Membership Services



Malaysian Institute of Accountants Rules



Preliminary

MALAYSIAN INSTITUTE OF ACCOUNTANTS
(MEMBERSHIP AND COUNCIL) RULES 2001 [P.U.(A)343/2001]

(as amended by the MALAYSIAN INSTITUTE OF ACCOUNTANTS (MEMBERSHIP AND COUNCIL) (AMENDMENT) RULES 2002 [P.U.(A)258/2002])

IN exercise of the powers conferred by section 7 of the Accountants Act 1967 [ Act 94], the Malaysian Institute of Accountants with the approval of the Minister makes the following rules:

PART I - PRELIMINARY

Citation and commencement
1. (1) These rules may be cited as the Malaysian Institute of Accountants (Membership and Council) Rules 2001.
  (2) These Rules come into operation on 9 November 2001.
Interpretation
2. In these Rules, unless the context otherwise requires -
“member in public practice” means a chartered accountant or licensed accountant who, as a sole proprietor or in a partnership, provides or is engaged in public practice services in return for a fee or reward for such services otherwise than as an employee;
  “seal” means the common or official seal of the Institute.
  “public practice services” includes—
  (a) auditing including internal auditing;
  (b) accounting and all forms of accounting related consultancy;
  (c) accounting related investigations or due diligence;
  (d) forensic accounting;
  (e) taxation, tax advice and consultancy;
  (f) bookkeeping;
  (g) costing and management accounting;
  (h) insolvency, liquidation and receiverships;
  (i) provision of management information systems and internal controls;
  (j) provision of secretarial services under the Companies Act 1965 [ 125]; or
  (k) such other services as the Council may from time to time prescribe.


