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members a monopoly in the practice of accountancy. As evidence of this it may be mentioned that on the 25th May, 1893, at 1 General Meeting of the members of the Institute, it was formally resolved:-
That it is desirable to promote legislation which shall restrict public accountancy to existing or future
chartered accountanta."
The Society of Incorporated Accountants and Auditors which came into existence five years after the granting of the Charter, was for many years treated with contempt by the Institute, until at length it was compelled to admit the right of the Society to exist and be deserving of recognition as a lawful, efficient and reputable professional body.
As a further example of the spirit of the Institute towards persone outside its portals, it may be mentioned that at the inception of the Central Association of Accountants, the Institute issued a Writ against the Signatories to the Memorandum of Association of the Central Association, and applied to the Court of Chancery for an injunction to restrain ita incorporation. The application was heard by Mr. Justice Kekewich, on the 23rd June, 1905, when the motion was dismissed, with costs against the Institute. Mr. Justice Kekewich, in the course of his judgment stated that the evidence adduced by the Institute in support of their claim was very flimsy as to the name of the Association being likely to induce confusion, and that the Institute could not insist upon having no rivale in the field.
Of late years, however, a more tolerunt spirit appears to have prevailed among the members of the Institute, for Mr. W. B. Peat, the then President of the Institute, on the occasion of the Annual Meeting of that body in 1907, said:-
"It may be of interest to observe that of recent years the provinces
appear now to be coming into line with what we believe to be the representative opinion of the Metropolis, that the exclusive policy of the past 7 years has been a mistaken one, and that it is desirable that the task of co-operation with the other bodies so long as they provide reasonable standards of qualification, should be seriously admitted."
With a view to arriving at a satisfactory conclusion on this subject, and in response to an invitation contained in a letter from the Hon. G. Colville (the Secretary of the Institute), the President of the Central Association, one member of the Council, and the Secretary, attended at the Institute on Wednesday, the 19th May last, to meet the Committee of the Institute and the Society charged with the conduct of the Bill The President of the Institute, Mr. J. B. Ball, was in the Chair, supported by Mr. W. B. Pest. Mr. James Martin, the Secretary of the Society, was also present and took part in the discussion.
The question was fully considered, and before retiring the members of the Central Association expressed the hops that they might later have a further opportunity of again discussing the position with the Committee, for it was the intention of the Central Association to most strenuously oppose any measure which would have the effect of excluding any of its members from its provisions,
(8) Objections to the Bill.
A superficial glance at the provisions of the Bill is sufficient to warrant its unqualified condemnation.
In the face of the resolution of the Institute above quoted and of the antagonistic attitude throughout adopted by that body towards persons who are not members, it is somewhat Gilbertian that the Institute should ask Parliament to appoint to fill the important office of Registrar of Professional Accountanta, its own Secretary for the time being, and require in perpetuity to have the appointment and removal of nine out of fifteen of the members of the Registration Committee to be formed under the proposed Act, with practically unlimited powers to make Rules unfettered and unchecked, and to exercise their powers without being amenable to any public body.
The Council of the Association, who have consistently advocated the principle of registration of accountants and would welcome any fair legislation tending to place the profession on a definite basią, unhesitatingly condemn the present Bill for the following reasons:-
(a) That the Bill is not drafted in the interest of the public, or of the profession generally, but is a private measure of an arbitrary character, promoted chiefly for the benefit of the Institute of Chartered Accountants in England and Wales, and the Society of Incorporated Accountants and Auditors. (3) That the Bill is an attempt to create a close profession by excluding therefrom a large body of com. petent and efficient persona (many of whom are members of the Central Association) who are now acting as principal clerks to Public Accountants, accountants in the employ of Bankers, Corporations, Public Bodies, or Limited Companies and the like, but who may be considered by prejudiced Committee to be constituted under the Bill, not to have the right of registration and thereby be prohibited from fairly and honestly earning their livelihood as Professional Accountants, which at present they are trained for and qualified to ‹lo.
(c) That the Professional Accountants Committee to be constituted under the Bill is proposed to be formed principally from among the members of the Institute of Chartered Accountants in England and Wales, and in view of the openly professed desire on the part of that Institute to confine the practice of accountancy in England and Wales to members of their own body, it would be improper and unjust to appoint such a Committee as is contemplated by the Bill, and antrust to them the wide powers set forth therein.
