ACT, No. 23 OF 2009

23of2009.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
INSTITUTE OF CERTIFIED MANAGEMENT
ACCOUNTANTS OF SRI LANKA
ACT, No. 23 OF 2009
[Certified on 20th April, 2009]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of April 24, 2009
PRINTEDAT THE DEPARTMENTOFGOVERNMENT PRINTING, SRILANKA
TO BEPURCHASED AT THEGOVERNMENT PUBLICATIONSBUREAU, COLOMBO 5
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Institute of Certified Management Accountants 1
of Sri Lanka Act, No. 23 of 2009
[Certified on 20th April, 2009]
L.D.—O 46/2006.
AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF THE INSTITUTE OF
CERTIFIED MANAGEMENTACCOUNTANTS OF SRI LANKA AND OF A
COUNCIL OF THE INSTITUTE WHICH SHALL BE RESPONSIBLE FOR THE
MANAGEMENT OF ITS AFFAIRS; TO PROVIDE FOR THE REGISTRATION OF
MEMBERS OF THE INSTITUTE AND TO SPECIFY CRITERIA FOR AND THE
MAINTENANCE OF PROFESSIONAL STANDARDS AND DISCIPLINE BY
MEMBERS OFTHEINSTITUTE; ANDTOPROVIDEFORMATTERS CONNECTED
THEREWITH OR INCIDENTAL THERETO.
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :—
1. This Act may be cited as the Institute of Certified Short title.
Management Accountants of Sri Lanka Act, No. 23 of 2009.
PART I
CONSTITUTION, OBJECTS AND POWERS OF THE INSTITUTE OF CERTIFIED
MANAGEMENTACCOUNTANTS OF SRI LANKA
2. (1) There shall be established an Institute which shall Establishment of
be called the “Institute of Certified Management Accountants the Institute of
Certified
of Sri Lanka” (hereinafter referred to as the “Institute”)
Management
consisting of the persons who are for the time being members Accountants of
of the Society of Certified Management Accountants of Sri Sri Lanka.
Lanka incorporated under the Societies Ordinance (Chapter
123).
(2) The Institute shall, by the name assigned to it by
subsection (1), be a body corporate and shall have perpetual
succession and a common seal and may sue and be sued in
such name.
3. The general objects for which the Institute is General objects
constituted are hereby declared— of the Institute.
(a) to provide for a professional organization for
management accountants;
2—PL 003704—4,200 (02/2009)
2 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
(b) to promote and develop the study of management
Accountancy; to establish and issue management
Accountancy Standards; and to encourage the
application of correct principles, techniques and
practices of Management Accountancy;
(c) to take necessary steps to promote the profession of
Management Accountancy in its practice to
industry, commerce, education, finance, public
service and information technology;
(d) to conduct a Certified Management Accounting
Program leading to the Professional Management
Accounting qualification and to take steps to
emphasize the importance of such a qualification;
(e) to provide for a post management accounting
qualification for the professional development
of members at both Masters and Doctorate levels;
(f) to monitor the admission of members to the
membership of the Institution;
(g) to undertake and regulate the professional
education and practical training of persons who are
keen to qualify in Management Accountancy and
to approve a Practical Training Scheme to be
followed by the students;
(h) to prescribe and approve courses of study being
conducted by the Institute, taking into
consideration its functions in relation to education,
training and examination;
(i) to conduct examinations for the grant of the
required professional qualifications and to
collaborate with recognized local and foreign
professional and educational Institutions to
promote studies in such institution and to obtain
exemptions and recognition in the field of
Management Accountancy for members of the
Institute;
Institute of Certified Management Accountants 3
of Sri Lanka Act, No. 23 of 2009
(j) to promote, collaborate and assist in the study of
Management Accountancy, at Universities and
other Higher Educational Institutions;
(k) to prescribe the qualifications and disqualifications
applicable for membership to the Institute and to
establish standards of professional conduct and
ethics for members of the Institute;
(l) to organize, supervise and regulate continuing
professional education for the benefit of the
members;
(m) to maintain a library of both print and electronic
media, books and periodicals, relating to
Management Accountancy and related subjects for
the use of members, students and those interested
in the field of Management Accountancy;
(n) to encourage the publication of books and
periodicals relating to Management Accountancy;
(o) to grant scholarships, awards and prizes for those
who excel in the field of Management
Accountancy; and
(p) to award Diplomas and Certificates to the members
of the Institute and to those who fulfill the
conditions prescribed by the Institute.