Membership

PART II - MEMBERSHIP

Application for membership or reclassification of membership
3. (1) Every application for an admission as a member of the Institute shall be in the form as prescribed by the Council. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (2) The application under subrule (1) or a reclassification of such membership shall be submitted to the Council.  
Associate Member
4. (1) Any person who applies to be admitted as an associate member shall, subject to section 16A of the Act, satisfy the Council that— (Subst. P.U.(A)258/2002
w.e.f. 28 June 2002)
    (a) he possesses a first degree or a Masters degree or higher, in which he must have a major in accounting for either his first degree or Masters degree; and  
    (b) he has at least three years experience in teaching accountancy or accounting related subjects at an institution of higher learning or equivalent.  
  (2) The Council shall have absolute discretion in respect of the application under subrule (1) and the decision of the Council is final.  
Registration fees and annual subscription  
5. (1) Any applicant under rule 3 who is admitted as a member shall pay to the Institute on admission or reclassification a registration fee and the appropriate annual subscription as prescribed in the Schedule. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (2) Upon admission every member shall be issued by the Council with the respective certificate of membership under the seal of the Institute.  
  (3) For each and every subsequent year a member shall pay to the Institute the appropriate annual subscription as prescribed in the Schedule whenever due and payable. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (4) For the purposes of subrule (1), “registration fee” includes but is not limited to—  
    (a) admission fee; or  
    (b) reclassification fee.  
Resignation of member
6. (1) Any member of the Institute may at any time tender his resignation to the Registrar in writing.  
(2) Upon receiving the written resignation, the Registrar with the approval of the Council shall remove the name of the member from the register and he shall then cease to be a member of the Institute.
  (3) The Council may refuse to accept the resignation of any member if—  
    (a) it has any reason to believe that such member has been guilty of unprofessional conduct or that circumstances exist which may justify the removal of his name from the register;  
    (b) it is aware that any matter concerning such member is before the Investigation Committee or the Disciplinary Committee of the Institute;  
    (c) a matter concerning such member is pending appeal before the Disciplinary Appeal Board; or  
    (d) the member owes a debt to the Institute.  
Removal of member in arrears
7. (1) The Council may require the Registrar to remove from the register the name of any member who is in arrears for six months or more in the payment of any fees.  
  (2) The Registrar shall then inform the person whose name has been removed from the register by a notification delivered to him personally or sent to him by registered post and he shall then cease to be a member of the Institute.  
  (3) Without prejudice to any other provision of the Act, any person whose name has been removed from the register may at any time from the date of the notification under subrule (2) pay to the Council all fees which are in arrears or which would have been in arrears if he had continued to be a member of the Institute together with a readmission fee not exceeding one thousand ringgit and any other penalty as may be determined by the Council for his name to be restored in the register. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (4) Upon restoration of that person’s name in the register, he shall be deemed to be readmitted as a member of the Institute.  
Reinstatement of member who resigns
8. (1) Any member whose name has been removed from the register pursuant to rule 6 may at any time apply for his name to be reinstated in the register by paying a reinstatement fee of an amount not exceeding one thousand ringgit to be determined by the Council in each case and shall be subjected to any other terms and conditions as the Council may deem necessary to be imposed upon him. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (2) An application for a reinstatement under subrule (1) shall be accompanied with such information and explanation as may be required by the Council.  
  (3) Upon receiving such application, the Council has the discretion to either refuse or to reinstate the name of the applicant in the register and the Council may not give any reason in refusing to do so.  
Public practice and practicing certificate
9. (1) A member shall not hold himself out as a member in public practice unless he holds a valid practising certificate issued by the Institute pursuant to the provisions of this rule.
  (2) A member shall be entitled to be issued a practising certificate pursuant to the provisions of this rule if— (Subst. P.U.(A)258/2002
w.e.f. 28 June 2002)
    (a) the member has at least three years experience in the service of -  
      (i) a chartered accountant who is a member in public practice;  
      (ii) an accountant in public practice overseas who is a member of one of the recognized bodies specified in Part II of the First Schedule of the Act; or  
      (iii) an accountant in public practice overseas who is a member of any other professional bodies as may be recognized by the Council from time to time; or  
    (b) the member has at least three years of such other experience in any areas of the public practice services as may be approved by the Council,  
      and the member has complied with the provisions of this rule and such other requirements as the Council may from time to time determine.  
  (3) An application for a practising certificate under the provisions of this rule shall be made in the form prescribed by the Council and shall be accompanied by the annual practising certificate fee prescribed in the Schedule. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (4) The practising certificate shall be in such form as the Council may determine from time to time and shall be issued for a period not exceeding twelve months and ending on the last day of June in any year and shall, subject to subrule (6), be renewed automatically on a year to year basis for a period of twelve months each commencing on the first day of the next following month of July, whereupon the annual practising certificate fee shall become due and payable.  
  (5) For a member to retain the practicing certificate which has been issued under subrule (2), he must comply with the provisions of this rule and remain in public practice or engages in public practice services full time.  
  (6) A member shall cease to be entitled to a practicing certificate if he fails to pay the annual practising certificate fee by the last day of December in the year in which it becomes due and payable pursuant to subrule (4) unless the Council decide otherwise.  
  (7) (a) A member who—  
      (i) ceases to be entitled to a practising certificate under the provisions of this rule;  
      (ii) fails to commence public practice within six months from the date of issuance of the practising certificate; or  
      (iii) does not engage in public practice or undertake any public practice service full time,  
      shall automatically cease to have a valid practicing certificate and the member shall return his practising certificate to the Institute within fourteen days from the date of cessation for cancellation of the certificate.  
    (b) The member whose practicing certificate has been cancelled under paragraph (a) may be granted a new practising certificate if he again becomes so entitled under the provisions of this rule.  
  (8) Any member who is in public practice or is engaged in public practice services and who is in a public accounting firm which holds a valid practising certificate issued by the Institute prior to the coming into operation of these rules, shall be entitled to remain in public practice or engage in public practice services pending the issuance of a practising certificate pursuant to this rule.  
  (9) The entitlement under subrule (8) shall only be allowed once the member has made an application for a practising certificate pursuant to subrule (3) by the last day of June in the year these rules come into operation and the member complies with the provisions of the rules.  

