The advisability of amalgamating into one organization was then considered, and in result, the Institute of Chartered Accountants in England and Wales was incorporated by Royal Charter on the 11th May, 1880. The Charter is expressed to be granted as a public recognition of the importance of the profession of Accountancy and "to secure for the community the existence of a class of persons well qualified to be employed in the responsible and difficult duties often devolving on public accountants." All persons who were members of any of the five before-mentioned Societies at the date of the Charter, were constituted, without examination or any other qualification whatever, members of the Chartered Institute. In addition to the members of the five Societies who became members of the Chartered Institute as of right, certain other persons were also entitled to be admitted without examination.
Its members are divided into two classes, styled respectively "Fellows" and "Associates," and t erpowered by the Charter to use the initials "F.C.A." or "A.C.A."
Admission to membership of the Institute is now obtained by serving under Articles for five years and obtaining & Certificate of having passed the final examination provided for by the Charter. It may, however, be observed that by Clanse 14 of the Charter, the Council are empowered at any time by a majority of three- fourths of their number present and voting, to dispense in certain cases with compliance with the Charter in the casss and circumstances provided by the bye-laws, and to alect as a Fellow or Associate any candidate for admission, although such candidate may not have complied with the provisions of the Charter applicable in his case.
The bye-laws made under this clause of the Charter empower the admission to membership, without examination, of a person who has been in practice as a public accountant for certain specified terms of years, whether such practice shall have been continuous or otherwise.
It is hardly necessary to point out that the Charter of the Institute does not confer, or purport to confer, on the members thereof, any monopoly or exclusive privilege in the practice of Accountancy, and at the date of the Charter there was, and has ever since been in existence, a large and efficient body of accountants not members of the Institute.
(2) The Society of Incorporated Accountants and Auditors. This Society was incorporated in the year 1885 under the Companies Acts, 1862 to 1883, as a Company limited by guarantee, as distinguished from a Company limited by shares, that is to say, every member of the Association undertakes to contribute to the assets of the Society in the event of the same being wound up during the time he is a member, or within one year afterwards, for the payment of the debts and liabilities of the Society, such amount as may be required, not exceeding £1, the amount fixed for this purpose by the Memorandum of Association of the Society.
The Society is a self-constituted body, formed and brought into existence exactly in the same way as any other Company registered under the Joint Stock Companies Act, and enjoys the privileges, and is subject 10 the obligations imposed on Companies generally by the Britisk Companies Acta.
Under the provisions of section 23 of the Companies Act, 1867, the Society was, by licence of the Board of Trade, registered without the addition of the word "limited" to its name, this privilege (if desired by the Promoters) being accorded to Companies which are not formed for the purposes of gain.
The main objects of the Suciety, as set out in its Memorandum of Association, are: to provide a central organization for Accountants and Auditors, and generally to do all such things as from time to time may be necessary to elevate the status and procure the advancement of the interests of the profession, and to provide for the better definition and protection of the profession, by a system of examinations and the issue of certificates.
The members of the Society are divided into Fellows and Associates, who use the letters "F.S.A.A.” and "A.3.A.A." respectively, and style themselves "Incorporated Accountants."
The Articles of Association of the Society, containing regulations as to the admission of members, have from time to time been altered by special resolution.
No examination was necessary for the original members of the Society, nor need persons who were in practice, or in the service of an accountant on the 31st December, 1885, and have been continuously so engaged since, pass any examination.
Under the bye-laws of the Society, service made under Articles of Apprenticeship is made a condition precedent to the examinations (except in certain specified cases).
The Articles of Association empower a meeting of the Council at which one half of the members thereof are present, by a vote of three-fourths at least of the whole number present, to admit without examination persons as members who may not be eligible under the provisions of the Articles, and it is in the absolute discretion of the meeting to decide whether the case before it is special or not.
In the year 1889 an Agreement was entered into between the Society and the Scottish Institute of Accountants (an Association established in Scotland in the year 1880) whereby the Scottish Institute became the Scottish Branch of the Society and the members thereof were transferred to the Society's roll of member- ship. By this arrangement 123 additional persons became members of the Society, it is believed without
examination.
