Bill 52 — Second Session, 21St Legislature, 36 Elizabeth Ii the Legislative Assembly of Alberta Bill 52 Certified General Accountants Act (Legislature 21, Session 2)

L21 S2 3099

Alberta — Bills

1987 BILL 52 Second Session, 21st Legislature, 36 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 52 CERTIFIED GENERAL ACCOUNTANTS ACT HON. DR. REID ?F: First Reading Second Reading Committee of the Whole Third Reading Royal Assent

Bill 52 BILL 52 1987 CERTIFIED GENERAL ACCOUNTANTS ACT (Assented to , 1987) Table of Contents

Interpretation '

Part 1 Scope of Practice and Use of Name Exclusive scope ^ Name protection 3 Person under suspension or cancellation 4 Injunction 5

Part 2 Certified General Accountants' Association of Alberta Corporation continued 6 Board 7 Composition of Board 8 Annual report 9

Part 3 Registration Registrar 10 Registers 11 Registration Committee 12 Eligibility for registration as student member 13 Eligibility for registration as certified general accountant 14 Registration Committee decision 15 Application not approved 16 Review by Board 17 Registration of others as certified general accountants 18 Review by Board 19 Annual dues 20 Removal of registration on request 21 Suspension of registration 22 Cancellation of registration 23 Register notations 24 Inspection of names 25

Part 4 Professional Corporations Permit conditions 26 Failure to fulfil conditions 27 Liability 28 Voting rights not transferable 29 Relationship to professional corporation 30 1

Certified general accountant and client relationship 31 Name protection re corporation 32

Part 5 Practice Review Committee Committee established 33 Powers of Committee 34 Requirement to produce records 35 Authority of Committee 36 Costs 37 Suspension or cancellation for non-payment 38 Failure to co-operate in practice review 39

Part 6 Joint Standards Directorate

Definitions 40 Directorate established 41 Authority of Directorate 42 Requirement to produce records 43 Conclusion of review 44 Status of Directorate to appeal 45 Costs 46 Annual report 47 Failure to co-operate in review 48

Part 7 Discipline

Definitions 49 Committee established 50 Hearing committees 51 Unprofessional conduct 52 Complaint 53 Mediation 54 Referral to Professional Conduct Chairman 55 Preliminary investigation 56 Investigator's report considered 57 Complainant's request for review 58 Temporary suspension 59 Representation before hearing committee 60 Notice of hearing 61 Further investigation 62 Evidence 63 Compellable witness 64 Commission evidence 65 Notice to attend and produce records 66 Civil contempt proceedings 67 Proceedings in absence of investigated person 68 Finding of hearing committee 69 Orders of hearing committee 70 Costs and fines 71 Conviction of indictable offence 72 Publication of decision 73 Fine and costs are debt 74 Written decision 75 Service of decision 76 Decision remains in effect 77 Appeals Committee 78 Appeal to Appeals Committee or Board 79 Notice of appeal hearing 80 Representation before appeal hearing 81

Powers of Appeals Committee or Board 82 Decision on appeal 83 Written decision 84 Appeal to Court of Appeal 85 Parties to appeal 86 Appeal on the record 87 Power of Court on appeal 88 Reinstatement 89 Employer to recognize sanctions 90 Notice to employer 91 Proceedings in private 92 Falsely obtained registration 93

Part 8 Offences and Penalties Penalties 94

Part 9 General Certificate of Registrar 95 Protection from liability 96 Service of documents 97 Commissioner for oaths 98 Action for fees 99 Custodian 100 Examination and disposal of property 101 Exemption from municipal licence 102

Part 10 Regulations and By-laws Regulations of Board 103 By-laws of Board 104 Regulations of Lieutenant Governor in Council 105

Part 11 Transitional and Repeal Registration continued 106 Board continued 107 Application continued 108 Discipline proceedings continued 109 Repeal 110 Coming into force 111 HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Interpretation 1(1) In this Act, (a) "audit" means (

i) an independent examination of records for the purpose of expressing an opinion, or (ii) the preparation of a report or certificate or the expression of an opinion as to whether financial information is presented fairly; (b) "Association" means the Certified General Accountants' As sociation of Alberta;

(c) "Board" means the Board of Governors of the Association; (d) "certified general accountant" means an individual who is registered as a certified general accountant and maintains his reg istration in accordance with this Act, the regulations and the by laws, but does not include an individual whose registration is suspended; (e) "exclusive accounting practice" means the performance of an audit or a review, but does not include activities related solely to record keeping, cost accounting or compilation services or the preparation of income tax information; (f) "member of the public" means an individual who is not a member of the Association or of any other accounting organiza tion; (g) "Minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the admin istration of this Act; (h) "permit" means a permit issued pursuant to

section 26; (i) "practice review" means a review of the practice of a certified general accountant or professional corporation; (j) "professional corporation" means a corporation that is the holder of a subsisting permit; (k) "records" includes (

i) an account, book, return, statement, report, correspond ence, financial document, financial statement, working paper, notes or other memorandum of financial or non-financial in formation whether in writing or in electronic form or repre sented or reproduced by any other means, and (ii) the results of the recording of details of electronic data processing systems and programs to illustrate what the sys tems and programs do and how they operate; (1) "register" means the register of certified general accountants, the register of student members or the register of professional corporations, as the context requires; (m) "Registrar" means the Registrar appointed under

section 10; (n) "registration" means the registration of an individual as a certified general accountant or as a student member, as the con text requires; (o) "review" means, except where the context indicates other wise, (

i) an independent review of records, or (ii) the preparation of a report, certificate or comments or the expression of an opinion for the purpose of determining whether financial information ap pears to be presented fairly;

(p) "student member" means an individual who is registered as a student member by the Association; (q) "Universities Co-ordinating Council" means the Universities Co-ordinating Council established under the Universities Act.

(2) In any other enactment enacted or made before, at or after the commencement of this section, a reference to a certified general ac countant, whether referred to as a member of the Certified General Accountants' Association of Alberta, a certified general accountant or otherwise, shall be read as including a professional corporation unless otherwise provided. PARTI SCOPE OF PRACTICE AND USE OF NAME Exclusive scope 2(1) No pcrsou shall engage in or purport to be able to engage in exclusive accounting practice on a fee for service basis unless (

a) he is a chartered accountant or professional corporation as those terms are defined in the Chartered Accountants Act and the Council of the Institute of Chartered Accountants of Alberta has declared its participation and continues to participate in the Joint Standards Directorate, (

b) he is a certified management accountant or professional cor poration as those terms are defined in the Certified Management Accountants Act and the Council of the Society of Management Accountants of Alberta has declared its participation and contin ues to participate in the Joint Standards Directorate, or (

c) he is a certified general accountant or professional corpora tion and the Board of the Certified General Accountants' Asso ciation of Alberta has declared its participation and continues to participate in the Joint Standards Directorate. (2) Subsection (1) does not apply (

a) to a person who engages in exclusive accounting practice under the direct supervision of (

i) a chartered accountant as defined in the Chartered Ac countants Act, (ii) a certified management accountant as defined in the Cer tified Management Accountants Act, or (iii) a certified general accountant, or (

b) to a person who engages in exclusive accounting practice that is not intended to be relied on by third parties. Name protection 3(1) Subjcct to the regulations, no person except a certified general accountant shall (

a) use the name "Certified General Accountant", "Fellow of the Certified General Accountants", "comptables generaux agrees", "Fellow de les comptables generaux agrees" or any other name

or any abbreviation of those words alone or in any combination with any other word, or (

b) use the initials "C.G.A." or "F.C.G.A." or any other initials, either alone or in combination with any other word, letter, sym bol, initial or abbreviation, to represent expressly or by implication that he is a certified general accountant or use any title, name, description, abbreviation, letter or symbol representing the name "Certified General Accountant", "Fel low of the Certified General Accountants", "comptables generaux agrees" or "Fellow de les comptables generaux agrees" or the letters "C.G.A." or "F.C.G.A.".

(2) No person shall use the name "Accredited Public Accountant" or the initials "A.P.A." or any title, name, description, abbreviation, letter or symbol representing that name or those initials, alone or in combination with any other name, title, description, abbreviation, letter, symbol or initials, that represents expressly or by implication that he is an accredited public accountant.

Person under suspension or cancellation Injunction 4 Unless otherwise permitted under this Act, no certified general accountant, professional corporation or student member shall engage in exclusive accounting practice, directly or indirectly, with a person whose registration or permit is under suspension or has been can celled under this Act or the by-laws or any predecessor to this Act. 5 The Court of Queen's Bench, on application by the Association by way of originating notice, may grant an injunction enjoining any person from doing any act that contravenes this Part, notwithstand ing any penalty that may be provided by this Act in respect of the contravention.

Corporation continued Board Coin position of Board

PART 2 CERTIFIED GENERAL ACCOUNTANTS' ASSOCIATION OF ALBERTA 6(1) The Certified General Accountants' Association of Alberta in corporated under the Societies Act is continued as a corporation with the same name.

(2) The Association has the capacity and, subject to this Act, the rights, powers and privileges of a natural person. 7(1) There is hereby established a governing body of the Association called the Board.