General Meetings, Elections, Seal and Accounts

PART III - GENERAL MEETINGS, ELECTIONS, SEAL AND ACCOUNTS

Notice of General Meetings
10. (1) The Council shall cause a notice of each general meeting and annual general meeting of the Institute be given to the members at least twenty-one clear days before such general meeting or annual general meeting specifying the date, time and place of the meeting and the business to be conducted at the meeting. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (2) The notification of such meeting shall be deemed to have been received once the notice has been posted by ordinary mail or dispatched by messenger to the address of the member as stated in the records of the Institute.  
Agenda
11. The agenda of the first general meeting and annual general meeting of the Institute shall include the following: (Subst. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (a) to consider and accept the minutes of the meeting or previous meetings;  
  (b) to adopt the report or the annual report of the Council;  
  (c) to receive the financial statements of the Institute for the year immediately preceding and the report of the auditors;  
  (d) to elect members of the Council for the ensuing year; and  
  (e) any other business of which due notice has been given.  
Notice of motion
12. (1) Any member who wishes to propose any motion before the annual general meeting of the Institute, shall give notice of such motion to the Registrar not less than fourteen days before the date of the annual general meeting.  
  (2) No motion shall be discussed at any annual general meeting of the Institute unless the required notice has been given.  
Quorum
13. (1) One hundred members of the Institute who are entitled to vote shall constitute a quorum for any meeting of the Institute and no business shall be conducted at any meeting unless the quorum is present.  
  (2) If within thirty minutes from the time appointed for the holding of a meeting the quorum is not present, the meeting shall—  
    (a) if convened by the Council on the requisition of members, be dissolved; or  
    (b) if convened by the Council other than on the requisition of members, stand adjourned for not less than one week and not more than four weeks, to be held on such date, at such time and place as the Council may determine and if at such adjourned meeting a quorum is not present within thirty minutes from the time appointed for holding the meeting, the members present shall constitute a quorum and shall have full power to conduct the proposed business of the adjourned meeting.  
Majority decision
14. (1) A question at any meeting of the Institute shall be decided by a majority of the votes of the members present or by their proxies.  
  (2) In the event of an equality of votes, the Chairman of the meeting shall have a casting vote.  
Voting
15. Subject to subsection 16A(2) of the Act, a member who is entitled to vote shall have and may exercise one vote each on any question arising at any meeting of the Institute.  
Proxy
16. Subject to subsection 16A(2) of the Act, votes shall be given by members present and who are entitled to vote or, if a poll is demanded, by such members or proxies appointed by the members.  
Appointment of proxy
17. The appointment of a proxy shall be subject to the following conditions:  
  (a) the instrument of appointing a proxy shall be in the form prescribed by the Council; (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
  (b) the instrument of appointment shall be signed in the presence of another member of the Institute who is entitled to vote at a meeting of the Institute;  
  (c) only a person who is entitled to vote at a meeting of the Institute shall be appointed as a proxy;  
  (d) the proxy may be appointed for a specified meeting and by any adjournment of such meeting; and  
  (e) the proxy shall not be entitled to vote at a meeting of the Institute unless the instrument of appointment has been deposited at the registered office of the Institute not less than forty-eight hours before the time fixed for the meeting.  
Voting and demand for poll
18. (1) Every motion submitted at a meeting of the Institute shall be decided in the first instance by show of hands, and, in the event of an equality of votes, shall be decided on a show of hands or at a poll, the Chairman of the meeting shall have a casting vote in addition to the vote he is entitled as a member.  
  (2) The requirement of a show of hands to decide a motion may be dispensed with if the Chairman of the meeting so directs and at least five of the members present and are entitled to vote agree with the direction of the Chairman.  
  (3) On a declaration of the result of show of hands, the Chairman of the meeting or at least five members present and entitled to vote at the meeting may demand that a poll be taken on a resolution.  
  (4) A declaration by the Chairman of the meeting that a resolution has been carried by a particular majority or not carried by a particular majority shall be conclusive and an entry to that effect shall be entered in the minutes of the proceedings of the Institute.  
