Lebanese Association of Certified Public Accountants (LACPA)
Title One: General Provisions - Definitions
Article One: The Lebanese Association of Certified Public Accountants (LACPA) shall have full independence in the framework of the law, especially in the internal, financial and administrative affairs, and shall have the moral personality, and exercise its powers through its miscellaneous bodies while observing provisions of the law organizing the profession no. 364/1994 on the date of 01/08/1994 and the Lebanese laws in general and the present bylaws.
Article 2: Certified accountants, professional civil companies and trainees registered at LACPA must abide by the present bylaws and any violation of its provisions or the provisions of the law no. 364/1994, or the usages and ethics of the profession and any act impairing its dignity, whether while practicing it or not, shall expose the violator to the penalties provided for in article 43 of the abovementioned law organizing the profession.
Article 3: LACPA’s scope of work of shall include all Lebanese Territories, and the association shall be composed of a general assembly including all certified accountants registered in the general list established by LACPA according to articles 7, 18, 20 and 61 of the law no. 364/1994, and a LACPA council and a disciplinary council, and shall have a retirement fund and a mutual fund which shall be administrated according to the bylaws of each of them, as well as specialized committees working by virtue of the bylaws.
The certified accountants which are members of LACPA shall be divided into two categories: Practicing Certified Accountants and non-practicing Certified Accountants.
Practicing Certified Accountants (CPAs)
Article 4: Definition of the practicing CPA’s
Such term shall include every natural person registered on the general list of LACPA, practicing the profession of auditing and assessing all types of accounts, and entitled to state opinions on the financial statements, on his/her behalf or for the account and responsibility of another person, whether natural or legal, who has a duly registered office for auditing accounts.
The term “Auditing office”, wherever featuring in the present bylaws, shall refer to a CPA or a civil professional company.
Article 5: Right of the CPA
The CPA shall have the following rights:
- Use the title of Certified Public Accountant
- Be registered in the general LACPA list
- Be registered in the list of CPA’s
- Vote in the general elections of LACPA to select all members of the Council and be nominated to the presidency or membership of the LACPA Council, and to the positions stipulated by the article 40 of the law organizing the profession.
- Take part to the general assemblies and vote on all its resolutions.
- Solicit the Quality Control Supervisory Commission – QCSC to review the working files and internal organization relevant to his/her office.
- Conclude consultation and arbitration contracts and perform academic, administrative and financial studies in the professional field before any public or private body.
- Benefit from any social services provided by LACPA to its members.
Article 6: Obligations of the CPA
The CPA must:
- Elect a permanent residence in his/her own office, or at the office of another CPA, working for his/her account, and shall be entitled to have more than one office, provided that he/she would inform LACPA of such, according to article 12 of the law 364/94.
- Work as a full timer in the profession solely, and practice such in office(s) allocated for such purpose and with full independence.
- Abide by professional secrecy.
- Practice the profession personally without the right to mandate, yet he/she shall be entitled to engage assistants on his/her responsibility.
- Sign, on his/her responsibility, the works prepared by the individuals and trainees relevant to his/her office.
- Abide by the enforced bylaws and regulations of LACPA, and all decisions of LACPA council and the general assembly.
- Pay fees and subscriptions to the LACPA fund and other relevant funds.
- Be member of the retirement fund.
- Inform LACPA Council of any change or modification on his/her situation as a practicing CPA within two months of such.
- Abide by the professional ethics when succeeding to another CPA whose task has ended, especially as per obtaining explanations concerning the reasons for such end.
- Refrain from any media appearance which is susceptible of defaming LACPA and its council and members, under penalty of disciplinary pursuit.
- Refrain from providing any direct or indirect professional services to the clients of the auditing office for which he/she worked, for a three-year period following his departure from such office.
Article 7: Warning of payment
In the event the practicing CPA failed to pay the due subscriptions for two consecutive years, the president of LACPA shall address a warning letter to him/her for settlement within fifteen days from the date of the notification letter. In the event the amount is still not paid, within the said deadline, the president shall address a final personal warning calling for paying the due amounts within fifteen days from the date of the last notification. In the event the CPA does not pay the due amounts after the expiry of the last deadline, the president shall submit the issue to the LACPA council in order to take the decision to write off the CPA from the general list, and the name of the latter shall be registered in a special register.
The CPA who lost his/her right to practice for the abovementioned right may solicit to recover his/her right under the condition of payment of the due amounts with the legal interest charges, upon a decision from the council as well.
Article 8: Forfeiture of the right to practice the profession
The right of the practicing CPA shall be forfeited in the event he/she lost one the memberships conditions provided for in the article 8 or in the event he/she holds prejudice to the provisions of article 15 of the law no. 364/94, provided that the LACPA council would take the appropriate decision in his/her regard in the light of the alleged prejudice and shall not be considered as violating the above mentioned article 15, any practicing CPA working for the office of a CPA or for a auditing and accounting civil company, in the event he/she was registered at the National Fund for Social Security (NSSF), and is entitled to state an opinion on financial statements in the event of approval of the CPA or the auditing and accounting civil company for which he/she works.
Non practicing CPA
Article 9: Definition of the non-practicing CPA
The non-practicing CPA is any natural person registered on the general list of LACPA, not practicing the profession according to the present bylaws, and not entitled to state opinions on financial statements as an auditor engaged by company’s shareholders/partners or by court.