(2) The Board shall manage and conduct the business and affairs of the Association and exercise its powers in the name of and on behalf of the Association. 8(1) The Board shall consist of (

a) not fewer than 9 certified general accountants, or a greater number that may be prescribed by or determined in accordance with the by-laws, each of whom shall be elected by and from

Annual report among certified general accountants at the time, in the manner and for the period provided by the by-laws, and (

b) when the number of elected certified general accountants does not exceed 10, 1 member of the public, or when the number of elected certified general accountants is more than 10, 2 members of the public, who shall be appointed by the Minister for a 3-year term of office from a list of members of the public nominated by the Board.

(2) A member of the public appointed to the Board continues to hold office after the expiry of his term until he is reappointed or a successor is appointed.

(3) The Minister may, after consultation with the Board, revoke the appointment of a member of the public appointed to the Board.

(4) The Minister may pay to a member of the public appointed to the Board travelling and living expenses incurred by that member for attendance at a meeting of the Board while away from his usual place of residence, and fees in an amount prescribed by the Minister.

(5) The powers, duties and operation of the Board under this Act, the regulations and the by-laws are not affected by (

a) the fact that no member of the public is appointed as a mem ber of the Board, (

b) the revocation of the appointment of a member of the public, or (

c) the resignation from the Board of a member of the public.

(6) The failure of a member of the public appointed to the Board to attend a meeting of the Board does not affect or restrict the Board from exercising any powers or performing any duties under this Act, the regulations or the by-laws at that meeting. 9(1) The Board shall submit annually to the Minister, in a form satisfactory to him, a report on those matters of the business and affairs of the Association that the Minister requires.

(2) The Minister shall, on receipt of the annual report of the Asso ciation, lay it before the Legislative Assembly if it is then sitting, and if it is not then sitting, within 15 days of the commencement of the next ensuing sitting. Registrar Registers

PART 3 REGISTRATION 10 There shall be a Registrar of the Association appointed in ac cordance with the by-laws. 11(1) There is hereby established a register of certified general ac countants in which shall be entered the names of individuals who are approved for registration as certified general accountants and thereupon become members of the Association.

Registration Committee Eligibility for registration as student member

(2) There is hereby established a register of student members in which shall be entered the names of individuals who are approved for reg istration as student members.

(3) The Registrar shall maintain, in accordance with the by-laws, and subject to the direction of the Board, (

a) the registers described in this section, and (

b) a register for each other class or category of membership established under the by-laws. 12(1) There is hereby established a Registration Committee consist ing of those certified general accountants appointed in accordance with the by-laws.

(2) The Registration Committee shall consider and decide on appli cations for registration under sections 13 and 14 and shall undertake any other functions and duties as directed by the Board.

(3) The Registration Committee may delegate its authority under this Act, the regulations and the by-laws to a Registrar. 13 An application for registration as a student member shall be considered within 90 days after receipt by the Registration Commit tee of a complete application and shall be approved by the Registra tion Committee if the applicant (

a) produces documentation satisfactory to the Registration Committee showing that (

i) he meets the academic requirements prescribed in the reg ulations, or (ii) the Universities Co-ordinating Council is satisfied that his academic qualifications, at the time they were acquired, were at least equivalent to those required for registration under subclause (i), (

b) is a Canadian citizen or is lawfully admitted into Canada for permanent residence, (

c) establishes himself to be of good character and reputation, (

d) establishes that his name has not been removed for cause from the register of any accountants' institute, society, associa tion, college or similar body in Canada or elsewhere, (

e) meets any other requirements prescribed in the regulations, and (

f) pays the fees in accordance with the by-laws. Eligibility for registration as certified general accountant 14(1) An application for registration as a certified general accountant shall be considered within 90 days after receipt by the Registration Committee of a complete application and shall be approved by the Registration Committee if the applicant 8

Registration Committee decision (

a) produces documentation satisfactory to the Registration Committee showing that (

i) he meets the requirements set out in

section 13(a)(

i) or (ii), as the case may be, and (ii) he has successfully completed the examinations pre scribed in the regulations, (

b) meets the term of service and other requirements prescribed in the regulations, (

c) is a Canadian citizen or is lawfully admitted into Canada for permanent residence, (

d) establishes himself to be of good character and reputation, (

e) establishes that his name has not been removed for cause from the register of any accountants' institute, society, associa tion, college or similar body in Canada or elsewhere, and (

f) pays the fees in accordance with the by-laws.

(2) The Universities Co-ordinating Council and the Board may enter into an agreement respecting the examinations referred to in subsec tion (l)(a)(ii). 15(1) If the Registration Committee approves an application for reg istration as a student member, the applicant shall be registered in accordance with the regulations and the by-laws.

(2) If the Registration Committee approves an application for regis tration as a certified general accountant, the Registration Committee shall cause the name of the applicant to be registered in the register of certified general accounts and the applicant thereupon becomes a certified general accountant.

(3) On entering the name of an applicant in the register of certified general accountants, the Registration Committee shall issue a certif icate of registration to the applicant. 16 If the Registration Committee does not approve an application for registration as a student member or certified general accountant, the Registration Committee shall (

a) notify the applicant in writing giving reasons for its decision, (

b) if the applicant does not meet the academic requirements referred to in

section 13(

a) or 14(l)(a), as the case may be, refer the applicant to the Universities Co-ordinating Council for direc tion respecting the courses or examinations, or both, that the Universities Co-ordinating Council considers necessary, and (

c) if the Registration Committee is not satisfied that the appli cant meets the term of service, character, reputation or other requirements referred to in

section 13 or 14(1), as the case may be, notify the applicant of his right to a review by the Board. Review by Board 17(1) An applicant whose application for registration as a student member or certified general accountant is not approved by the Reg istration Committee may, within 30 days of receipt of a notice of Application not approved

refusal or within 30 days of a deemed refusal, request the Board in wnting to review the decision, specifying the reasons for the request.

(2) For the purposes of subsection (1), if the Registration Committee fails to make a decision in respect of an application for registration within 90 days of the date on which an applicant provides the com plete application, the application shall be deemed to have been re fused.

(3) On receipt of a request for a review under subsection (1), the Board shall review the applicant's application for registration or ap point a special committee of Board members to do so.

(4) An applicant who requests a review pursuant to subsection (1) (

a) shall be notified in writing by the Board of the date, place and time when the Board or a special committee of the Board will review the applicant's application, and (

b) is entitled to appear with counsel and make representations to the Board or a special committee of the Board at the review of his application.

(5) A member of the Registration Committee who is also a member of the Board or special committee of the Board may participate in but shall not vote on a decision of the Board.

(6) On reviewing an application under this section, the Board or special committee of the Board may make any decision the Registra tion Committee could have made and shall notify the applicant of its decision. Registration of 18(1) In this scction and

section 19, "Special Registrations Commit- generir'' '^^'^' ^^ tcc" mcans 3. committcc established to review applications for reg- accountants istration uudcr this section, consisting of not fewer than 3 members of the Board appointed by the Board.

(2) A person is not eligible to apply for registration as a certified general accountant under this

section if (

a) he is (

i) a chartered accountant as defined in the Chartered Ac countants Act, or (ii) a certified management accountant as defined in the Cer tified Management Accountants Act, or (

b) at any time prior to his application under this

section he was a member of the Institute of Chartered Accountants of Alberta or the Society of Management Accountants of Alberta.

(3) Notwithstanding

section 14, the Special Registrations Committee shall approve an application for registration as a certified general accountant if the applicant (

a) satisfies the Special Registrations Committee (

i) that he has earned in any 12-month fiscal period ending in the 2 years before July I, 1987, from engaging in exclusive 10

accounting practice, annual fees in an amount not less than the amount prescribed in the regulations, or (ii) that the amount of fees that he earned from engaging in exclusive accounting practice in any 12-month fiscal period ending in the 2 years before July 1, 1987 was more than 50% of the gross annual fees earned by him from his total practice in the same fiscal year as a full-time practitioner, (

b) applies for registration as a certified general accountant under this

section not later than 2 years after this

section comes into force, (

c) is a Canadian citizen or is lawfully admitted into Canada for permanent residence, (

d) establishes himself to be of good character and reputation, (

e) establishes that his name has not been removed for cause from the register of any accountants' institute, society, associa tion, college or similar body in Canada or elsewhere, and (

f) pays the fees in accordance with the by-laws.

(4) An applicant for registration under this

section who has practised as a partner in a public accounting practice prior to his application may satisfy the Special Registrations Committee that he meets the requirements of subsection (3)(

b) if he uses as the basis of his calcu lations the average annual fees per partner in the public accounting practice.

(5) If the Special Registrations Committee approves an application for registration under this section, the Registrar shall cause the name of the applicant to be registered in the register of certified general accountants and the applicant thereupon becomes a certified general accountant.

(6) On entering in the register of certified general accountants the name of an applicant under this section, the Registration Committee shall issue a certificate of registration to the applicant.

(7) If the Special Registrations Committee does not approve an ap plication under this section, the Special Registrations Committee shall (

a) notify the applicant in writing giving reasons for its decision, and (

b) notify the applicant of his right to a review by the Board. Review by Board 19(1) An applicant whose application under

section 18 for registra tion as a certified general accountant is not approved by the Special Registrations Committee may, within 30 days of receipt of a notice of refusal or within 30 days of a deemed refusal, request the Board in writing to review the decision, specifying the reasons for the re quest.