Demand for poll shall not prevent other transaction
19. (1) If a poll is demanded under subrule 18(3), it shall be in such manner, time and place as the Chairman of the meeting so directs and may be done at once, after an interval or adjournment or otherwise, and the result of the poll shall be deemed to be the resolution of the meeting.  
  (2) In the event a poll is demanded it shall not prevent the continuance of a meeting for the transaction of any business other than the question on which a poll has been demanded.  
  (3) The party demanding a poll may withdraw the poll.  
  (4) A poll shall not be taken on any resolution relating to the election of a Chairman of a meeting or on the adjournment of a meeting.  
Nomination paper
20. (1) A member shall only be qualified to be elected as a member of the Council if a nomination paper, in such form as may be prescribed by the Council, is lodged with the Registrar not less than thirty-five clear days before the annual general meeting.  
  (2) Without prejudice to the provisions of rule 10 and for the purpose of this rule, the Council shall cause a provisional notice of the date of every annual general meeting to be given to the members at least forty-nine clear days before the annual general meeting.  
  (3) The nomination paper shall be signed by five members qualified to vote for the member nominated at the election and by the person proposed for the nomination, consenting to the nomination and indicating a willingness to serve the Institute.  
Retiring members deemed to be nominated for re-election
21. A member of the Council who retires under the provisions of the Second Schedule to the Act shall, unless he has notified the Registrar of his desire not to offer himself for re-election or unless he is disqualified, be deemed to be duly nominated for re-election.
Nominations for election to Council
22. (1) If the number of persons nominated for election is not more than the number of vacancies, the person so nominated shall, as from the next annual general meeting, be deemed to be duly elected as a member of the Council.  
  (2) If the number of persons nominated for election is more than the number of vacancies, the election shall be conducted by means of ballot papers in the manner provided in these rules.  
Appointment of scrutineers
23. (1) The Council shall, where an election is necessary under subrule 22(2), appoint two scrutineers of whom not more than one may be a member of the Council.  
  (2) If by death, refusal or incapacity the number of scrutineers is less than two, the Council may appoint a member to fill the vacancy.  
Voting in election to Council
24. (1) Subject to subsection 16A(2) of the Act, every member shall be entitled to cast a number of votes as long as it does not exceed the number of vacancies provided under paragraph 8(1)(g) of the Act read together with the provisions of the Second Schedule to the Act.  
  (2) A member shall only be entitled to cast not more than one vote for any one candidate.  
Postal ballot
25. The Registrar shall, not less than twenty-one clear days before the annual general meeting, cause the ballot paper together with the envelope to be posted to each member qualified to vote.  
Completion of ballot paper
26. (1) Every member who votes shall—  
    (a) mark “x” against the name of every candidate he voted for;  
    (b) seal the ballot paper in the envelope provided and endorse his full name and signature on the envelope; and  
    (c) ensure that once the envelope is sealed, endorsed and signed—  
      (i) post or deliver it to the Institute not less than twenty-four hours at the address specified on the sealed envelope before the date and time for the annual general meeting; or  
      (ii) it is placed in the ballot box provided at the venue of the annual general meeting not later than the time specified for the commencement of the meeting.  
  (2) Every sealed envelope received by the Institute in accordance with this rule shall be placed in the ballot box.  
Invalidity of ballot paper
27. Any ballot paper which—  
  (a) has more votes given by the member than the number of candidates to be elected by the member; or  
  (b) does not comply with the provisions of rule 26,  
  shall be deemed null and void.  
Counting of votes by scrutineers
28. (1) The scrutineers shall, as soon as may be practicable after the closing of the voting on the day of the annual general meeting, examine the ballot papers to ascertain that the provisions of subrule 26(1) have been complied with and only then can the ballot papers be counted.  
  (2) The scrutineers shall reject any ballot paper which is not in compliance with the provisions of subrule 26(1).  
  (3) The decision of the scrutineers as to the validity of any ballot paper shall be final.  
  (4) The scrutineers shall inform the Chairman of the meeting of the results of the election and the Chairman shall then announce the results of the election at the meeting.  