Article 10: Rights of the non-practicing CPA
The non-practicing CPA shall have the following rights:
- Be registered in the general list
- Be registered in the list of non-practicing CPA’s
- Vote in the general assemblies of LACPA, including the right to take part in the elections, without the right to run election to any position in the LACPA Council or disciplinary council or any of the positions stipulated by the article 40 of the law organizing the profession.
- Solicit to be registered on the list of practicing CPA’s upon fulfilment of the required conditions, provided that he/she shall not proceed with practicing the profession until after a resolution is issued by the LACPA council approving such request within two months from the date of application, otherwise the request shall be considered accepted as a matter of right, provided that he/she would accomplish a training session at the institution of training according to article 123 of the present bylaws.
Article 11: Obligations of the non-practicing CPA
- Inform LACPA Council of any change or modification on his/her situation as a non-practicing CPA within two months of such.
- Abide by the enforced bylaws and regulations of LACPA, and all decisions of the LACPA council and the general assembly, especially those relevant to the non-practicing CPAs.
- Refrain from declaring or leading to believe that he/she is a practicing CPA, provided that his/her statement of his statute as a CPA would include the term “non-practicing”. In all events, he she shall refrain from any public appearance relevant to the LACPA affairs without a prior written approval from the LACPA council under penalty of disciplinary pursuit.
- Pay the full subscription fee and other determined fees as provided for in article 46 of the present bylaws, under the penalty of writing off his/her name from the general list of LACPA in the event he/she failed to pay such subscriptions for two consecutive years according to the procedures stated in article 7 of the present bylaws.
Article 12: The duly registered CPA’s, whether practicing or non-practicing, except for those who attained the age of sixty, shall pursue their education and follow the technical development in the professional field, by attending the training sessions, seminars, conferences, and lectures organized by LACPA through its administrative and technical bodies, or in participation with international or local, private or public academic, financial or economic bodies or institutes, or those organized by competent academic institutions, upon the approval of the LACPA council, provided that his/her participation would not be less than forty hours per year according to the registers of LACPA.
The teaching or training hours undertaken by the CPA in universities or at the LACPA’s Institute of Educational and Academic Training shall be considered as participation hours, according to the concept of the present article.
In the event the CPA failed to pursue his/her education, according to the present article for two consecutive years, a warning letter shall be addressed stating the necessity of compensating any lack within the following year, under the penalty of referring him/her to the article 43 of the law organizing the profession.
Provisions of the present article shall be enforced starting the date of approving the present bylaws and shall not include the precedent period.
Article 13: Membership application
Applicants to LACPA shall submit their Traineeship application, with the relevant documents fulfilling the conditions provided for in the articles 8 and 9 of the law organizing the profession as per Lebanese nationals, and in articles 18 and 19 of the same law as per non Lebanese.
The Traineeship period shall start from the date of accepting the application according to article 9 of the law organizing the profession.
Article 14: Submitting the exam
The trainee members who ended the first year of traineeship shall submit an exam decided by the LACPA Council and adopted by the Exams Committee as stipulated in article 8 of the law organizing the profession. As for holders of CPA certificates issued by international associations or institutes stated in the above article 8, they shall only be subject to relevant Lebanese laws exam according to the determined curriculum.
Article 15: Conditions of Traineeship
While observing the above articles, the trainee shall abide by the special provisions stipulated in the law organizing the profession, especially articles 9, 10, 12, 13, and the Traineeship shall be regulated according to the following bases:
- Trainees shall not be entitled to introduce themselves as CPAs, and may not establish an office in their name before accomplishing their traineeship and registering themselves in the general list.
- The traineeship period shall be determined of three full years. Such period shall be decreased to one year for holders of CPA certificates as stated in article 8 of the law 364/94 provided they obtain a practicing license in such countries.
- Trainees must abide by attending the training and teaching curriculum adopted by LACPA’s Institute of Educational and Academic Training during the years of traineeship, under penalty of prohibiting them from submitting the exam, or delaying the latter, provided that the training hours are considered as actual work for the traineeship office.
- Trainees who move during their traineeship from one practicing CPA office to another, must inform the LACPA council of such, by virtue of a letter including the approval of the former and the latter, and in the event the approval may not be obtained from the latter for any reason whatsoever, the LACPA council shall be competent to peruse and adjudicate the issue within one month from the date of notification, otherwise their silence shall be considered as implicit approval.
- Trainees must work as a full timer in the field, with a minimum of seven daily working hours, and in the event they discontinue such work without an acceptable justification, the practicing CPA at the premises of which the traineeship is performed must inform the LACPA council of such within fifteen days from the discontinuity, under the penalty of disciplinary liability. Pursuant to such notification, the LACPA president shall address to the trainee a letter soliciting an explanation for such discontinuity, provided that the answer would be addressed within one week from the date of receiving the said letter by the intern, under penalty of submitting the matter to the LACPA council to take the appropriate decision.
- Trainees shall be entitled to submit the exam within a maximum period of five years from the first year of their Traineeship.
- Statuses of the trainees registered before LACPA, which have not successfully passed the Traineeship exam until the date of enforcement of the present bylaws, whereas they shall be allowed to submit the exams for four additional sessions within two years, starting the year 2014. The procedures for implementing the present paragraph shall be determined by a decision from the LACPA council.