(2) For the purposes of subsection (1), if the Special Registrations Committee fails to make a decision under

section 18 within 90 days of the date on which an applicant provides the complete application, the application shall be deemed to have been refused. 11

Annual dues Removal of registration on request Suspension of registration Cancellation of registration

(3) On receipt of a request for a review under subsection (1), the Board shall review the applicant's application for registration.

(4) An applicant who requests a review pursuant to subsection (1) (

a) shall be notified in writing by the Board of the date, place and time when the Board will review the applicant's appHcation, and (

b) is entitled to appear with counsel and make representations to the Board at the review of his application.

(5) A member of the Special Registrations Committee who is also a member of the Board may participate in but shall not vote on a decision of the Board under this section.

(6) On reviewing an application under this section, the Board may make any decision the Special Registrations Committee could have made and shall notify the applicant and the Special Registrations Committee of its decision.

(7) The Board may assess a fee against an applicant who requests a review under subsection (1) to cover the operating costs of the Board pursuant to this section. 20(1) Unless the Board otherwise provides, a certified general ac countant and a student member shall pay to the Association annual dues at the time and in the manner prescribed in the by-laws.

(2) The registration of a certified general accountant or student member who fails to pay annual dues in accordance with the by-laws may be suspended or cancelled in accordance with the by-laws. 21 A certified general accountant may make a written request to the Registrar that his name be removed from the register of certified general accountants and the Registration Committee may, on receipt of the certified general accountant's certificate of registration, direct that his name be removed from the register. 22(1) The registration of a certified general accountant or student member and the permit of a professional corporation are suspended when a decision to suspend the registration or permit is made in accordance with this Act and the by-laws.

(2) The Registrar shall, after a decision to suspend a registration or permit is made, enter a memorandum of the suspension in the ap propriate register indicating (

a) the period of the suspension or the conditions to be met be fore a suspension is removed, if any, and (

b) the reason for the suspension, and provide notice of the suspension to the person whose registration or permit is suspended. 23(1) The registration of a certified general accountant or student member and the permit of a professional corporation are cancelled when a decision to cancel the registration or permit is made in ac cordance with this Act and the by-laws. 12

(2) The Registrar shall, after a decision to cancel a registration or permit is made, remove the name of the person whose registration or permit is cancelled from the appropriate register and provide no tice of the cancellation to the person whose registration or permit is cancelled.

(3) A person who is notified that his registration or permit is sus pended or cancelled shall forthwith return his certificate of member ship or permit, as the case may be, to the Registrar. Register 24 The Registrar shall not enter, remove or re-enter a name or notations memorandum in a register under this Act except in accordance with this Act, the regulations and the by-laws. Inspection 25 The Registrar shall maintain and, during regular office hours, of names permit any person to inspect a list of names of (

a) certified general accountants, (

b) student members, (

c) professional corporations, and (

d) persons registered in any other class or category of member ship established under the by-laws.

PART 4 PROFESSIONAL CORPORATIONS Permit 26(1) The Registrar shall issue a permit to a corporation that conditions (

a) files an application in the form prescribed by the Board; (

b) pays the fees prescribed in the by-laws; (

c) satisfies the Registrar that it is a corporation in good standing with the Registrar as defined in the Business Corporations Act; (

d) satisfies the Registrar that the corporation, by law or by vir tue of its incorporating documents, has the capacity to carry on the business and exercise the powers set out in the by-laws; (

e) satisfies the Registrar that the name of the corporation is in accordance with the by-laws and contains the words "Profes sional Corporation"; (

f) satisfies the Registrar that the legal and beneficial ownership of all the issued shares of the corporation is vested in 1 or more certified general accountants and that all of the directors of the corporation are certified general accountants; (

g) satisfies the Registrar that (

i) a person who will carry on practice as a certified general accountant on behalf of the corporation is a certified general accountant, and (ii) a person who is employed or engaged by a professional corporation is under the direction or supervision of a certified general accountant. 13

Failure to fulfil conditions

(2) A permit is valid for the period stated on it.

(3) A permit may be suspended or cancelled or its renewal may be withheld by the Registrar in accordance with the by-laws if any of the conditions specified in subsection (1) cease to be fulfilled.

(4) When the Registrar issues a permit to a corporation, he shall enter the name of the corporation in the register of professional cor porations operated and maintained in accordance with the by-laws. 27(1) If a professional corporation ceases to fulfil any condition specified in

section 26 by reason only of (

a) the death of a certified general accountant, or (

b) the cancellation, suspension or removal from the register of the registration of a certified general accountant, who is a shareholder of the corporation, the professional corporation has a period of 90 days from the date of the death, cancellation, suspension or removal, as the case may be, in which to fulfil the condition, failing which the permit is automatically terminated effec tive on the expiration of the 90-day period, without the necessity of an order of the Board.

(2) In the event of the death of a certified general accountant, the Board may in writing order that the 90-day period provided for in subsection (1) be extended for a further period that it considers rea sonable. 28(1) Notwithstanding anything to the contrary in the Companies Act or the Business Corporations Act, every person who is a share holder of a corporation (

a) during the time that it is the holder of a permit, or (

b) during the time that it practises in contravention of this Act or a predecessor of this Act, is liable to the same extent and in the same manner as if the share holders of the corporation were, during that time, carrying on the business of the corporation as a partnership or, when there is only 1 shareholder, as an individual practising as a certified general accoun tant.

(2) The liability of a person in carrying on the practice of a certified general accountant is not affected by the fact that the practice of a certified general accountant is carried on by the person as an em ployee and on behalf of a professional corporation. Voting rights not 29 No shareholder of a professional corporation shall enter into a transferable voting trtist agreement, proxy or any other type of agreement vesting in another person who is not a certified general accountant the au thority to exercise the voting rights attached to any or all of his shares.

Relationship to 30 The relationship of a certified general accountant to a profes- comoratlon sional corporation, whether as shareholder, director, officer or em ployee, does not affect, modify or diminish the application to him of this Act, the regulations and the by-laws. Liability 14

Certified general 31(1) Nothing Contained in this Part affects, modifies or limits any anTcHen^ l^w applicable to the fiduciary, confidential and ethical relationships relationship bctwccn a Certified general accountant and a person receiving the professional services of a certified general accountant.

(2) The relationship between a professional corporation engaging in practice as a certified general accountant and a person receiving the professional services of the corporation is subject to all applicable laws relating to the fiduciary, confidential and ethical relationships between a certified general accountant and his client. Name protection re corporation 32 No person shall engage in practice as a certified general accoun tant under any name containing the words "Professional Corpora tion" or the abbreviation "PC." unless that person is incorporated and the holder of a subsisting permit, and a person engaging in prac tice as a certified general accountant in contravention of this

section is guilty of an oflfence and liable to a fine not exceeding $100 for every day on which that name or title is used.

PART 5 PRACTICE REVIEW COMMITTEE Committee established 33 There is hereby established a Practice Review Committee con sisting of not fewer than 3 certified general accountants appointed by the Board. Powers of 34 The Practice Review Committee may Committee (

a) conduct or oversee a practice review in accordance with the by-laws; (

b) determine whether the standards of the profession are being complied with; (

c) engage in any matter that the Committee or the Board con siders necessary or appropriate with respect to the maintenance and improvement of competence in practice as a certified general accountant. Requirement to 35(1) A pcrsou couducting a practicc review may require a certified pro uce recor s gg^gj-^j accouutant, profcssional corporation or student member or an employer or employee, if applicable, of any of them to produce to him any records in his possession or under his control.

(2) The Association may apply ex parte to the Court of Queen's Bench for an order (

a) directing a person described in subsection (1) to produce to the person conducting a practice review any records in his pos session or under his control if it is shown that the person de scribed in subsection (1) failed to produce them when required by the person conducting the practice review, or (

b) directing any person to produce to the person conducting a practice review any records in his possession or under his control that are or may be related to the practice review. 15

Authority of Committee Costs 36 After each practice review, the Practice Review Committee may (

a) make recommendations to a certified general accountant or professional corporation relating to his or its practice; (

b) direct a further practice review at the times and for the pur pose prescribed by it; (

c) assess and levy the costs of any practice review in accordance with the by-laws against the certified general accountant or professional corporation in respect of whom the review was con ducted; (

d) if it is of the opinion that

an act or omission of a certified general accountant, professional corporation or student member may constitute unprofessional conduct, refer the act or omission to the Registrar as a complaint under

Part 7. 37 Costs ordered to be paid by a certified general accountant or professional corporation under this Part are a debt due to the Asso ciation and may be recovered by the Association by civil action for debt. Suspension or cancellation for non-payment Failure to co-operate in practice review 38 The registration of a certified general accountant who or the permit of a professional corporation that does not pay costs assessed or levied under

section 36(

c) in accordance with the direction of the Practice Review Committee may be suspended or cancelled in ac cordance with the by-laws. 39 The failure or refusal of a certified general accountant, profes sional corporation or student member to co-operate in a practice review under this Part may be held to be unprofessional conduct.

