The respondent, a Chartered Accountant, purchased shares in 1997 ...

Disciplinary proceedings: Auditor punished for dishonest conduct involving sale of shares.

November 29, 2024

Case Laws     Indian Laws     HC

The respondent, a Chartered Accountant, purchased shares in 1997 but denied selling them to the complainant, despite admitting his signatures on the share transfer deed. His explanation of signing a blank transfer deed under the pretext of an unrelated share delivery issue lacked credibility. The respondent failed to provide a satisfactory explanation for the four-year delay in applying for duplicate share certificates and continued receiving dividends after the sale, indicating an attempt to benefit from shares he no longer owned. The Disciplinary Committee found the respondent's conduct derogatory and unbecoming of a Chartered Accountant, bringing disrepute to the profession. The High Court upheld the punishment of removing the respondent's name from the Register of Members for six months, finding the decision reasonable and not unduly harsh.

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