- Trainees must submit to the LACPA council every six months, via the office of traineeship, a traineeship report, including the professional activities they performed during the said period, whether as per accounting, auditing, or expertise, according to the form established by the LACPA council in this regard.
- A file shall be established for each trainee, whether in soft or printed copy, bearing a serial number, and including the traineeship documents and the periodical reports stated in the above paragraph 8.
Civil Professional Companies
Article 16: Practicing CPAs may establish between them Civil Professional Companies.
- The partnership contracted must be written, and registered at the register of civil companies before the clerk office of the relevant first instance court, and in the special register for professional companies as stated in article 20 of the law organizing the profession, and the partnership contract shall include the following information:
- Corporate objective
- Names of the associates
- Rights of the associates
- Corporate duration and headquarters
- Corporate signatory(ies) by virtue of a commercial circular.
- Associates must register the company at the special register of companies in LACPA within two months of the incorporation, and must also inform LACPA of any amendment to the corporate contract within two months from the date of modification.
- Associates shall be prohibited from using the name of the company before the due registration under penalty of applying the disciplinary penalties stated in article 43 of the law organizing the profession.
- The auditing financial statements reports issued by the Professional Civil Companies shall be signed according to the International Auditing Standards.
Organization and Administration of LACPA
Bodies of LACPA
Article 18: The bodies of LACPA shall comprise of the general assembly and the LACPA council as well as additional bodies, namely the Disciplinary Council, ad hoc committees, and the retirement fund established by decree number 15222 on the date of 27/09/2005 and the Mutual Fund registered before the General Directorate of Cooperatives (GCD) under number 1/58 on the date of 12/05/1999, and each of the said bodies shall be administrated according to their relevant regulations and the bylaws of LACPA, and the law organizing the profession no. 364/1994.
Article 19: Meetings of the General Assembly
The meetings of the General assembly shall be subject the special stipulations provided for in the law organizing the profession while observing the following:
- The CPA wishing to take part and vote in such meetings must have paid his/her subscriptions within the deadline stated in article 46 of the present bylaws.
- The secretary of the LACPA council shall draft minutes of the General Assembly meeting including a summary of the deliberations and decisions taken by the General Assembly, and shall sign it with the president.
- The minutes and resolutions of LACPA shall be classified by serial numbers according to their dates and shall be kept at the secretariat.
- Each CPA having paid his/her subscription fees shall be entitled to have access to such minutes and resolutions, and obtain a true copy thereof in consideration of a fee to be determined by the LACPA council upon an application presented by the requesting CPA to the LACPA council.
Article 20: Competence of the General Assembly
- The General Assembly allocated to elect the president shall be considered an electorate and may not discuss any other issue.
- The General Assembly shall hold its ordinary session within the second half of November to discuss and approve the accounts of the former year, and a special session shall be held in the second half of November to discuss and approve the LACPA budget for the following year.
The LACPA Council
Article 21: the LACPA Council shall be composed of the LACPA president and nine members to be elected by the general assembly.
Article 22: Elections shall be supervised by a committee composed of a president and two members, to be chosen by the General Assembly, from amongst the non-candidate members.
Article 23: Elections of the LACPA Council
The elections shall take place according to the following basis:
- The LACPA Council shall determine the number of ballot boxes, and designate the chief clerks, and deposit the lists of accepted candidates to the committee supervising the elections before the beginning of the election procedure, as well as the lists of the representatives of the candidates who are entitled to attend the election and scrutiny.
- Voting papers which bear a color or titles otherwise than stated in the general list shall be cancelled.
- The winner must obtain the majority of votes, and in the event of equal votes the elder candidate shall win, and in the event of equal age, the candidate with seniority of membership shall be considered winner.
- Results of the election shall be registered in special minutes signed by the head of the supervising committee and both members, and shall be attached to the relevant minutes of the General Assembly session.
The voting papers of each ballot box shall be attached to the elections minutes, provided that they are destroyed upon the expiry of the objection deadline and the adjudication of objections. Minutes and the attachments thereto shall be kept before the secretariat and a copy thereof shall be kept before the president of LACPA.
- The committee shall count the votes and draft a statement featuring the names of the candidates, and the number of votes obtained by each of them, and the committee chairman shall declare the names of the winners for the position of president and members of the Council.
- As for the voting papers which contain a number of candidates exceeding the required number, the names of the candidates whose names feature first shall be accounted for according to their ranking position in the voting paper, until the required number is reached.
- In a subsequent period, upon the availability of the conditions and capacities, an electronic procedure may be established for voting, according to a mechanism established by the LACPA council according to the criteria set above.
- Each candidate shall be entitled to obtain minutes of the results of elections within three working days from the end of the electoral process, and the LACPA council must fulfill such request within two days from the request date.
- The electoral process may be objected within one month of its accomplishment according to article 28 of the law organizing the profession.
Meetings of the Council
While observing the chapter two of the law organizing the profession, the following procedures shall be followed in the meetings and voting of the Council:
- The LACPA council shall gather according to article 32 of the laws organizing the profession, in order to elect the deputy, secretary, treasurer, and two alternate members for them, and such shall occur by consent, and if such is not possible, by secret ballot, and the winner must obtain the majority of votes, and in the event of equal votes the elder candidate shall win, and in the event of equal age, the candidate with the seniority of membership shall be considered winner.
- The LACPA council shall gather once at least every month, upon a written convening from the president, including the meeting agenda, and the meeting shall only be legal with the presence of six members at least, including the president, or his/her deputy in the event of absence, and in the event they are both absent, the session shall be chaired by the eldest member.