  (5) If there is an equality of votes between any candidates, the Chairman may give a casting vote to determine the successful candidate.  
Report by scrutineers
29. (1) The scrutineers shall make and sign a report stating—  
    (a) the total number of ballot papers found in the ballot boxes, the number of ballot papers rejected and grounds for rejection;  
    (b) the total number of votes in favor of each candidate; and  
    (c) the names of those duly elected.  
  (2) The report made shall be handed to the Registrar not later than three clear days after the annual general meeting. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
(3) The report shall, unless otherwise proved to the contrary, be sufficient evidence of the election.
  (4) The ballot papers duly counted in accordance with rule 28 shall be retained at the office of the Institute for a period of sixty clear days from the date the report is handed to the Registrar under subrule (2). (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
Effective date of election
30. The election under these rules shall take effect from the date of the annual general meeting.  
Resignation of member of Council
31. (1) A member of the Council may resign his office by tendering his resignation in writing to the Council.  
  (2) The resignation referred to in subrule (1) shall only take effect on its acceptance by the Council.  
  (3) Once the resignation is accepted, the person shall then cease to be a member of the Council.  
Removal of member of Council
32. (1) The members who are entitled to vote in the election of members of the Council may remove any member of the Council elected under the provisions of paragraph 8(1)(g) of the Act read together with the provisions of the Second Schedule to the Act, from his office before his term expires.  
  (2) The removal of any member of the Council shall be by a resolution passed by two-thirds of those entitled to vote in such election at a general meeting by means of a ballot.  
  (3) A resolution referred to under subrule (2) may not be moved without giving the member of the Council concerned a notice in writing of at least fourteen days before the general meeting of the intention to move a resolution.  
Minister may appoint members of Council
33. If members of the Institute fail at any time to make the necessary elections in accordance with the provisions of paragraph 8(1)(g) of the Act read together with the provisions of the Second Schedule to the Act, the Minister may appoint such persons from amongst the members of the Institute to hold office in the Council.  
Minutes of meetings
34. Proper minutes of all resolutions and proceedings of the Institute shall be recorded and every minute signed by the Chairman of the meeting to which it relates or by the Chairman of a subsequent meeting and shall be sufficient evidence of the resolutions and proceedings of the meetings. (Amd. P.U.(A)258/2002
w.e.f. 28 June 2002)
Control and custody of common seal
35. (1) The Registrar shall have control and custody of the common seal of the Institute under the control and direction of the Council.  
  (2) The common seal shall not be affixed to any instrument except by order of the Council.  
  (3) Every instrument to which the common seal is affixed shall be signed by the President of the Institute or the Vice-President of the Institute, and by the Registrar or a member of the Council nominated in writing by the Council for the purpose.  
Bank accounts and instruments of banking
36. (1) The Council shall have the power by resolution to open a bank account or accounts in the name of the Institute with the bank or banks approved in the resolution.  
  (2) All cheques drawn upon such account or accounts in the amount exceeding ten thousand ringgit shall be signed by the—  
    (a) President of the Institute;  
    (b) Vice-President of the Institute; or  
    (c) Registrar,  
    and by a member of the Council nominated in writing by the Council for the purpose.  
  (3) All cheques drawn upon such account or accounts in the amount not exceeding ten thousand ringgit shall be signed by any one of the employees of the Institute nominated in writing by the Council for the purpose and by any one of the persons referred to in subrule (2).  
  (4) The provisions of subrules (1), (2) and (3) shall also apply accordingly with the necessary modifications in respect of any bank instruments or instructions made for and on behalf of the Institute.  
Investment of funds
37. All funds of the Institute not needed immediately for the ordinary purposes of the Institute may be invested in the name of the Institute in such manner as the Council may, by resolution, decide and the provisions in subrule 36(4) shall apply accordingly.  
Reimbursement to persons who have rendered services to the Institute
38. The Council may pay out of the funds of the Institute such reasonable sums for the expenses reasonably incurred by a person who is not a member of the Institute in rendering his services to the Institute.  


