Sections 16 and 17 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 16 says who the Council must appoint (a Secretary and a Director (Discipline)), what else it may do about staff and allowances, and that the Secretary may speak but not vote at Council meetings. Section 17 sets up the Standing Committees and other committees. One part of section 16, sub-section (1) as substituted in 2022, is enacted but not yet in force, so the 2006 sub-section (1) is the law in force.
This article is as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022). Section 16(1) as substituted by the 2022 Amendment Act is, as per the edition and S.O. 2184(E) dated 10 May 2022, not yet brought into force; a later commencement notification should be checked. Later amendments and notifications should be checked generally.
In force: the Council shall appoint a Secretary (duties as prescribed) and a Director (Discipline) (functions under the Act and the rules and regulations). Enacted by Act 12 of 2022 but not yet in force: a Secretary acting as Chief Executive Officer, and a Director (Discipline) with Joint Directors (Discipline), whose appointment or termination needs the previous approval of the Central Government. Section 16(2) and (3) and section 17 (Standing Committees: Executive, Examination and Finance) are in force.
Section 16(1): the officers the Council must appoint
The section is headed "Officers and employees, salary, allowances, etc." Sub-section (1) begins "For the efficient performance of its duties, the Council shall" appoint the officers named. The two versions are set side by side below.
| Point | In force (2006 text) | Enacted by Act 12 of 2022, not yet in force |
|---|---|---|
| Secretary | a Secretary to perform such duties as may be prescribed | a Secretary who will carry out administrative functions of the Institute, as its Chief Executive Officer |
| Director (Discipline) | a Director (Discipline) to perform such functions as are assigned to him under the Act and the rules and regulations framed thereunder | a Director (Discipline) and Joint Directors (Discipline), not below the rank of Deputy Secretary of the Institute, to perform the functions assigned to them under the Act and the rules and regulations |
| Central Government's role | none stated in the sub-section | proviso: no appointment, re-appointment or termination of the Director (Discipline) or a Joint Director (Discipline) takes effect unless made with the previous approval of the Central Government |
The in-force sub-section is short. "Prescribed" means prescribed by regulations made under the Act, so the Secretary's duties are in the regulations. The Director (Discipline) heads the Disciplinary Directorate in section 21 and examines information and complaints; that process is explained in the article on section 21.
The 2022 text would make the Secretary the Chief Executive Officer for administrative functions, add Joint Directors (Discipline) of at least Deputy Secretary rank, and require the Central Government's previous approval for the appointment, re-appointment or termination of the Director (Discipline) or a Joint Director. It is part of the same 2022 package as the 2022 section 21, which also names Joint Directors. Until it is brought into force, the 2006 text is the law. Practical steps on staff appointments and governance papers are the kind of point a compliance documentation review can help to track.
Section 16(2): what the Council may also do
Section 16(2) is in force, with clause (c) as substituted in 2022 from 10 May 2022. The Council may also:
- (a) appoint such other officers and employees as it considers necessary;
- (b) require and take from the Secretary or any other officer or employee such security for the due performance of his duties as the Council considers necessary;
- (c) prescribe the manner of appointment, powers, duties and functions of the Secretary and other officers and employees, their salaries, fees, allowances and other terms and conditions of service (earlier the clause covered the salaries, fees, allowances and terms only; the manner of appointment and the powers, duties and functions were added in 2022); and
- (d) with the previous sanction of the Central Government, fix the allowances of the President, Vice-President and other members of the Council and members of its Committees.
Clause (d) is the only place in section 16(2) where the Central Government's sanction is needed. The amount of any allowance is not stated in the Act.
Section 16(3): the Secretary at Council meetings
The Secretary is entitled to participate in the meetings of the Council but is not entitled to vote.
Section 17: committees of the Council
17(1): Standing Committees. The Council shall constitute from amongst its members three Standing Committees: (i) an Executive Committee, (ii) an Examination Committee and (iii) a Finance Committee. The Finance Committee replaced "a Disciplinary Committee" in 2006, from 17 November 2006; discipline is now handled by the bodies in Chapter V.
17(2): other committees. The Council may also form such other committees from amongst its members as it considers necessary to carry out the Act. A committee so formed may, with the sanction of the Council, co-opt other members of the Institute, not exceeding one-third of the members of the committee, and a co-opted member has all the rights of a member of the committee. The limit was two-thirds before the 2006 Amendment Act.
17(3): composition. Each Standing Committee consists of the President and the Vice-President ex officio and a minimum of three and a maximum of five members elected by the Council from amongst its members.
17(4): chair. The President and the Vice-President are the Chairman and Vice-Chairman respectively of each Standing Committee.
17(5): term. Every member of a Standing Committee other than the Chairman and the Vice-Chairman holds office for one year from the date of his election and, subject to being a member of the Council, is eligible for re-election.
17(6): functions. The Standing Committees exercise such functions and are subject to such conditions as may be prescribed, in the regulations.
| Item | Rule |
|---|---|
| Standing Committees | Executive, Examination, Finance |
| Chair | President; Vice-Chairman is the Vice-President |
| Elected members | minimum three, maximum five, from the Council |
| Term of other members | one year, re-election possible while a Council member |
| Co-option (other committees) | up to one-third of the committee, with the Council's sanction |
Section 2(1) defines "Standing Committee" as one constituted under section 17(1), a definition added in 2022.
A worked example
The Council wants to form a committee on technical matters. Under section 17(2) it may form it from amongst its members and, with its own sanction, co-opt members of the Institute up to one-third of the committee's strength. Each co-opted member has the rights of a member of that committee. Separately, to fix a sitting allowance for committee members the Council needs the previous sanction of the Central Government under section 16(2)(d).
Need help with Council governance papers?
Appointment letters, delegations and committee records are easier to defend when they follow the Act and the regulations closely. Our compliance documentation team can help organise the records and check them against the sections explained here.
Key takeaways
- In force: the Council shall appoint a Secretary and a Director (Discipline) under the 2006 section 16(1).
- Not yet in force: the 2022 section 16(1), with a Chief Executive Officer Secretary, Joint Directors (Discipline) and Central Government approval for the Director (Discipline) and Joint Directors. A later notification should be checked.
- The Council may appoint other staff, fix terms, and, with the Central Government's previous sanction, fix allowances.
- The Secretary can participate but not vote.
- Standing Committees are the Executive, Examination and Finance Committees.
- Other committees may co-opt members up to one-third of their strength.
Read next
- Section 21 of the Chartered Accountants Act, 1949: the Disciplinary Directorate
- Section 18 of the Chartered Accountants Act, 1949: finances of the Council
- Section 15 of the Chartered Accountants Act, 1949: functions of the Council
- Sections 16 to 18 of the Cost Accountants Act, 1959: officers, committees and finances
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.