In the event the president fails to convene the council within the abovementioned one-month deadline, a minimum of three members shall be entitled to convene the council.
- The president shall establish the agenda of the Council meetings and shall notify such to the members within three days at least from the date of the session. In the event the convening was addressed by three members at least if the president failed to do such, the said members shall establish the agenda and notify it to the president and the remaining members within the said deadline.
The president may submit this issue to the LACPA Council within a maximum deadline of two weeks, otherwise it shall be considered listed in the agenda as a matter of right.
The president shall be entitled to propose urgent or summary items from outside the agenda.
- The president of LACPA and members of the Council shall abide by the secrecy of deliberation and each of them shall take oath to maintain such secrecy in the session following their election.
- The LACPA council shall peruse the items listed on the agenda according to the order stated therein, and in the event the perusal of all items is not accomplished, the clauses which have not been perused shall be listed as a matter of right by priority on the agenda of the following session.
The LACPA council shall take resolutions by consensus, or by majority of votes, and in the event of equal votes, the president shall have a casting vote, and the voting shall be in public, unless the Council decides otherwise.
- The minutes of the Council shall be drafted then read at the end of the session, or in the session for approval and shall be signed by the president, secretary and the present members.
- Minutes and resolutions of the LACPA Council shall be drafted in a special register by date, and shall obtain serial numbers for each year, and shall be kept under the supervision of the secretary, and the decisions shall also be published on the LACPA websites and billboards, and each CPA may obtain a true copy of any resolution in consideration of a fee to be determined by the LACPA Council.
- In the event the position of one of the LACPA council is vacant, such position shall be occupied by the candidate who obtained the highest number of votes, after the winners in the last elections, until the end of term of the member whose position was vacant. In the event the member whose position is vacant was elected for one of the tasks stipulated in the article 32 of the law, the LACPA Council shall elect a replacing member from amongst its members for such task within one week from filling the vacant position.
Competences of the LACPA Council
Article 25: In addition to what was stipulated in the law organizing the profession, the LACPA council shall:
- Take the decision to write-off the CPA from the general list in the event the latter lost one of the conditions of membership according to article 8 of the law no. 364/94, or forfeit the right to practice the profession according to articles 7 and 8 of the present bylaws, and in the event of failing to pay subscriptions for two consecutive years.
- Take the decision to restore the right of the CPA to practice the profession upon the request of the latter, whenever the conditions for recovering are fulfilled according to the article 7 of the present bylaws.
- Provide practicing and non-practicing CPAs, who pay their annual subscriptions, with a maximum deadline ending by March 31st of each year, before one of the accredited insurance companies, a life and emergency insurance, by virtue of an annual collective contract to be renewed with the best conditions as deemed by the LACPA Council. CPA’s who pay their annual subscriptions within the said deadline shall state the names of the beneficiaries of the insurance indemnity, and LACPA shall incur on his/her behalf in such case, the value of the insurance policy, with 100% for the practicing CPAs and 50% for non-practicing CPAs. As per CPAs who pay their annual subscription outside such deadline, they shall incur the insurance policy on their account in the event they wish to obtain insurance.
- Compose permanent or temporary, ad hoc commissions, according to article 42 of the law organizing the profession, provided that it designates one its members as a coordinator for one or more committees, and establishes an internal regulation for its work.
- Establish exam curriculum for Traineeship.
- Discuss and approve the training programs proposed by the Institute of Educational and Academic Training relevant to LACPA.
- Peruse the official and administrative correspondence and periodical and annual reports.
- Approve the local and international agreements relevant to the profession.
- Administrate and invest the assets of LACPA and approve to open and close bank accounts.
- Coordinate with the chairman of the Board of Administration of the Mutual Fund, via the director of the Mutual Fund, whose designation is approved by the LACPA Council, according to clause 7 of the article 38 of the bylaws of the Mutual Fund.
Powers of the LACPA President and Members of the Council
Article 26: Powers of the LACPA President
The President shall have the following powers:
- Represent LACPA before the judiciary of all types and degrees, as well as the official administrative authorities, public and private bodies, and local, regional and international syndicates and organizations.
- Establish the agenda of LACPA and convene the same and chair its meetings.
- Implement the decisions of the LACPA Council and ensure and follow up the implementation of the resolutions of the General Assembly.
- Sign contracts and documents implementing the resolutions of the Council.
- Sign all administrative and official correspondence.
- Supervise the functioning of the LACPA committees.
- Sign with the treasurer on payment formalities.
- Exercise the powers provided for in the Regulations of Administration of Human Resources, work, Personnel Affairs, and the Financial System.
- Resolve the conflicts occurring between the LACPA members or with other parties, upon a mandate from the LACPA council in professional matters pursuant to the request of one the stakeholders and endeavour to resolve such conflicts personally or via a person mandated for such task, before proceeding with any legal action.
- Convene the LACPA council for an extraordinary meeting each time he/she deems necessary.
- Peruse the incoming correspondence registered at the LACPA clerk office and distribute the same to the relevant departments.
- Monitor the well-functioning of works at LACPA.
- Provide general guidelines to ensure the well-functioning of LACPA and follow-up and coordinate the works of all LACPA entities.
- Submit to the LACPA Council annual and periodical reports provided for by the LACPA law and regulations as well as the official and administrative correspondence.
