the description chartered accountants.
- A member who is an employee of a corporate firm is required to hold a practising certificate:
- if he is a responsible individual within the meaning of the Audit Regulations and Guidance (www.icaew.com/auditnews);
- if he is an insolvency practitioner licensed by the Institute; or
- in circumstances prescribed by the Council.
- Guidance on what constitutes engaging in public practice is contained in the ICAEW statement on engaging in public practice.
- The Companies Act 2006, section 251(1) and (2), states that:
- 'In the Companies Acts "shadow director" means a person in accordance with whose directions or instructions the directors of the company are accustomed to act.
- A person is not to be regarded as a shadow director by reason only that the directors act on advice given by him in a professional capacity.'
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