(d) That, for the last-mentioned reason, it would be unwise and unjust to appoint as the Registrar of Professional Accountants, the Secretary for the time being of the Institute of Chartered Accountants- in England and Wales.
C
(c) That it would be unjust and unreasonable to give power to a body of persons appointed by, and representing only a portion of the Professional Accountants, to decide as to whether their professional brethren should or should not be put upon the register as they may think fit, with power at their own unrestricted pleasure to impose upon applicants for registration, arbitrary conditions and prohibitive fees.
(/) That in no case should a Committee, however appointed, be empowered to make rules unless the same are approved and sanctioned by a public authority, or to exercise the powers and authorities conferred upon them, without being amenable to a public body.
(g) That the Bill will retard the future progress of Professional Accountancy. The Committee are of opinion that the formation of such a register as is contemplated in the Bill, would check the natural growth of the profession, to the detriment of the public welfare, and that it is contrary to the traditions of British Legislature to interfere in such a way as is indicated in this Bill, with the development of any calling or industry.
(4) That the Bill contains no provisions for the protection of the rights and interests of the Central Association of Accountants and its members, and others engaged in the profession, and the Bill, if passed into law, would seriously interfere with and cause irreparable injury to such rights, and would tend to deprive many of the members of the Association of their means of earning an honest livelihood. (i) That the Central Association of Accountants is the third largest hody of accountants in the United Kingdom, its membership exceeding the aggregate membership of the three Scottish Societies anėl one Irish Society named in the Bill. The Association is well known in the accountancy and commercial world, and membership is a guarantee of ability and integrity, and it is submitted it has acquired a vested right which should be acknowledged in any legislation dealing with accountants. (/) That in view of the importance of the Association, and of the seeful work which it has accomplished since its incorporation, and also of the fact that it is constituted under the same Acts of Parliament, and in the same way as the Society of Incorporated Accountants and Auditors, there is, in the opinion of the Committee. no justification for dissimilarity in the treatment of the Association and that Society.
(4) That, in particular, the Committee strongly object to clause 20 of the Bill, above set out in extenso, and submit that there is no justification for such a clause, which would in fact practically put an end to the Association, disperse its members, and terminate its career of usefulness (See page 6).
(9) Committee's Recommendations.
The Committee therefore recommend that the passing of the Bill be strongly opposed, and, if it go to Committee, efforts should be made to amend it so as to provide (inter alia) :-
:
(a) That present and future members of the Central Association of Accountants, Ltd., should be entitled to registration as of right, and in all respects receive the same treatment as the members of the Insti tute of Chartered Accountants in England and Wales and the Society of Incorporated Accountants and Auditors, and that the name of the Central Association be inserted in the necessary clauses in the Bill.
(5) That the Registrar of Professional Accountants should be, or be appointed by, the President of the
Board of Trade, or some other public authority.
(c) That the Professional Accountants Committee should be elected annually by the registered
Professional Accountants themselves.
(d) That any rules made by the Committee under the Bill should require the approval of the Board of
Trade.
(e) That any person other than a member of the Central Association or any of the Societies named in the Bill, who has bad at least ten years' experience in the practice of accountancy, either as a principal or in the office of a practising accountant or both, should be entitled to be registered on passing the examination to be prescribed by the Committee under the Bill, and should be entitled to sit for such examination whether he has or has not served under Articles of Apprenticeship.
) That, as regards the power of the Committee to refuse registration, rectify the register and reatore names thereto, there should be a right of appeal to the Board of Trade or other public authority. On the 5th July, 1909, the Central Association prepared and sealed a petition to the House of Lords against the Bill, praying in the event of it being read a second time, that the Bill be referred to a Select Committee, and that the Central Association might be heard by themselves, their Counsel and witnesses against the Bill, and in support of the insertion therein of such clauses and provisions as they might deem necessary, for the protection of the Association and its members.
The petition was presented in person by the Right Honourable Lord Cheylesmere on the following day.
65, London Wall,
London, EC
GEORGE BARTLETT, Chairman.
GEO, S. BURTON,
DAN SMITH.
NEVILLE ASPRAY.
Members of the Committee.
5th August, 1909.
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