- Unless the LACPA president was a chairman of the Board of Administration of the Mutual Fund, he/she shall coordinate with the Board of Administration of the Mutual Fund, personally or via a member of the ACPA Council mandated in this regard.
Article 27: Powers of the President Deputy
The president deputy shall replace the president in all works and powers in the event of absence.
In the event the position of president is vacant due to death, resignation, or any other legal reason, the president deputy shall call, within three days from the date of vacancy of the position, the candidate who competed with the president in the last elections and obtained the second highest number of votes, to fill the position until the end of the term. In the event the president deputy fails to perform such, the council shall meet within a maximum deadline of one week pursuant to the convening of three of its members at least, according to the article 38 of the law organizing the profession in order to take the decision to invite the said candidate to fill the position until the end of the term.
In the event such is not possible due to the lack of a candidate, or due to the refusal of the latter to accept the position, within one week from the invitation, the president deputy shall convene the LACPA council to an exceptional meeting allocated to convene for the election of an alternate president.
Article 28: Powers of the Secretary
- Draft minutes of the LACPA Council meetings and sign them along with the President and members.
- Draft minutes of the General Assembly meetings and sign them along with the President.
- Organize registers of the Council and keep all of its documents and papers.
- Organize the incoming correspondence and submit it to the president according to the mechanism determined by the president who shall inform the Council of such.
- Inform the stakeholders of the decisions of the LACPA Council and the General Assemblies.
- Undertake to keep the secrecy of the information, documents and papers which he/she bears, and refrain from disclosing the information to any party whatsoever, except for members of the LACPA Council.
- Sign with the president on attestations and certificates duly issued by LACPA.
Article 29: Powers of the Treasurer
- Administer funds and revenue collection of LACPA and sign with the president on payment formalities.
- Exercise the powers stipulated in the law organizing the profession and in the financial regulations of LACPA.
- Implement the decisions of the LACPA Council in financial affairs.
- Provide monthly statements to the LACPA Council regarding the financial situation of LACPA.
Article 30: Powers of the alternate Secretary and Treasurer
The alternate secretary shall exercise the powers of the original secretary in the event of absence from the meeting of the LACPA Council. In the event the original secretary failed to exercise his/her tasks, the alternative member shall undertake the tasks of the original secretary upon the suggestion of the LACPA president.
The alternate treasurer shall also exercise the powers of the original treasurer in the event of absence from the meeting of the LACPA Council. In the event the original treasurer failed to exercise his/her tasks, the alternative member shall undertake the tasks of the original treasurer upon the suggestion of the LACPA president.
Committees of LACPA
In addition to the committee of Exams stipulated in and composed according to article 8 of the Law organizing the profession no. 364/94, the LACPA council may, according to article 42 of the same law, form ad hoc committees which shall undertake the tasks of which it is charged according to the present bylaws, in addition to preparing studies and stating opinions on all tasks charged which may help the LACPA council in performing the tasks.
Article 32: Composition of Committees
Committees shall be composed by a resolution from the LACPA Council.
Except for the membership committee, which shall be composed of five members from the LACPA Council, the remaining members of the committees, whose number shall be between 7 and 11, shall be selected from amongst the CPAs registered on the general list, enjoying professional and academic qualifications appropriate to the competences of each committee.
Each committee shall elect, upon its composition, a chairman and a rapporteur from amongst its members, and the LACPA council shall elect from amongst its members a coordinator for one or more committees.
Article 33: Duration of work of the committees
The work of committees shall be relevant to the term of the LACPA Council and shall be considered dissolved with the end of such term, provided that they would pursue their work until the formation of new committees. The Council shall be entitled to form an alternate committee in the event of failure of the existing committee to perform its tasks.
The new Council shall be competent, upon its election, to renew or extend the duration of such committees or modify the same, as it deems necessary, in order to facilitate the works of LACPA.
Article 34: Meetings of the committees
Meetings of the committees shall be held and its recommendations and suggestions shall be issued according to their bylaws stated by the LACPA Council.
The Committee shall gather upon a convening from the coordinator in the first time and upon a convening from its chairman subsequently. The meeting of the committee shall be legal with the attendance of the absolute majority (half + 1).
Recommendations and suggestions shall be taken by consensus or by absolute majority and the coordinator shall not be entitled to vote.
The chairman of the committee shall deposit the minutes of the committee meetings before the coordinator who must submit the same to the LACPA president, and the latter must submit recommendations and suggestions to the LACPA Council.
Recommendations of the committees shall be advisory and not mandatory for the LACPA Council which shall be entitled to approve or reject any recommendation submitted to him/her as he deems necessary for the interest of LACPA upon a justified resolution, provided that it obliges the LACPA Council to notify the committee of his approving or rejecting decision.
The LACPA President and members of the LACPA Council shall be entitled to attend the meeting of any committee without the right to vote.
Article 35: Committees and competences thereof
The LACPA Council shall be entitled, at any time, according to article 42 of the law organizing the profession, form as much committees as deemed necessary, and shall determine the competences of each of them.