PART 6 JOINT STANDARDS DIRECTORATE

Definitions Directorate established 40 In this Part, (a) "accountant" means a member of (

i) the Institute of Chartered Accountants of Alberta and in cludes a professional corporation as defined in the Chartered Accountants Act, (ii) the Certified General Accountants' Association of Alberta and includes a professional corporation, or (iii) the Society of Management Accountants of Alberta and includes a professional corporation as defined in the Certified Management Accountants Act; (b) "Directorate" means the Joint Standards Directorate. 41(1) There is established under this Act, the Certified Management Accountants Act and the Chartered Accountants Act one Joint Stand ards Directorate for the purposes under this Part of all of the ac counting organizations named in

section 40(a). 16

(2) The Directorate shall consist of (a) 1 member of each of the Institute of Chartered Accountants of Alberta, the Certified General Accountants' Association of Alberta and the Society of Management Accountants of Alberta, appointed by the respective organization, whose governing body has declared its participation and continues to participate in the Joint Standards Directorate; (

b) not more than 7 and not fewer that 5 other members, ap pointed by the Minister on a prorated basis from the organiza tions named in clause (

a) whose governing bodies have declared their participation and continue to participate in the Joint Stand ards Directorate, based on the number of members in each or ganization who engage in exclusive accounting practice; (c) 3 members of the public appointed by the Minister.

(3) A member of the public appointed to the Directorate continues to hold office after the expiry of his term until he is reappointed or a successor is appointed.

(4) The Minister may revoke the appointment of a member ap pointed to the Directorate by the Minister.

(5) The Minister may pay to a member of the public appointed to the Directorate travelling and living expenses incurred by that mem ber for attendance at a meeting of the Directorate while away from his usual place of residence, and fees in an amount prescribed by the Minister.

(6) The failure of a member of the public appointed to the Director ate to attend a meeting of the Directorate does not affect or restrict the Directorate from exercising any powers or performing any duties under this Act, the regulations or the by-laws at that meeting. Authority of 42(1) Subjcct to subscction (2), the Directorate may conduct or over- ^" see a review of the practice of an accountant in order to determine whether the standards of the profession of accounting are being com plied with.

(2) The Directorate may exercise its authority under subsection (1) in respect of only (

a) an accountant who engages in exclusive accounting practice, (

b) any aspect of exclusive accounting practice, and (

c) any aspect of the practice of an accountant that relates to exclusive accounting practice.

(3) The Directorate may enter into an agreement with an accounting organization named in

section 40(

a) authorizing the accounting or ganization to conduct reviews of practices of persons who are mem bers of the accounting organization, and the Directorate shall oversee the conduct of any reviews carried out pursuant to this subsection. (4) Subsection (2) applies to an accounting organization that is au thorized to conduct reviews of practices pursuant to an agreement described in subsection (3). 17 Directorate

Requirement to produce records Conclusion of review Status of Directorate to appeal Costs 43(1) The Directorate may require (

a) an accountant or a student of an accounting organization named in

section 40(a), or (

b) an employer or employee, if applicable, of a person referred to in clause (

a) to produce to the Directorate any records in his possession or under his control.

(2) The Directorate may apply ex parte to the Court of Queen's Bench for an order (

a) directing a person referred to in subsection (1) to produce to the Directorate any records in his possession or under his control if it is shown that the person referred to in subsection (1) failed to produce them when required, or (

b) directing any person to produce to the Directorate any rec ords in his possession or under his control that are or may be related to the review being conducted. 44(1) After each review of a practice, the Directorate may (

a) make recommendations to an accountant relating to his prac tice; (

b) direct a further review of a practice at the times and for the purpose prescribed by it; (

c) refer a complaint relating to the practice of an accountant to the accounting organization named in

section 40(

a) of which the accountant is a member.

(2) On the conclusion of an inquiry by an accounting organization to which a complaint has been referred under subsection (l)(c), the accounting organization to which the complaint was referred shall provide to the Directorate a report indicating the disposition of the matter and the reasons. 45(1) On receiving a report pursuant to

section 44(2), the Directorate may in accordance with subsection (2) cause the matter to be ap pealed to any body or court having jurisdiction to hear the appeal, in accordance with this Act, the Chartered Accountants Act or the Certified Management Accountants Act, as the case may be.

(2) No appeal may be commenced by the Directorate under subsec tion (

I) unless the decision to appeal is a unanimous decision of the Directorate. 46(1) The Directorate may assess and levy its costs of operation against the accounting organizations named in

section 40(

a) in ac cordance with the regulations of the Lieutenant Governor in Council.

(2) Costs assessed and levied pursuant to subsection (1) are a debt due to the Directorate and may be recovered by the Directorate by civil action for debt. 18

Annual report 47 The Directorate shall submit annually to the Minister and to each accounting organization named in

section 40(a), in a form sat isfactory to the Minister, a report including (

a) a

summary of the reviews conducted in the year to which the report relates and the outcomes of the reviews, and (

b) any other matter that the Minister requires. Failure to co- 48 The failure or refusal of a certified general accountant, profes- operate in review ^^Q^Q^ corporatiou or studont member to co-operate in a review of a practice under this Part may be held to be unprofessional conduct,

PART 7 DISCIPLINE

Definitions Committee established 49 In this Part, (a) "complaint" means a complaint made in writing about the conduct or alleged conduct of a certified general accountant, professional corporation or student member, signed by the per son making it; (b) "conduct" includes

an act or omission; (c) "hearing committee" means a hearing committee estabhshed in accordance with

section 51; (d) "investigated person" means (

i) a certified general accountant, professional corporation or student member, or (ii) in a case to which

section 53(2) applies, a former certified general accountant, former professional corporation or for mer student member with respect to whose conduct an investigation is conducted or a hearing is held under this Part; (e) "investigator" means the person appointed by the Profes sional Conduct Chairman to conduct a preliminary investigation under this Part, or the Professional Conduct Chairman if he con ducts the preliminary investigation personally; (0 "Professional Conduct Chairman" means the chairman of the Professional Conduct Committee and includes a vice-chairman. 50(1) There is hereby established a committee called the Profes sional Conduct Committee composed of (

a) not fewer than 5 certified general accountants appointed by the Board in accordance with the by-laws, and (b) 1 member of the public appointed by the Minister from a list of members of the public nominated by the Board.

(2) A member of the public appointed to the Professional Conduct Committee continues to hold office after the expiry of his term until he IS reappointed or a successor is appointed. 19

Hearing committees Unprofessional conduct Complaint

(3) The Minister may pay to a member of the public appointed to the Professional Conduct Committee travelling and living expenses incurred by that member for attendance at a meeting of the Com mittee away from his usual place of residence and fees in an amount prescribed by the Minister.

(4) The Minister may, after consultation with the Board, revoke the appointment of the member of the public appointed to the Profes sional Conduct Committee.

(5) The powers, duties and operation of the Professional Conduct Committee under this Act, the regulations and the by-laws are not affected by (

a) the fact that no member of the public is appointed as a mem ber of the Committee, (

b) or the revocation of the appointment of a member of the pubhc. (

c) the resignation from the Committee of the member of the public.

(6) Subject to the by-laws prescribing a quorum, the failure of the member of the public appointed to the Professional Conduct Com mittee to attend a meeting of the Committee does not affect or re strict the Committee from exercising any powers or performing any duties under this Act, the regulations or the by-laws at that meeting. 51 The Board may establish any hearing committees it requires, each composed of not fewer than 3 certified general accountants ap pointed by the Board in accordance with the by-laws. 52 Any conduct of a certified general accountant, professional cor poration or student member that, in the opinion of a hearing com mittee, (

a) is detrimental to the best interest of the public or members of the Association, (

b) contravenes this Act, the regulations or the by-laws, (

c) harms or tends to harm the standing of the profession of accounting generally, or (

d) displays a lack of knowledge of or lack of skill or judgment in practice as a certified general accountant, whether or not that conduct is disgraceful or dishonourable, may be found by a hearing committee to constitute unprofessional conduct. 53(1) A person may make a complaint to the Registrar and the com plaint shall be dealt with in accordance with this Part.

(2) If, after the registration of a certified general accountant or stu dent member is removed, suspended or cancelled or the permit of a professional corporation is removed, suspended or cancelled under this Act or the by-laws, (

a) a complaint is made about the former certified general ac countant, student member or professional corporation, and 20

Mediation Referral to Professional Conduct Chairman Preliminary investigation (

b) the complaint relates to conduct occurring before the re moval, suspension or cancellation occurred, the complaint may be dealt with within 2 years following the date of removal, suspension or cancellation as if the removal, suspension or cancellation had not occurred. 54(1) A person designated by the Board as a mediator may assist in settling a complaint made to the Registrar if the complainant and the certified general accountant, professional corporation or student member about whose conduct the complaint is made agree.

(2) If, within 45 days of the date of receipt of a complaint by the Registrar, or a longer period agreed to by the persons concerned, a settlement of the complaint does not occur, or in the mediator's opinion is not likely to occur, the mediator shall forward the com plaint to the Professional Conduct Chairman forthwith. 55(1) If mediation is not agreed to by the persons referred to in

section 54(1), the Registrar shall refer the complaint to the Profes sional Conduct Chairman forthwith.