In the year 1902 a further Agreement was entered into between the Society and the Institute of Accountants in the South African Republic whereby that Institute became the Transvaal Branch of the Society and the members thereof were transferred to the Society's roll of membership. This Agreement was the means of adding 77 names to the roll of the Society, again, it is believed, without any examination,
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(3) The Central Association of Accountants, Limited by Guarantee.
This Association was incorporated on the 4th July, 1905, under the Companies Acta, 1862 to 1900, as a Company limited by guarantee. Like the Society of Incorporated Accountants and Auditors, it is a self- constituted body, formed for purposes not of gain, and enjoying the privileges and obligations imposed on companies formed under the British Companies Acts. The only difference between the constitution of the Central Association and that of the Society of Incorporated Accountants and Auditors is that the Association has not applied for the sanction of the Board of Trade to omit the word "limited" from its title.
The Committee desire to emphasize the fact that there are no special privileges either in respect of powers posscssed or the extent of legal recognition afforded, enjoyed by the Institute of Chartered Accountants in England and Wales and the Society of Incorporated Accountants and Auditors which are not equally enjoyed by the Central Association of Accountants.
The main objects of the Central Association of Accountants, as set out in its Memorandum of Association, are the provision of a central organization of accountants and auditors and the consolidation of the interests of the profession by a system of examinations and the issue of certificates.
The Association is governed by a Council of not more than twelve, elected by the members in General Meeting.
The members of the Association are divided into two classes, styled "Fellows" and "Licentiates," and the bye-laws of the Association authorize its members to designate themselves "Associated Accountants" and to use the initials "F.A.A." and "L.A.A." respectively.
The admission of candidates for membership of the Central Association of Accountants, is regulated by the following provisions of the Articles of Association:-
"No person shall be eligible for admission as a member of the Association unless he has shown to the satisfaction of the Council or Committee of the same that he is in practice as a public accountant at the date of application, and was so engaged prior to the date of the incorporation of this Association or who is at the date of application a senior clerk to a public accountant or an accountant in the service of the Government of the United Kingdom or of any Colony or dependency of the United Kingdom or of a Corporation or public body, and who was so engaged at the date of incorporation of this Association. Applicants for menabership not having the above qualifications shall only be elected on satisfactorily passing the examinations fixed by the Council or a Committee of the same, from time to time by bye-law or otherwise, excepting under circumstances considered by a majority of three-fourths of not less than one-half of the Council or Committee for the time being as special, but under no cir cumstances shall a person be admitted a member unless he is at the date of application a senior clerk to a public accountant, or accountant to a Limited Company or other public body, or who is in practice as a public accountant."
Except as provided by the above clause, admission to membership of the Association is only obtained after passing the examinations prescribed by the Council. The examinations are of a comprehensive character, consisting of (a) Preliminary, (¿) Intermediate, (c) Licentiate, and (d) Fellow. The examination for Licentiate includes papers on the following subjects:-
Advanced Bookkeeping and General Commercial Knowledge. Auditing.
Executorship Accounts.
The rights and duties of Liquidators, Trustees and Receivers, Joint Stock Company and Bankruptcy Law. Mercantile Law.
The Fellowship examination includes papers on:-
Auditing.
Adjustment of Partnership and Executorship Accountą. The law of Arbitrations and Awards,
The law relating to Partners and Executors.
The rights and duties of Liquidators, Trustees and Receivers. Joint Stock Company and Bankruptcy law. Mercantile Law.
Specimens of past examination papere are set out in the Year Books of the Association, and from them it will be seen that the standard of knowledge required of candidates for examination is in every respect equal to that of either the Institute of Chartered Accountants or the Society of Incorporated Accountants and Auditors.
The principal difference between the regulations of the Institute on the one hand and the Central Association on the other, as to the admission of members, lies in the fact that the Central Association does not insist upon service under Articles of Clerkship, involving, as it usually does, the payment of a premium, The Central Association maintains that a number of years' practical experience, coupled with a searching examination, is likely to be a far better guarantee of efficiency than that afforded by service for a short term of apprenticeship under Articles.
In furtherance of its objects, the Central Association of Accountants, since its incorporation has (inter alia) effected the following:---
(e) Held half-yearly examinations for candidates for membership.
(8) Established District Centree and opened Branch Offices at Manchester, Liverpool, Birmingham, Bristol, Leeds, West Hartlepool and Nottingham, and also in Sestland, United States of America, Australia, India and South Afica, whero examinations of candidates are periodically conducted.
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