The current committees shall be ten, which are, in addition to the Membership Committee; Committee of Training; Committee of Academic Research and Development; the Magazine Committee; Committee of Communication and Public Relations; Committee of Investigation and Professional Discipline; Committee of Finance, Budgets and Statistics; Committee of Law Modernization; Committee of External Relations and Conferences; Technical Committee for Quality Control; and their competence and procedure of work shall be determined as follows:
- The Membership Committee:
Its meetings shall be valid with the presence of three members upon the convening of its chairman or the LACPA secretary in the event of absence and shall undertake the following:
- Peruse the membership applications submitted to LACPA and which must be referred to the committee within a three-day deadline from their date of receipt.
- Verify the completeness of the documents required to prove the availability of the membership conditions stipulated in article 8 of the law organizing the profession no. 364/94.
- State the findings of perusal and its recommendations on the applications referred thereto and submit the same to the LACPA president within a fifteen-day deadline from the date referral.
- The LACPA president must submit the applications to the LACPA Council within one week from the date of their deposit before him/her.
- The LACPA Council shall decide on the referred application with a maximal one-month deadline from the date of referral, provided that the decision is justified, and the application shall be considered accepted as a matter of right in the event the Council does not adjudicate it within the said deadline.
- The Training Committee
Its task shall consist of the following:
- Discuss and propose to organize academic, disciplinary and practical lectures for the practicing and non-practicing CPAs and for trainees.
- The coordinator and chairman of the committee shall assist the director of the Institute of Educational and Academic Training as per establishing the training program.
- The committee members may undertake the training and teaching tasks at the said institute.
- The committee shall coordinate, as per executing its task, with the Committee of Academic Research and Development.
- The Committee of Academic Research and Development:
Its task shall consist of the following:
- Perform academic studies and researches submitted by the LACPA Council, or with which it peruses occasionally, and are susceptible of: enhancing the auditing and verification methods, as per developing the work of CPAs by following on professional updates, and their relevance to the remaining financial, economic and development sectors, and activate their performance as per addressing and guiding the taxpayers towards their duties.
- Propose the unification of curricula with the academic and vocational teaching institutes in order to improve the professional level, and provide the academic requirements for practicing the profession.
- Prepare specialized studies in auditing and verification in order to empower LACPA to issue a certificate of CPA in auditing and verification.
- Peruse all standards of international and local accounting and auditing standards and professional standards and all regulations relevant to the profession and propose what is to be applied.
- Propose the acquirement of academic books and relevant professional researches and references in order to enrich the LACPA library.
- Propose to conduct seminars and research circles on the matters which interest CPAs.
- Contribute to the development of the academic and professional capacities of CPAs through exchanging viewpoints, researches and expertise.
- Coordinate with the Training Committee.
- The Magazine Committee:
Its task shall consist of the following:
- The Committee shall propose topics for articles, researches and studies which are to be published in each of the magazine issues.
- The committee shall state its opinion in the articles, researches and studies before publishing them in the magazine and provide communication with the experts and specialists to provide the magazine with academic and professional articles and researches.
- Committee of Communication and Public Relations:
Its task shall consist of the following:
- Suggest the determination of the available media to proliferate the professional practice within the public opinion.
- Propose the media policy of LACPA and its implementation means in coordination with the Magazine Committee.
- Establish media programs aiming at creating cooperation spirit between the LACPA members, in addition to establishing the basis of coordination and cooperation between LACPA and the licenced public and private institutions, unions, associations, and councils.
- Contribute to the organization of conferences, seminars, and lectures and prepare social events and activities.
- Establish protocols, ceremonies and receptions.
- Organize official and private visits.
- Establish programs for media interviews (Press, radio or TV).
- Committee of Investigation and Professional Discipline
Its task shall consist of the following:
- Develop and modernize the professional ethics and submit proposals in this regard, especially as per the independence and objectivity in the professional practice and abide by the ethical and professional standards.
- Investigate, upon the mandate of the LACPA council, the availability of professional practice conditions for practicing and non-practicing members and trainees, and their abidance by the law organizing the practice of the profession as well as its bylaws and the professional ethics. It may, in this regard, gather sufficient proof in all legal means to proof the violation of such provisions.
- Committee of Finance, Budgets and Statistics
Its task shall consist of the following:
- State the opinions on the draft budget, accounts and financial statements of LACPA.
- Submit propositions on the LACPA revenues.
- Submit propositions on developing and activating the financial regulations of LACPA.
- Suggest means and tools to administrate and invest LACPA assets.
- Establish statistical forms which are useful to LACPA, including but not limited to:
- Statistics on the economic sectors, locally and internationally.
- Statistics on the general and syndicate employment and working status.
- Coordinate with the official statistical resources and ministries and private statistical institutions for publication according to the forms.
- Perform statistics, information and studies on the international and local professional affairs and discuss the same for benefit and proliferation amongst CPAs.
- Gather statistics regarding activities and updates relevant to the banking, financial and fiscal sectors, as well as the corporate sector and submit useful suggestions in this regard.
- Contact research centres, administrations and public institutions to obtain the information which serve the LACPA targets, in order to establish the Lebanese Financial Standards on the financial studies for each economic sector for accreditation in the comparative financial studies.
- Committee of Legal Affairs Modernization:
Its task shall consist of the following:
- Submit suggestions to develop and modernize the LACPA bylaws, as well as internal, financial and administrative regulations.
- Review the fiscal laws and decrees, as well as the decisions, guidelines, and circulars issued by the Ministry of Finance, NSSF and BDL and submit suggestions in this regard.
- Study draft laws and decrees which are relevant to the profession, especially the fiscal decrees, the Commerce and Trade law, the Labour Law, the Monetary and Credit Code, Social Security and the Civil Procedure law, and submit suggestions in this regard.