4. The following persons shall be eligible for Eligibility for
membership of the Institute:— Membership of
the Institute.
(a) any person who passes the qualifying examinations
for membership of the Institute to be conducted by
the Council under this Act and who possess such
practical training as may, from time to time be
prescribed by the Council; or
4 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
(b) any person who is a member of any professional
body of Accountants by whatever name called and
which is approved by rules made by the Council
for the time being, and such Association is, in the
opinion of the Council, an Association of equivalent
status to the Institute.
Classification of 5. (1) The members of the Institute shall comprise Fellow
members. Members and Associate Members.
(2) A student on completion of all examinations of the
Institute and acquiring a minimum of three years of practical
experience in an approved sector as prescribed by the
Council upon application being made to the Council and
payment to the Council of the prescribed fee shall be eligible
for registration as an Associate of the Institute by the
Council. Such member shall upon registration by the Council
as an Associate of the Institute be entitled to use the addition
“ACMA” after his name.
(3) Any Member of the Institute who satisfies the Council
that he has been an Accountant, Management Consultant or
a lecturer in a university established under the Universities
Act, No. 16 of 1978 for not less than five years with a
minimum of three years Senior Managerial or equivalent
experience and who has fulfilled such requirements as may
be prescribed by the Council shall be eligible for registration
as a Fellow of the Institute by the Council. Any person eligible
for registration may forward an application to the Council
for registration along with the prescribed fee. A member
shall, upon registration by the Council as a Fellow of the
Institute, be entitled to use the addition “FCMA” after his
name.
(4) Every member of the Institute who is not registered
under subsection (3) as a Fellow of the Institute shall be an
Associate Member and shall have the right to use the addition
of “ACMA” after his name to indicate that he is an Associate
Member.
Institute of Certified Management Accountants 5
of Sri Lanka Act, No. 23 of 2009
(5) Every Member of the Institute shall be entitled to take
and use the title “Certified Management Accountant (CMA)”.
(6) No person, not being a Member of the Institute shall
take or use the title “Certified Management Accountant
(CMA)” or any addition mentioned in subsections (3) and
(4) above.
6. (1) No person shall take or use any title either by Use of titles and
description or abbreviation or the logo of the Institute, unless logo.
such person is eligible under section 5 and has been
authorized in writing by the Council of the Institute to do so.
(2) Any person who contravenes the provisions of
subsection (1) shall be guilty of an offence.
7. The Institute shall have such powers, duties and Powers &c., of
functions as may reasonably be necessary to carry out its the Institute.
objects and in particular may—
(a) acquire in any manner whatsoever and hold, take
or give on lease or hire, mortgage, pledge, sell or
otherwise dispose of, any movable or immovable
property;
(b) establish and operate management training and
education centres;
(c) conduct, assist, co-ordinate and encourage research
into all aspects of management;
(d) appoint, employ, remunerate and exercise
disciplinary control over its officers and servants;
(e) levy fees or charges for any service rendered by the
Institute;
(f) pay fees or charges for any services rendered to the
Institute;
6 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
(g) import equipment required for the purposes of the
Institute, and receive equipment, funds, and any
other assistance for carrying out the objects of the
Institute;
(h) obtain the services of personnel to carry out the
objects of the Institute;
(i) establish work performance standards for its own
personnel, evaluate such performance and take
reasonable action thereupon;
(j) establish and maintain welfare and recreational
facilities for its employees;
(k) make rules in relation to its officers and servants
including the appointment, training, promotion,
remuneration, disciplinary control, conduct and
grant of leave;
(l) make rules in respect of the general administration
of the Institute;
(m) to issue guidelines and standards in Management
Accounting for the members of the Institute;
(n) to open and operate bank accounts, to borrow money,
to receive grants and donations, and to invest funds;
(o) to defend the intellectual property rights of the
Institute;
(p) to make rules, not inconsistent with the provisions
of this Act for the management of the Institute and
accomplishment of its objects. These rules when
made may be altered, added, amended or rescinded,
in the manner provided for herein.