Proceedings of the Council

PART IV - PROCEEDINGS OF THE COUNCIL

Calling of a meeting of Council  
39. A meeting of the Council may at any time be called by order of the President of the Institute or Vice-President of the Institute, or by a request in writing addressed to the Registrar by ten members of the Council.  
Notice of meeting of Council  
40. (1) A written notification of meeting of the Council shall be sent to each member of the Council at least seven clear days before the meeting.  
  (2) In cases where an emergency meeting is being called and certified by the President of the Institute or Vice-President of the Institute, a short notice shall be sufficient.  
Power of Chairman  
41. The Chairman shall have the discretionary power to adjudge any matter raised at the meeting of the Council to be irrelevant to the proceedings of the Council or to close the matter without further discussion.  
Adjournment of meeting of Council  
42. (1) Subject to the provisions of by-laws made by the Council, the Chairman of any meeting of the Council may, with the consent of the meeting, adjourn the meeting from time to time and from place to place.  
  (2) At any adjourned meeting no business shall be transacted other than the business left unfinished at the meeting from which the adjournment took place.  
  (3) No notice need be given of an adjourned meeting unless it is so directed in the resolution for adjournment.  
Minutes of meeting of Council  
43. Proper minutes shall be recorded of all resolutions and proceedings of meetings of the Council and of the committees, and every minute signed by the Chairman of the respective meetings and the records shall be sufficient evidence of the resolutions and proceedings of the meetings.  
Resolution in writing signed by members of Council  
44. Notwithstanding rules 39, 40, 41, 42 and 43, a resolution in writing signed by all the members of the Council shall be as valid and effectual as if it had been passed at a meeting of the Council duly convened and held.  


General

PART V - GENERAL

Appointment of legal adviser  
45. The Council may appoint a legal adviser of the Institute.  
Indemnity clause  
46. (1) The Council may pay out of the funds of the Institute to any member of the Council reasonable traveling and subsistence allowances on each occasion of such member attending a meeting of the Council or any committee or sub-committee of the Council or of the Institute.  
  (2) The President of the Institute, Vice-President of the Institute, any member of the Council or of the Institute and of the committees or sub-committees of the Council or of the Institute, officers, employees or agents of the Institute shall be indemnified by the Institute from all losses and expenses incurred by them in the discharge of their respective duties except such as may be incurred as a result of their own respective willful default.  
Revocation  
47. The Accountants Rules 1972 [P.U.(A)329/72] are revoked.  

SCHEDULE

RULE 5/RULE 9
PRESCRIBED FEES

(a) Registration Fee
  (i) admission fee RM500.00
  (ii) reclasification fee RM100.00
(b) Annual Subscription
  (i) Chartered Accountant RM250.00
  (ii) Licensed Accountant RM250.00
  (iii) Associate Member RM150.00
(c) Practising Certificate Fee RM250.00

Made 24 October 2001
[PP(S) 0.381 Sj.1JLD. 1(34); PN(PU²)229]

ABDUL SAMAD BIN HAJI ALIAS
President,
Malaysian Institute of Accountants

Approved.
Dated 7 November 2001

DR. MAHATHIR BIN MOHAMAD
Minister of Finance