- Committee of External Relations and Conferences
Its task shall consist of the following:
- Establish studies regarding the relevant Arab and foreign institutions in order to consolidate communication, cooperation and follow-up with such parties.
- Present suggestions on concluding local and international conferences and taking part therein and determining their topics.
- Quality Control Supervisory Commission – QCSC
Its task shall consist of the following:
- Supervise the implementation of quality control and peer review, especially the guide for quality control for auditing offices, and the guide for peer review, in such a way that complies with the requirements of ISQCI and ISA220.
- Previously approve the general program for peer review established by QCTC.
- Issue an annual report to be submitted to the LACPA Council on the works of peer review.
- Establish the Quality Control Technical Committee- QCTC, which shall work under the supervision and authority of the Commission and shall perform the peer review procedures as follows:
- Prepare the annual peer review
- Understand and assess the risk factors for quality control implementation review.
- Plan and implement the compliance tests.
- Determine the issues and results, as well as major and minor failures
- Conclusions on the determination of the type of report relevant to the auditing office.
- State and discuss the forms and surveys of quality control and peer review relevant to the auditing office.
Determine the detailed procedures for the composition and mechanism of work for such commission through a relevant bylaws issued by the LACPA Council.
- Audit Committee
The audit committee shall be composed of the chairman and two members which shall be designated by the LACPA Council, one of which shall be a member thereof, and the others shall be practicing CPAs enjoying a good reputation of expertise and competence.
The committee shall assist the LACPA Council in its tasks and supervisory role regarding the systems of internal control, internal auditing and the supervision of the integrity of financial statements, especially as per:
- Supervising the internal audit work.
- Reviewing the regulations and internal control policies and procedures and ensuring that the Council is dealing with the recommendations and observations relevant to weaknesses in internal control as suggested by the LACPA external auditors and the internal auditor.
- Suggesting the designation of the commissioners of control at LACPA.
- Perusing the plan including the audit plan established by the external auditors.
- Discussing the audited financial statements with the external auditors, as well as the observations and recommendations stated in their reports and report on them to the LACPA council. The Audit committee shall gather each six months at least and whenever need be.
- The Secretary General
A general secretary shall be designated to assist the LACPA in running the affairs as a full time staff member, within the administrative structure and the powers provided for in the regulations of work and personnel affairs, established by the LACPA council according to resolution no. 31, minutes 663 on the date of 29/08/2012, stated in the attached statement no. 2 stipulating the following:
Shall be undertaken by a staff member of the first category (the Secretary General) who shall assist the LACPA council under the authority and supervision of the LACPA president, and shall mainly undertake the following:
- Monitor the work in all departments and ensure their well-functioning and their abidance by the enforceable laws and regulations, and inform the LACPA president of its status whenever needed and suggest what is deemed useful for its well-functioning.
- Supervise the work of his/her direct subordinates and address them in such a way that improves their performance, and inform the LACPA president through periodical reports.
- Follow up on the resolutions of the Council which forwarded by the president by virtue of executional memories to be implemented and coordinated by the competent units, and inform the LACPA president on the execution of the resolutions and the obstacles which could hinder their execution and suggest solutions.
- Perform the tasks mandated by the president and practice the mandated powers according to the enforceable laws and regulations.
- Pursue the preparation of the LACPA annual draft project by the directorate of the financial and administrative affairs within the determined deadline and deposit the same before the LACPA president to submit it to the Council.
- Submit all reports and data forwarded by him/her to the LACPA president without any delay and follow up on the head of the units to deposit the periodical reports within their determined deadlines.
- Establish an annual report on the administrative and professional statuses of LACPA in the previous year including his/her proposed work programs in order to develop LACPA activities, to be submitted to the president during the month of January yearly.
- Perform, upon a mandate from the LACPA president, field visits on units and deliberate with their heads on their statuses and needs, and extend any complaint or suggestion to the LACPA president.
- Supervise the receipt of incoming mail registered before the secretariat, and submit the same daily to the president, and deliver the correspondence issued by the president to the relevant competent parties.
- Other personnel
The well-functioning of LACPA shall be ensured by personnel members who shall be subject to the regulations of work and personnel affairs established by the LACPA council. Such regulations shall determine the LACPA personnel, their employment conditions, their rights and obligations, and the circumstances of their end of services and all dispositions with govern their affairs, it shall also determine the administrative cadre and the job specification for the administrative units.
The Disciplinary Council
Formation of the Council
The Disciplinary Council shall be formed according to article 44 of the law organizing the profession, shall gather to peruse to the alleged violations or perpetrations by the CPA, which are forwarded by the LACPA council, according to the procedures and forms stated in the articles 45 to 53 of the said law.
The CPA elected for the membership of the Disciplinary Council must exceed the age of 50 and must have been a member of LACPA for fifteen years at least on the date of election.
Article 38: Referral to the council
The expert shall be referred to the Disciplinary Council upon a decision of the LACPA in the situations stated in article 45 of the law organizing the profession, upon an investigation to be undertaken by the president with a member of the LACPA council on the alleged violations or perpetrations by the CPA, upon perusing them and any file attached thereto.