Institute of Certified Management Accountants 7
of Sri Lanka Act, No. 23 of 2009
8. (1) There shall be a Governing Council (hereinafter Constitution of
referred to as the “Council”) responsible for the management, the Council.
control and administration of the Institute.
(2) The Council shall consist of—
(a) President and Vice-President elected by the
members of the Institute among its membership;
(b) the following ex-officio members:—
(i) the Governor of the Central Bank of Sri Lanka
or his nominee;
(ii) the President of the Institute of Chartered
Accountants of Sri Lanka or his nominee who
is a current member of the Council of the
Institute;
(iii) the Head of the Department of Accounting of
the University of Sri Jayawardanapura or his
nominee; and
(c) three members elected by the members of the
Institute among its membership.
(3) The members of the Council of the Society of Certified
Management Accountants of Sri Lanka holding office on
the day immediately preceding the date of the coming into
operation of this Act, shall be the members of the first Council
of the Institute established herein, and shall hold office for a
period of four years.
(4) Elections for the election of members in terms of
paragraphs (a) and (c) of subsection (2) shall be conducted
in accordance with the rules of the Council.
9. (1) Every member of the Council shall, unless he Term of office
earlier vacates office, hold office for a period of two years of members of
the Council.
from the date of his appointment or election as the case
may be:
8 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
Provided however, that the members appointed under
subsection (3) of section 8 holding office at the expiration
of period of four years from the date referred to in that
subsection shall thereupon vacate office, but shall be eligible
for re-election.
(2) A member of the Council shall vacate office by
resignation therefrom or if he ceases to be a member of the
Institute.
(3) In the event of the death of, or vacation of office by a
member of the Council, another person shall, in accordance
with the provisions of section 7, be appointed or elected, as
the case may be, in place of such member, and shall hold
office during the remaining part of the term of office of such
member.
(4) Any member of the Council who vacates office by
effluxion of time shall be eligible for reappointment or
re-election as a member.
(5) A member of the Council shall be deemed to have
vacated office on failure to attend three consecutive meetings
of the Council unless excused by the Council or upon such
member ceasing to be a member of the Institute.
Acts or 10. No act or proceeding of the Institute shall be deemed
proceedings of to be invalid by reason only of the existence of any vacancy
the Institute
deemed not to in the Council or defect in the appointment of any member
be invalid by of the Council.
reason of any
vacancy or
defect in the
appointment of
a member.
Appointment of 11. It shall be lawful for the Council to appoint an
an Advisory Advisory Board consisting of not more than ten eminent
Board.
persons for a period not exceeding two years. The Council
may, at its discretion, seek the views and advice of the
Advisory Board, but it shall in no way be bound to accept or
execute any such advice.
Institute of Certified Management Accountants 9
of Sri Lanka Act, No. 23 of 2009
12. The Council may from time to time invite Patrons of the
distinguished local or foreign persons of eminence having a Institute.
professional background to serve as Patrons of the Institute.
They shall not be required to pay any entrance fees or annual
subscriptions.
13. All or any of the members of the Council may be Remuneration of
members.
paid such remuneration out of the funds of the Institute as
may be determined by the Council.
14. (1) The meetings of the Council shall be held at Meetings of the
least once a month. Council.
(2) At least seven days notice of every meeting of the
Council shall be given in writing to each of the members,
and such notice shall specify the business to be dealt with at
such meeting.
(3) The President shall summon a special meeting of the
Council within seven days after being requested in writing
to do so by five members of the Council.
(4) The quorum for a general meeting of the Council shall
be three members present in person or by proxy.
(5) Every member who attends a meeting of the Council
shall be paid a fee or re-imbursement of any expenses incurred
in attending such meeting, in such amount as may be
determined by the Council.