(2) Notwithstanding that a settlement is reached under this

section or that a complaint is withdrawn, the Registrar may refer the com plaint to the Professional Conduct Chairman. 56(1) The Professional Conduct Chairman shall, within 60 days after receiving a complaint, commence a preliminary investigation of the complaint or appoint a person to conduct the preliminary investiga tion.

(2) An investigator may require the investigated person or any other certified general accountant, professional corporation or student member to produce to him any records in his possession or under his control and may require the attendance at the investigation of the certified general accountant, professional corporation or student member who is the subject of the complaint and any other certified general accountant, professional corporation or student member or an employer or employee of any of them.

(3) The Association may apply ex parte to the Court of Queen's Bench for an order (

a) directing a person referred to in subsection (2) to produce to an investigator any records in his possession or under his control if it is shown that the person failed to produce them when re quired by the investigator, or (

b) directing any person to produce to an investigator any rec ords that are or may be relevant to a complaint being investi gated.

(4) If a certified general accountant, professional corporation or stu dent member does not co-operate with an investigator, the investi gator may make a complaint and the failure or refusal to co-operate may be held to be unprofessional conduct.

(5) An investigator may investigate any other matter relating to the conduct of the investigated person that arises in the course of a pre- 21

liminary investigation whether associated with the original complaint or investigation or not.

(6) If a person other than the Professional Conduct Chairman is the investigator, that person shall, on concluding the preliminary inves tigation, report to the Professional Conduct Chairman. invesiigator-s^^^^ 57(1) The Professional Conduct Chairman, on concluding a prelim- report const ere ^^^^ investigation and a report or on receiving a report under sec tion 56(6), shall refer the report to the Professional Conduct Com mittee.

(2) The Professional Conduct Committee shall consider the report and shall (

a) refer the matter to a hearing committee, or (

b) if it is of the opinion that (

i) the complaint is frivolous or vexatious, or (ii) there is insufficient evidence of unprofessional conduct to warrant a referral to a hearing committee under this Part, direct that no further action be taken.

(3) A member of the Professional Conduct Committee may partici pate in and vote on a decision made under subsection (2), notwith standing that he may have conducted the preliminary investigation of the complaint.

(4) The Professional Conduct Committee shall cause to be served on the investigated person a notice that no further action will be taken or that the matter has been referred to a hearing committee, as the case may be, and the complainant, if any, shall be notified accord ingly. Complainant's request for review 58(1) A complainant may, within 30 days of receipt of a notice that no further action will be taken on a complaint, by notice in writing to the Registrar, request a review of the decision by the Professional Conduct Committee.

(2) The Professional Conduct Committee shall review its decision on receipt of a request to do so under subsection (1) and shall deter mine whether (

a) the complaint is frivolous or vexatious, or (

b) there is insufficient evidence of unprofessional conduct to warrant a referral to a hearing committee under this Part, and shall notify the complainant and the investigated person in writ ing of its decision.

(3) In coming to a decision under subsection (2), the Professional Conduct Committee shall invite the complainant and the investi gated person to attend before the Committee and make representa tions to it. 22

Temporary suspension Representation before hearing committee

(4) If the Professional Conduct Committee determines that a com plaint is frivolous or vexatious, it may order the costs of the prelim inary investigation and the review under this

section (

a) to be paid in accordance with the by-laws, if the complainant is a certified general accountant, professional corporation or stu dent member, or (

b) to be paid in accordance with the regulations, if the com plainant is any other person. 59(1) Notwithstanding anything in this Act, the Professional Con duct Chairman may suspend the registration of a certified general accountant or student member or the permit of a professional cor poration pending the conclusion of a preliminary investigation or the decision of a hearing committee.

(2) An investigated person whose registration or permit, as the case may be, is suspended under subsection (1) may, by filing an originat ing notice with the Court of Queen's Bench and serving a copy on the Registrar, apply for an order staying the decision of the Profes sional Conduct Chairman until the conclusion of a preliminary in vestigation or the decision of a hearing committee. 60(1) The investigated person may be represented by counsel at a hearing before a hearing committee.

(2) A hearing committee and the Association may each be repre sented by counsel at a hearing before a hearing committee.

(3) If an investigated person requests that a proceeding before a hear ing committee be held in public, that proceeding shall be held in public. Notice of hearing 61(1) A hearing committcc shall, on referral to it of a matter in accordance with this Act, investigate the matter and hold a hearing.

(2) A hearing under subsection (1) shall be commenced within 120 days of the date on which the matter is referred to the hearing com mittee or within such other period as may be prescribed by the Board.

(3) At least 15 days before the date set for a hearing, the Registrar shall serve on the investigated person a notice of the hearing stating the date, time and place that the hearing committee will hold a hear ing and giving reasonable particulars of the matter in respect of which the hearing will be held. 62 If any other matter concerning the conduct of the investigated person arises in the course of a preliminary investigation or hearing, the hearing committee may investigate and hear the matter, but in that event the hearing committee shall declare its intention to hear the further matter and shall permit the investigated person reason able opportunity to prepare his answer to the further matter. 63 Evidence may be given before a hearing committee in any man ner that the hearing committee considers appropriate, and the hear ing committee is not bound by the rules of law respecting evidence appHcable to judicial proceedings.

Further investigation Evidence 23

Compellable witness Commission evidence Notice to attend and produce records Civil contempt proceedings 64(1) The investigated person and any other person who, in the opinion of the hearing committee, have knowledge of the matter being heard are compellable witnesses in any proceeding under this Part.

(2) A witness may be examined under oath on anything relevant to the investigation or hearing before a hearing committee and shall not be excused from answering any question on the ground that the an swer might tend to (

a) incriminate him, (

b) subject him to punishment under this Part, or (

c) establish his liability (

i) to a civil proceeding at the instance of the Crown or of any other person, or (ii) to prosecution under any Act, but if the answer so given tends to incriminate him, subject him to punishment or establish his liability, it shall not be used or received against him in any civil proceedings, in a prosecution under

Part 8 or in any proceedings under any other Act, except in a prosecution for or proceedings in respect of perjury or the giving of contradictory evidence. 65 For the purpose of obtaining the testimony of a witness who is out of Alberta, a judge of the Court of Queen's Bench, on an ex parte application by the Association, may direct the issuing of a commis sion for obtaining the evidence of the witness, and the commission shall be issued and the evidence taken pursuant to the Alberta Rules of Court. 66(1) The attendance of witnesses before a hearing committee and the production of records may be enforced by a notice issued by the Registrar requiring the witness to attend and stating the date, time and place at which the witness is to attend and the records, if any, that the witness is required to produce.

(2) On the written request of the investigated person or of his coun sel or agent, the Registrar shall, without charge, issue and deliver to that person or his counsel or agent any notices that that person re quires for the attendance of witnesses or the production of any re cord.

(3) A witness, other than the investigated person, who has been served with a notice to attend or a notice for the production of any record under subsection (1) or (2) is entitled to be paid the same fees as are payable to a witness in an action in the Court of Queen's Bench. 67(1) Proceedings for civil contempt of court may be brought against a witness (

a) who fails (

i) to attend before a hearing committee in compliance with a notice to attend, or 24

(ii) to produce records in compliance with a notice to pro duce them. or (

b) who refuses to be sworn or to answer any question that he is directed to answer by a hearing committee.

(2) The chairman of a hearing committee may make a complaint with respect to the failure or refusal of a certified general accountant or student member under subsection (1), and the failure or refusal may be held to be unprofessional conduct. Proceedings 68 A hearing committee, on proof of service in accordance with this invMtfgTtld"^ Act of the notice of hearing on the investigated person, may person (

a) proceed with the hearing in the absence of the investigated person, and (

b) act and decide on the matter being heard in the same way as if the investigated person were in attendance. Finding 69 A hearing committee may find that the conduct of an investi- clmmitt'e^e gated pcrsou constitutes or does not constitute unprofessional con duct. Orders of hearing 70(1) If a hearing committec finds that the conduct of an investi- committee gated pcrsou coustitutcs unprofessional conduct, the hearing com mittee may make 1 or more of the following orders: (

a) reprimand the investigated person; (

b) suspend the registration or permit of the investigated person either generally or from any aspect of the practice of accounting for a stated period or pending compliance with specified condi tions; (

c) suspend the registration or permit of the investigated person either generally or from any aspect of the practice of accounting until (

i) the investigated person has completed a specified course of studies or obtained supervised practical experience, or (ii) the Professional Conduct Committee or any other com mittee established by the Board is satisfied as to the compe tence of the investigated person generally or in a specified field of practice; (

d) accept in place of a suspension the investigated person's un dertaking to limit his practice; (

e) impose conditions on the investigated person's entitlement to engage in the practice of accounting generally or in any field of practice, including the conditions that that person (

i) practise under supervision, (ii) not engage in practice as a sole practitioner, 25

(ill) permit penodic inspections of his practice by a person authonzed by the Professional Conduct Committee or any other committee established under this Act, or (iv) report on specified matters to the Professional Conduct Committee, the Practice Review Committee or any other committee established under this Act, the regulations or the by-laws; (0 direct the investigated person to pass a particular course of studies or satisfy the Professional Conduct Committee or any other committee established under this Act, the regulations or the by-laws as to his professional competence generally or in a specified area of practice; (

g) direct the investigated person to satisfy the Professional Con duct Committee or any other committee established under this Act, the regulations or the by-laws that a disability or addiction can be or has been overcome, and suspend the investigated per son until the Professional Conduct Committee or other commit tee is so satisfied; (

h) require the investigated person to take counselling that is appropriate in the opinion of the Professional Conduct Commit tee or any other committee established under this Act, the regu lations or the by-laws; (

i) prohibit, restrict, limit or place conditions on an investigated person training or supervising the training of student members; (

j) cancel the registration or the permit of the investigated per son; (

k) make any further or other order that it considers appropriate in the circumstances.

