Question ID : 44736

Ethical Board

I am a practicing chartered accountant and an additional director in a private limited company duly complying to the norms prescribed by ICAI. The private limited company has borrowed a vehicle loan from a scheduled bank. The scheduled bank is creating a charge for the loan borrowed and is insisting that the concerned form for creating charge should be signed by affixing the practicing CA digital signature instead of the other directors of the company. Whether the same is permitted according to the ethics prescribed by ICAI and would it not amount to participating in the day to day activities of the company?

The director should sign the form and also the practicing CA or CS should sign. one of the directors can sign and for practicing CA or CS, u are not allowed to sign. It should be signed by any other Practicing CA or CS.