(6) The President shall preside at meetings of the Council
and in the absence of the President from any meeting of the
Council a member chosen by the majority of members present
shall preside at such meeting.
(7) If the President is by reason of illness or other infirmity
or absence from Sri Lanka, temporarily unable to perform
the duties of his office the Council may appoint one of the
members to act in his place.
10 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
(8) Where three is an equality of votes on any matter or
thing decided at a meeting of the Council, the President at
such meeting shall, in addition to his vote, have a castingvote.
(9) Subject to the provisions herein contained, the
Council may determine its own procedure for the transaction
of business of the Council.
PART II
APPOINTMENT OF OFFICERS AND SERVANTS OF THE INSTITUTE
Appointment of 15. (1) The Council may appoint to the staff of the
the Chief Institute, a Chief Executive Officer, who shall administer
Executive
Officer of the the affairs of the Institute.
Institute.
(2) The Chief Executive Officer shall exercise, perform
and discharge such powers, duties and functions as may be
delegated to him.
(3) The Council may remove from office the Chief
Executive Officer appointed under subsection (1).
(4) The Chief Executive Officer may be paid such
remuneration as may be determined by the Council.
Powers of the 16. (1) Subject to the other provisions of this Act, the
Institute in Council may—
regard to
appointments to
(a) appoint to the staff of the Institute such other officers
the staff of the
Institute. and servants as may be necessary for the purposes
of the Institute;
(b) dismiss and exercise disciplinary control over the
staff of the Institute;
(c) fix the wages or salaries or other remuneration of
the staff;
(d) determine the terms and conditions of service of
such staff; and
Institute of Certified Management Accountants 11
of Sri Lanka Act, No. 23 of 2009
(e) establish and regulate provident funds and schemes
for the benefit of such staff and make contributions
to any such fund or scheme.
(2) Rules may be made in respect of any one or all matters
specified in subsection (1).
17. (1) The Council may delegate to the Chief Delegation of
Executive Officer any of its powers relating to the powers of the
Council of the
appointment of other officers or servants to the staff of the
Chief Executive
Institute. The conditions of employment including Officer in regard
remuneration of any of the members of the professional staff to appointments.
appointed by the Chief Executive Officer under the powers
delegated to him, shall be determined with the approval of
the Council.
(2) The dismissal, by the Chief Executive Officer or any
officer or servant or any member of the professional staff
of the Institute shall not take effect unless it is approved by
the Council.
18. The Chief Executive Officer with the concurrence Determination
of the Council shall determine the duties of the officers and of duties.
servants of the Institute.
19. (1) The Council may make rules in respect of— Rules.
(a) the classification of membership, fees payable by
each class of member, their admission, withdrawal,
expulsion for non payment of membership fees or
resignation;
(b) appointment, employment and dismissal of various
officers, agents and servants of the Institute, their
powers, duties, functions and conduct and
the payment of remuneration and the regulation
of provident funds and other schemes for their
benefit;
(c) fixing of the student registration fees, annual
subscription, exam fees, lecture fees, prices of study
texts and other publications;
12 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
(d) appointment of committees and sub-committees of
the Council consisting of members of the Council
and the membership of the Institute to deal with
specific subjects and the regulation of the functions
of such committees;
(e) the administration and management of the property
of the Institute;
(f) election of, or vacation of or removal from
office of, the members of the Council and their
resignation, from office, office-bearers and their
powers, duties and conduct;
(g) the procedure to be observed at the summoning
and holding of meetings, Annual General Meetings
and Extraordinary Meetings of the Council and the
Institute, filling of vacancies, notices and agenda
of such meeting, the quorum thereof and the
conduct of business thereat;
(h) the qualifications and disqualifications for
membership of the Council and the Institute;
(i) the setting up of disciplinary committees and
formulation of code of ethics and the exercise of
disciplinary control over the members, disciplinary
procedure and expulsion of members or suspension
of membership; and
(j) the entry criteria for admission of students for the
Certified Management Accountancy (CMA)
Programme.