(2) If a hearing committee is satisfied that an investigated person has contravened an order under subsection (1) or

section 83 or 88, it may, without the necessity of a further hearing, cancel or suspend, in accordance with the by-laws, his registration or permit, as the case may be, subject to any terms it considers appropriate. Costs and fines 71(1) A hearing committee may, in addition to deahng with the con duct of an investigated person in accordance with

section 70, order that the investigated person pay (

a) all or part of the costs of the investigation, hearing or appeal determined in accordance with the by-laws, (

b) a fine not exceeding $10 000 for each finding of unprofes sional conduct, or (

c) costs under clause (

a) and a fine under clause (b), to the Association within the time and in accordance with the con ditions set by the order.

(2) A hearing committee may, in addition to an order under subsec tion (I), order that the registration or permit of the mvestigated per- 26

son be suspended or cancelled in accordance with the by-laws if payment of the costs or fine, or both, is not made. Conviction of 72 If 3 Certified general accountant, professional corporation or a indictable oflence gt^^jgnt member has been convicted of an indictable offence, the Professional Conduct Committee may, without notice or an investi gation or hearing under this Act, (

a) suspend the registration of the certified general accountant or student member or the permit of the professional corporation pending the determination of an appeal from the conviction or a proceeding to have the conviction quashed, or (

b) on the conclusion of an appeal from the conviction or a pro ceeding to quash the conviction, and whether or not a suspension has been ordered under clause (a), (

i) suspend the registration of the certified general accountant or student member or the permit of the professional corpo ration for a stated period of time, or (ii) order the cancellation of the registration of the certified general accountant or student member or of the permit of the professional corporation.

Publication of decision 73(1) If the registration of a certified general accountant or student member or the permit of a professional corporation has been can celled or suspended, (a) 1 or more notices of the cancellation or suspension shall be published in the form and manner that the by-laws prescribe, and (b) 1 or more notices of the cancellation or suspension may be posted in accordance with the by-laws.

(2) No notice shall be published in accordance with subsection (1) until (

a) an appeal has been heard and a decision made, or (

b) if no appeal is commenced, the time for commencing an ap peal has expired. 74 A fine or costs ordered to be paid by a complainant or investi gated person under this Part are a debt due to the Association and may be recovered by the Association by civil action for debt. Written decision 75 A hearing committee shall, within a reasonable time after the conclusion of a hearing, make a written decision on the matter, in which it shall (

a) describe each finding made by it of unprofessional conduct, (

b) state the reasons for each finding made by it, and (

c) state any order made by it. deasioV*^ 76(1) A hearing committee shall forward to the Registrar (

a) the decision, and Fine and costs are debt 27

in effect (

b) the record of the hearing, consisting of all evidence presented before it, including (

i) all exhibits, (ii) all documents, and (iii) a transcript of all testimony given before it, whether re corded electronically, mechanically or in handwritten form.

(2) The Registrar shall, on receiving the decision of a hearing com mittee and the record of the hearing referred to in subsection (1), (

a) serve a copy of the decision on the investigated person, (

b) forward a notice of the decision to the complainant, if any, and (

c) forward a copy of the decision to the Professional Conduct Chairman.

(3) The investigated person and the Professional Conduct Chairman may examine the record or any part of the record of the proceedings before a hearing committee and hear any recording or examine any mechanical or handwritten record of evidence given before the hear ing committee. Decision remains 77(1) An ordcr of a hearing committee remains in effect until the " ''^"" Appeals Committee or the Board makes a decision on an appeal.

(2) An investigated person may apply to the Board for an order staying the decision of a hearing committee pending the determina tion of the appeal. 78 There is hereby established the Appeals Committee composed of not fewer than 3 members of the Board designated by the Board. 79(1) An investigated person, the Professional Conduct Chairman or, subject to

section 45, the Joint Standards Directorate may by notice in writing to the Registrar appeal (

a) to the Appeals Committee, a finding or order, or both, of a hearing committee, unless the order is a suspension or cancella tion of a registration or of a permit, or (

b) to the Board, an order of suspension or cancellation of a registration or of a permit, or a finding on which the order is based, or both.

(2) A notice of appeal under subsection (1) shall (

a) describe the finding or order or both being appealed, and (

b) state the reasons for the appeal.

(3) A notice of appeal under this

section shall be served on the Reg istrar within 30 days after the date on which the decision of a hearing committee is (

a) served on the investigated person, if he appeals the decision, or Appeals Committee Appeal to Appeals Committee or Board 28

Notice of appeal hearing Representation before appeal hearing Powers of Appeals Committee or Board (

b) forwarded to the Professional Conduct Chairman or the Joint Standards Directorate, if the Professional Conduct Chairman or the Joint Standards Directorate appeals the decision.

(4) On receiving a notice of appeal under this section, the Registrar shall (

a) send a copy of it to the investigated person, if the Professional Conduct Chairman or the Joint Standards Directorate is the ap pellant, (

b) send a copy of it to the Professional Conduct Chairman, if the investigated person or the Joint Standards Directorate is the appellant, and (

c) give to each member of the Board or the Appeals Committee, as the case may be, a copy of the notice of appeal and make the decision of the hearing committee and the record of the hearing available to each member of the Board or the Appeals Commit tee, as the case may be. 80(1) At least 15 days before the date of the hearing, the Registrar shall serve the investigated person, the Professional Conduct Chair man and the Joint Standards Directorate if it appeals under

section 79 with a notice of hearing stating the date, time and place of the appeal.

(2) The Board or the Appeals Committee shall commence hearing an appeal within 90 days after the service of the notice of appeal in accordance with

section 79(3) or within a longer period that is agreed to by the appellant. 81(1) The investigated person, the Association, the Joint Standards Directorate and the Board or the Appeals Committee may each be represented at an appeal before the Board or Appeals Committee.

(2) The Professional Conduct Chairman may, when he is the appel lant, participate in an appeal before the Board or Appeals Committee but may not vote on a decision of the Board or Appeals Committee. 82(1) The appeal to the Board or Appeals Committee shall be founded on the decision of the hearing committee and the record of the pro ceedings before the hearing committee.

(2) The Board or Appeals Committee on an appeal may (

a) grant adjournments of the proceedings or reserve the deter mination of the matters before it for a future meeting of the Board or Appeals Committee, (

b) on granting special leave for the purpose, receive further evi dence, and (

c) draw inferences of fact and make a decision or finding that, in Its opinion, ought to have been made by the hearing commit tee.

(3) Sections 63 to 71 apply to proceedings before the Board and the Appeals Committee. 29

o^'nlooeai ^^^^^ J^f Board or the Appeals Committee shall after the conclu- on appeal ^^^^ ^f ^|j proceedings before it, (

a) make any finding or order that in its opinion ought to have been made by the hearing committee, (

b) quash, vary or confirm the finding or order of the hearing committee or substitute or make a finding or order of its own, or (

c) refer the matter back to the hearing committee for further consideration in accordance with any direction that the Board or Appeals Committee may make.

(2) The Board or the Appeals Committee may make an award as to the costs of an appeal determined in accordance with the by-laws. Written decision 84(1) The Board or the Appeals Committee shall, within 60 days after the conclusion of the proceedings before it, make a written decision on the matter and shall forward the decision to the Regis trar.

(2) The Registrar shall, forthwith after the decision is received, (

a) serve a copy of the decision on the investigated person, and (

b) forward a copy of the decision to the Professional Conduct Chairman and, if applicable, to the Joint Standards Directorate.

(3) The decision of the Board or the Appeals Committee remains in effect until the Court of Appeal makes a decision on an appeal.

(4) An investigated person may, by filing an originating notice with the Court of Queen's Bench and serving a copy on the Registrar, apply for an order staying the decision of the Board or the Appeals Committee pending the determination of his appeal to the Court of Appeal. Appeal to Court of Appeal Parties to appeal Appeal on the record 85(1) An investigated person or, subject to

section 45, the Joint Standards Directorate may appeal to the Court of Appeal any deci sion made by the Board or the Appeals Committee.

(2) An appeal under this

section shall be commenced (

a) by filing a notice of appeal with the Registrar of the Court at Edmonton or Calgary, and (

b) by serving a copy of the notice of appeal on the Registrar, within 30 days from the date on which the decision of the Board or Appeals Committee is served on the investigated person. 86 The Association, the investigated person and, if applicable, the Joint Standards Directorate are the parties to an appeal under

section 85. 87 The appeal to the Court of Appeal shall be founded on (

a) the record of the proceedings before the Board or the Appeals Committee, and (

b) the decision of the Board or the Appeals Committee. 30

Power of Court on appeal Reinstatement Employer to recognize sanctions Notice to employer Proceedings in private Falsely obtained registration Penalties 88(1) The Court of Appeal on hearing the appeal may (

a) make any finding or order that in its opinion ought to have been made, (

b) quash, vary or confirm the decision of the Board or the Ap peals Committee or any part of it, (

c) refer the matter back to the Board or the Appeals Committee, as the case may be, for further consideration in accordance with any direction of the Court, or (

d) direct that a new trial of any mixed questions of law and fact relating to a finding or order, or both, of the Board or the Appeals Committee under

section 83 be held before the Court of Queen's Bench.

(2) The Court of Appeal may make any award as to the costs of an appeal to it that the Court considers appropriate. 89 If the registration of a certified general accountant or student member or the permit of a professional corporation has been can celled, the registration or permit shall not be reinstated except by order of the Board or by a court of competent jurisdiction. 90 No employer or other person shall knowingly require a certified general accountant, professional corporation or student member to perform a service or undertake any work that would result in the certified general accountant, professional corporation or student member contravening an order or direction of the Professional Con duct Committee, a hearing committee, the Appeals Committee, the Board or a court of competent jurisdiction. 91 If the registration of a certified general accountant, professional corporation or student member is suspended or cancelled or the prac tice of a certified general accountant, professional corporation or stu dent member is ordered to be limited, the person who is the subject of the cancellation, suspension or limitation shall forthwith notify his employer of the cancellation, suspension or limitation. 92 Except when otherwise provided, all proceedings before a com mittee, board or other body established under this Act, the regula tions or the by-laws shall be held in private. 93(1) If the Board is satisfied, after a hearing on the matter, that a person whose registration is entered in a register obtained registration by means of a fraudulent representation or declaration, either oral or written, the Board shall order that the registration be cancelled.

(2) The procedures at a hearing before a hearing committee in this Part apply to a hearing held by the Board under subsection (1).

PART 8 OFFENCES AND PENALTIES 94(1) Every person and every officer, employee or agent of a corpo ration or firm who contravenes this Act is guilty of an offence and liable (

a) for a first oflfence, to a fine of not more than $2000, (

b) for a 2nd oflfence, to a fine of not more than $4000, and 31

Certificate of Registrar Protection from liability Service of documents (

c) for a 3rd and every subsequent oflfence, to a fine of not more than $6000 or to imprisonment for a term of not more than 6 months, or to both fine and imprisonment.

(2) A prosecution under this

section may be commenced within 2 years after the commission of the alleged oflfence, but not afterwards. GENERAL 95 A certificate purporting to be signed by the Registrar and stating that a named person was or was not, on a specified day or during a specified period, (

a) a certified general accountant, student member or profes sional corporation, or (

b) an officer of the Association or a member of the Board, the Joint Standards Directorate or of a committee or board estab lished by or under this Act, the regulations or the by-laws, shall be admitted as prima facie proof of the facts stated in it without proof of the Registrar's appointment or signature. 96(1) No action lies against (

a) a Registrar, an investigator or a member of a committee or board established under this Act, the regulations or the by-laws, the Board, the Association, the Joint Standards Directorate or any person acting on the instructions of any of them, or (

b) any member, officer or employee of the Association for anything done by him in good faith and in purporting to act under this Act, the regulations or the by-laws.

(2) No action for defamation may be founded on a communication that consists of or pertains to

an act or omission of a certified general accountant, professional corporation or student member if the com munication is published to or by (

a) the Association or the Joint Standards Directorate or an of ficer or employee of either, (

b) a member of the Board or of a committee established under this Act, the regulations or the by-laws, (

c) an investigator, or (

d) a person acting on the instructions of any person or entity referred to in clauses (

a) to (c), in good faith in the course of investigating the conduct or in the course of any proceeding under this Act or the regulations relating to conduct. 97 When this Act, the regulations or the by-laws require that a document or notice be served on any person, the document or notice is sufficiently given or served (

a) if it is served personally on that person or sent to him by registered mail or courier at the address last shown for that per son on the appropriate register, or 32

Commissioner for oaths Action for fees Custodian (

b) if personal service or service by mail is not reasonably pos sible, by publishing the document at least twice, and not more than a week apart, in a local newspaper circulating at or near the address last shown for that person on the appropriate register. 98 For the purpose of an investigation, hearing or review under this Act, an investigator and a member of the Professional Conduct Com mittee, a hearing committee, the Practice Review Committee, the Joint Standards Directorate, the Appeals Committee and the Board are conferred with the power of a commissioner for oaths under the Commissioners for Oaths Act. 99 A professional corporation may sue for fees for services per formed on its behalf and in its name by a person in his capacity as a member at any time after the services are performed, if the services were performed during the time that the corporation was the holder of a subsisting permit. 100(1) If (

a) the registration of a certified general accountant or the permit of a professional corporation is suspended or cancelled, (

b) a certified general accountant dies, (

c) a certified general accountant becomes mentally incapaci tated, (

d) a certified general accountant becomes ill or for some other reason is unable to engage in practice as a certified general ac countant, (

e) a certified general accountant absconds or is otherwise im properiy absent from his practice, or has neglected his practice for an extended period of time, or (

f) sufficient other grounds exist, a judge of the Court of Queen's Bench may, on application by the Association, either ex parte or on such notice as the judge may re quire, by order appoint the Association or a person nominated by it as custodian to have custody of the property of the certified general accountant or professional corporation for the purpose of managing, winding up or selling the practice of the certified general accountant or professional corporation.

(2) An order under subsection (

I) may direct the sheriflf of any judi cial distnct in Alberta to seize and remove and place in the custody of the custodian all property of the person who is the subject of the order, and the order may authorize the sheriflf to enter on any prem ises or open any safety deposit box or other receptacle if there are grounds for believing that property of the person who is the subject of the order may be found on it or in it.

(3) Unless otherwise directed, the order shall be promptly served on the person in respect of whom it is made.

(4) On the receipt by a person of notice that an order has been made pursuant to this section, he shall not dispose of any property of a 33

Examination and disposal of property certified general accountant or professional corporation until directed by the custodian or by order of the Court as to the disposition of it.

(5) A judge of the Court of Queen's Bench may, in an order under subsection (

I) or at any time and from time to time by a subsequent order made ex parte or on notice required by the judge, (

a) direct a bank or other depository of property of the person in respect of whom the order is made to deal with, hold, pay over or dispose of that property to the custodian or to some other person the judge considers proper, (

b) remove any custodian appointed by the order and appoint another custodian, (

c) give directions and advice to the custodian as to the disposi tion of the property in his hands or any part or parts of it, or (

d) give any directions or make any further orders that the situ ation requires.

(6) The person in respect of whom an order under subsection (1) is made may apply to have the order modified or terminated at any time.

(7) The fees, costs and expenses of the custodian shall be paid out of the property of the certified general accountant or professional cor poration in respect of whose practice the custodian is appointed and over which the custodian has authority subject to any order or direc tion that the Court may impose. 101(1) If property has been placed in the custody of a custodian under

section 100, the persons designated by the Professional Con duct Chairman shall examine the property and the custodian shall, by notice as he thinks proper, including publication in a newspaper if he thinks fit, inform clients of the person whose property has been placed in custody (

a) that the property is in the custody of the custodian and that an examination of it indicates that the client or other person appears to have an interest in it, and (

b) that the client or other person may apply to the custodian in person or by solicitor or agent for the delivery to him of the property in which he appears to have an interest or for leave to make copies of any documents and papers among the property that he thinks necessary to copy, in respect of any transactions or dealings he had with the certified general accountant or profes sional corporation.

(2) If the custodian is satisfied that a person is entitled to any prop erty in his custody, he may deliver the property to the person claim ing it. Exemption from 102 municipal licence No municipality has the power to require (

a) a certified general accountant or professional corporation to obtain a licence from the municipality to carry on practice as a certified general accountant, or 34

(

b) a student member to obtain a licence from the municipality to perform any act or service authorized by this Act, the regula tions or the by-laws to be performed by a student member.