(2) Every rule made by the Council under paragraphs (f)
to (j) of subsection (1) of section 19 shall be approved by the
Minister.
(3) Every rule made under this section shall be published
in the Gazette.
Institute of Certified Management Accountants 13
of Sri Lanka Act, No. 23 of 2009
PART III
FINANCE
20. (1) The Institute shall have its own Fund. The Fund of
Institute.
(2) There shall be credited to the Fund of the Institute all
sums of money received by the Institute in the exercise,
discharge and performance of its powers, functions and
duties.
(3) The Council may invest moneys of the fund in any
securities issued or guaranteed by the Government of
Sri Lanka.
(4) The Council may maintain, in any approved Bank or
Banks in Sri Lanka, Call, Current, Savings or Deposit
Accounts.
(5) All sums of money required to defray any expenditure
incurred by the Institute in the exercise, performance and
discharge of its powers, duties and functions shall be charged
on the Fund.
21. The financial year of the Institute shall be the Financial year of
calendar year. the Institute.
22. (1) The Institute shall cause proper accounts to be Audit of
kept of its income and expenditure, assets and liabilities accounts.
and all other transactions of the Institute.
(2) The accounts of the Institute shall be audited annually
by a qualified auditor appointed by the Institute.
(3) In this section “qualified auditor” means—
(a) an individual who, being a member of the Institute
of Chartered Accountants of Sri Lanka, or of any
other Institute established by law, possesses a
certificate to practice as an Accountant issued by
the Council of such Institute; or
14 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
(b) a firm of Accountants, each of the resident partners
of which being a member of the Institute of
Chartered Accountants of Sri Lanka or of any other
Institute established by law, possesses a certificate
to practice as an Accountant issued by the Council
of such Institute.
Contracts. 23. (1) Any contract entered with on behalf of the
Institute may be made as follows:—
(a) if made between private persons, would by law be
required to be in writing, may be made on behalf of
the Institute in writing under the common seal of
the Institute;
(b) if made between private persons, would by law be
required to be in writing, signed by the parties to be
charged therewith, may be made on behalf of the
Institute in writing signed by any person or persons
duly authorized thereto by the Institute;
(c) if made between private persons, would by law be
valid though made orally and not reduced into
writing, may be made orally on behalf of the Institute
by any person or persons duly authorized thereto
by the Institute.
(2) A contract made according to this section shall be
effectual in law and shall bind the Institute and all persons
thereto and their legal representatives.
Recovery of 24. Any expense incurred by the Institute in any suit or
expenses prosecution brought by or against the Institute before any
incurred by the
court shall be paid out of the funds of the Institute and any
Institute.
cost paid to be recovered by the Institute in any suit or
prosecution shall be credited to the Fund of the Institute.
Protection of 25. (1) No civil or criminal proceedings shall be
acts done under instituted—
this Act or on
the directions of (a) against the Institute for any lawful act which in
the Institute.
good faith is done or purported to be done by the
Institute under this Act; or
Institute of Certified Management Accountants 15
of Sri Lanka Act, No. 23 of 2009
(b) against any member, officer, servant or agent for
any act which in good faith is done or purported to
be done by such member, officer, servant or agent
under this Act or on the directions of the Council,
as the case may be.
(2) Any expense incurred by any person specified in
subsection (1) in any suit or prosecution brought against
such person before any Court for any act done under this Act
or on the direction of the Institute shall if the Court
determines that such act was done in good faith be paid out
of the Fund of the Institute.
26. No writ against person or property shall be issued No writ to issue
against a member of the Council in any action brought against person
or property of a
against the Institute.
member of the
Council.
27. Every person who commits an offence under this Offences and
Act shall on conviction after trial before a Magistrate be penalties.
liable to imprisonment of either description for a period not
exceeding six months or to a fine not exceeding five hundred
rupees or to both such fine and imprisonment.
28. In the event of any inconsistency between the Sinhala text to
Sinhala and Tamil texts of this Act, the Sinhala text shall prevail in case
of inconsistency.
prevail.

16 Institute of Certified Management Accountants
of Sri Lanka Act, No. 23 of 2009
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