PART 10 REGULATIONS AND BY-LAWS Regulations 103(1) The Board may make regulations of Board (

a) providing for the publishing of a code of ethics respecting practice as a certified general accountant, the maintenance of the dignity and honour of the profession of accounting and the pro tection of the public interest; (

b) providing for academic requirements or courses of instruc tion to be satisfactorily completed by applicants for registration; (

c) respecting any arrangements with the Universities Co-ordi nating Council that are considered necessary or desirable; (

d) respecting the evaluation of the academic qualifications of an applicant for registration; (

e) providing for the determination as to whether an applicant for registration is academically eligible for registration; (

f) requiring a person to pass examinations or take 1 or more courses of study in order to establish academic qualifications for registration; (

g) respecting the administration, development, setting and marking of examinations or any other matter respecting exami nations and appeals from decisions on examinations; (

h) governing the eligibility of individuals who wish to become student members, by whom they are to be trained, the nature and period of the training and the conduct expected of them; (

i) respecting or adopting standards for practice as a certified general accountant;

G) prescribing an amount for the purposes of

section 18(3)(a)(i); (

k) prescribing restrictions, conditions or limitations on the prac tice of certified general accountants, professional corporations or student members; (1) respecting the manner of determining the amount of costs payable by a person referred to in

section 58(4)(b); (

m) respecting the establishment and operation by the Board or a committee or board established or designated by the Board of a professional development program for certified general ac countants including the times at which or within which the pro gram must be completed and the nature and contents of it. 35

(2) A regulation under subsection (1) does not come into force unless (

a) it is approved by a majority of certified general accountants who vote at a general meeting or in a mail vote conducted in accordance with the by-laws, and (

b) it is approved by the Lieutenant Governor in Council. By-laws of Board 104(1) The Board may make by-laws (

a) for the government of the Association and the management and conduct of its aflfairs; (

b) determining the location of the head office of the Association; (

c) respecting the calling of and conduct of meetings of the As sociation and the Board; (

d) defining what constitutes a meeting of the Board for purposes of this Act, the regulations and the by-laws; (

e) respecting the nomination, election, number and term of of fice of Board members and officers of the Association, the filling of vacancies on the Board and any committee or board estab lished by the Board, the appointment of individuals as ex officio members of the Board and of any committee or board established by the Board and prescribing the powers, duties and functions of those members, officers and ex officio members; (

f) providing for the appointment of acting members of the Board and procedures for the election of certified general accountants and the nomination of members of the public for appointment by the Minister; (

g) governing, subject to this Act, the appointment and procedure of a committee or board established under this Act, the nomi nation of members of the public for appointment by the Minister to a committee or board, the designation of chairmen and vice- chairmen, the appointment of acting members and the procedure for filling vacancies on a committee or board and the appoint ment of ex officio members of a committee or board, and pre scribing the powers, duties and functions of persons so designated or appointed; (

h) establishing a code of ethics respecting (

i) practice as a certified general accountant, (ii) the maintenance of the dignity and honour of the profes sion of accounting, and (iii) the protection of the public interest; (

i) authorizing the making of rules and guidelines to explain and illustrate the code of ethics and professional conduct;

G) respecting the manner of determining the amount and pay ment of costs respecting proceedings associated with professional conduct or practice reviews; (

k) respecting a practice review; 36

(1) establishing specialties of accounting practice and prohibiting a certified general accountant or professional corporation from holding out that he or it is entitled to engage in a specialty of accounting practice unless the certified general accountant or professional corporation is registered in a specialty register; (

m) prescribing terms and conditions of registration and main taining registration in a specialty register; (

n) designating specialty names, initials or abbreviations that may be used by a certified general accountant or professional corpo ration registered in a specialty register; (

o) providing for the division of Alberta into electoral districts and prescribing the number of Board members to be elected from each district; (

p) establishing classes or categories of members of the Associa tion including honorary members and life members, and pre scribing the privileges and obligations of the classes or categories established; (

q) requiring certified general accountants and professional cor porations to carry professional liability insurance and governing the minimum coverage required to be carried by all certified general accountants and professional corporations or any cate gory of them; (

r) providing for the appointment and tenure of the Registrar and his additional duties, powers and functions, and the appointment of an individual as an acting Registrar who has all of the powers and performs all of the duties of the Registrar under this Act, the regulations and the by-laws when the Registrar is absent or una ble to act or when there is a vacancy in the office; (

s) establishing the number of members that constitutes a quo rum at meetings of the Association, the Board or any committee established under this Act; (

t) providing for the delegation of any powers or duties of the Board under this Act, the regulations or the by-laws except the power to make regulations and by-laws, with or without condi tions, to a committee established or appointed by the Board or an individual; (

u) prescribing fees and expenses payable to members of the Board and of committees and boards established under this Act, the regulations or the by-laws for attending to the business of the Association; (

v) respecting the establishment of and payment of sums of money for scholarships, fellowships and any other educational incentive or benefit program that the Board considers appropriate; (

w) respecting fees, dues and levies payable to the Association by certified general accountants, professional corporations, student members and applicants for registration and providing for the suspension or cancellation of a registration or permit for non payment of the fees, dues or levies; 37

(

x) respecting the establishment, contents and maintenance of registers and records to be kept by the Registrar; (

y) respecting the removal from the registers and records of any memorandum or entry made in them under this Act, the regula tions or the by-laws; (

z) requiring certified general accountants and professional cor porations to maintain a business address and to inform the Reg istrar in writing of that address and of any change in that address forthwith after the change occurs; (aa) authorizing the Board to prescribe the form of a certificate of registration, a permit and any other form or document that may be required for the purposes of this Act, the regulations or the by-laws; (bb) prescribing the manner of proof as to matters required by this Act to be proven by applicants and any conditions to be met by applicants for registration; (cc) providing that the permit of a professional corporation is suspended without notice or investigation on contravention of any by-law that requires the corporation to pay a fee or assess ment, file a document or do any other act by a specified or ascer tainable date, and providing for the reinstatement of a permit so suspended; (dd) respecting reinstatement of a person as a certified general accountant, professional corporation or student member and pro viding for the reissuance of a certificate or permit suspended or cancelled under this Act or the by-laws and prescribing the terms and conditions on which reinstatement or reissuance of a certifi cate or permit may be granted; (ee) providing for the creation and maintenance of a record of professional corporations, the recording of current professional corporations and requiring the filing of periodic returns by professional corporations and prescribing the contents of those returns; (flf) providing for the annual renewal of permits and prescribing the terms and conditions on which renewal may be granted; (gg) setting out the business that may be carried on and the pow ers that may be exercised by a professional corporation under this Act; (hh) respecting the holding of votes by mail in respect of any matter relating to the Association; (ii) respecting any matters ancillary to registration, permits, cer tificates and the practice of a certified general accountant gener ally; Gj) prescribing the manner of proof as to matters required to be proven by applicants for permits; (kk) governing the names under which certified general account ants and professional corporations may engage in practice; 38

(11) prescribing the types of names by which (

i) a professional corporation, (ii) a partnership of 2 or more professional corporations, or (iii) a partnership of 1 or more professional corporations and 1 or more individual certified general accountants, may be known; (mm) prescribing conditions or rules with respect to the media tion of complaints; (nn) respecting fees or charges for any service or thing provided or performed by or on behalf of the Association; (oo) respecting publication of orders made by a hearing commit tee or the Board; (pp) respecting delegation by the Registrar of his authority under this Act, the regulations and the by-laws; (qq) requiring members of the Association to keep books of ac count and records containing particulars and information as to money received, held or paid for or on account of cUents, requir ing the furnishing of evidence that those accounts and records are being kept and maintained and providing for the inspection of those books and records from time to time by the officers, auditors or agents of the Association; (rr) respecting the establishment by the Board of a compulsory continuing education program for certified general accountants; (ss) respecting compulsory errors and omissions insurance.

(2) A by-law made by the Board is eflfective from the date it is en acted or any later date specified in the by-law but remains in effect only until the next annual meeting of the Association and, in default of confirmation by certified general accountants at that meeting, it ceases to be in force.

(3) The Regulations Act does not apply to the by-laws of the Asso ciation. Regulations 105 The Licutcnant Governor in Council may make regulations of Lieutenant •' ^ Governor in / \ -i • i , . ^ Council (

a) prescribing how the costs of the Joint Standards Directorate may be assessed and levied; (

b) respecting the procedures of the Joint Standards Directorate that ensure that anonymity of a person whose practice is re viewed by the Joint Standards Directorate is maintained; (

c) requiring the final step of a review by the Joint Standards Directorate, before a referral of a complaint, to be carried out by a member of the accounting organization of which the person being reviewed is a member; (

d) respecting any other matter considered necessary to carry out the objects of

Part 6. 39

Registration continued

PART 11 TRANSITIONAL AND REPEAL 106^7^ In this

section and in sections 107, 108 and 109, 'former Association" means the Certified General Accountants' Association of Alberta as incorporated under the Societies Act.

(2) An individual who is a member in accordance with the by-laws of the former Association is deemed to be registered as a certified general accountant under this Act.

Board continued 107 The members of the Board of Governors elected under the by laws of the former Association are deemed to be members of the Board under this Act, elected for the same period and holding the same offices. 108 An application for membership made under the by-laws of the former Association but not concluded before the coming into force of this Act shall be dealt with as an application for registration under this Act. 109(1) Any complaint made or discipline proceedings commenced but not concluded before the coming into force of this Act shall be con cluded under the by-laws of the former Association as though this Act had not come into force.

(2) A complaint made or discipline proceedings commenced after the coming into force of this Act when the complaint or proceedings relate to conduct occurring all or partly before the coming into force of this Act shall be dealt with under this Act. 110 The Certified General Accountants Act,

chapter C-3.5 of the Statutes of Alberta, 1984, is repealed. Coming 111 This Act comes into force on Proclamation. into force Application continued Discipline proceedings continued Repeal 40 Title: 1987 (21st, 2nd) Bill 52, Certified General Accountants Act

Document details

Collection	Alberta — Bills
Citation	L21 S2 3099
Type	bill
Volume / chapter	L21 S2 3099
Language	en
Format	json
Source	PROVINCIAL
Identifier	7a8bb013456117d3c92f38471d5224a00592f365

Source file is stored in the law ingest library (json).