Article 39: Investigation
Investigation shall be performed by questioning and discussing the CPA on the allegations against him/her, and by listening to the witnesses, if available, and the sayings and replies to the answers shall be registered in special minutes signed by the president of LACPA and the assisting member along with the CPA and the witnesses, and shall be forwarded to the LACPA council to take the decision of referral to the disciplinary council or to archive the issue.
Article 40: Trial
The trial before the disciplinary council shall be secret, and the CPA shall be entitled to solicit the assistance of a lawyer to defend him/her before the court, and may be replaced with a CPA registered on the general list, by virtue of a proxy or mandate drafted before the notary public. The Council shall be entitled to use all legal means for evidence, in order to take the adequate resolution.
Article 41: Penal pursuits
In the event the CPA referred to the Disciplinary Council requested his/her name to be written off from the general list, such shall not discontinue their trial before the Council and execute any decision issue as a result thereof, and the disciplinary pursuit does not prevent the penal pursuit whenever needed.
Article 42: Prohibited work
The violating CPA who is convicted to cease work shall be forbidden, during his/her ceasing period, from practicing personally, or via another CPA, any professional work or take part in the LACPA general assembly meetings.
Article 43: Registers
The register of the decisions of the Disciplinary Council shall be kept by the secretary of the Council.
Certificates and Attestations
Lists and Registers
Article 43 (bis):
The Council shall establish, according to article 20 and articles 18 and 61 of the law organizing the profession:
- A general list with the names of all CPAs which members to LACPA, whether Lebanese or non-Lebanese, practicing and non-practicing, according to a serial order stating the date of registration of each of them and any update to such registration.
- A list of the practicing CPAs with their registration number and date.
- A list of the non-practicing CPAs with their registration number and date.
- A list of the foreign non-practicing CPAs who fulfil all legal conditions.
- A register of the names of trainees stating the name of the office or CPA where the traineeship is performed, and the date end of the traineeship of each, and the date of registration in the general list.
- A special register of the companies practicing the profession, in serial order, where the names of the practicing CPAs mandated to sign for or on behalf of Lebanese civil companies shall be registered. Registration shall be limited to the Civil Companies which only include CPAs. Any person may peruse the special register of the companies which practice the profession at the headquarters of LACPA, and obtain a true copy of the registration of any company according to the article 20 of the law organizing the profession in consideration of fee to be determined by the LACPA Council.
Article 44: Other lists and registers
The LACPA council may establish additional lists or registers considered necessary for statistical or organizational objectives.
Cards – Certificates
Article 45: LACPA Cards and certificates
LACPA shall issue, on forms accredited by the LACPA council, various membership cards and certificates, according to the lists or registers provided for in chapter one of the present title as follows:
- Membership cards:
- The duly registered CPA shall be delivered a membership card bearing his/her registration number in the general list, the title and date of membership, signed by the president and the secretary.
- The traineeship shall be delivered a personal card bearing the number and date of registration in the list of Traineeship, signed by the president and the secretary.
- The card shall be withdrawn from its holder in the event his/her name was written-off the general list and he/she shall be prohibited from using the same under liability.
- Registration certificates
- The duly registered CPA shall be delivered a registration certificate bearing his/her registration number and date in the general list, signed by the president and the secretary.
- Civil companies practicing the profession, and registered in the special register provided for by the law, shall be delivered a certificate of registration bearing the number and date of registration of the company in the special register, signed by the president and the secretary.
- Certificate of appreciation
A certificate of appreciation shall be delivered:
- To each CPA who has been practicing for twenty years at least, without being subject to professional critics or disciplinary pursuit.
Such certificate shall be delivered by a decision from the LACPA Council.
- People enjoying prominent social statute and international reputation and known for their integrity and morality, in the event the LACPA Council deems it represents a moral asset for LACPA.
Such certificate shall be signed by the president and the secretary.
- Attendance certificates
An attendance certificate shall be delivered to the participants in Arab and international; conferences, seminars and sessions within Lebanon upon the suggestion of the General Secretary. Such certificates shall bear the title, date and venue of the conference, and the name of the participant and shall be signed by the president and the secretary.
Financial affairs of LACPA
Article 46: Revenues
The revenues of LACPA shall be formed and realized as follows:
- Fees of membership
- A 100,000-Lebanese pound fee shall be due for file opening, to be definitely paid upon submitting the membership application.
- The membership fee for trainees shall be determined to 1,800,000 Lebanese Pounds to be paid within fifteen days from the date of notifying them with the approval on the membership application.
- Annual subscription
- The annual subscription shall be paid within the first three months of the year, and the LACPA council shall be entitled to extend such duration until April 30th of the year.
- The annual subscription shall be determined as follows:
- 1,000,000 Lebanese Pounds for practicing CPAs.
- 500,000 Lebanese Pounds for non-practicing CPAs
- 500,000 Lebanese Pounds for trainees.
Donations shall be accepted from the official, local and international parties and bodies, upon the approval of the LACPA Council. They shall be registered in the budget revenues and credits shall be opened for them in the expenses in the event they were allocated for a given usage.
- Revenues from activities
Revenues of such activities shall be determined by the LACPA Council
- Fees for registration of companies
The fee of registration of professional companies shall be equivalent to 20% of the annual subscription for each associate as stated in paragraph A of the clause 2 of the present article. Such fee shall be paid within fifteen days from the notification of the approval of its registration.
- Other fees
Other fees shall be determined as follows:
- LACPA pin 5,000 LBP
- Attestation of membership 10,000 LBP
- Executable special attestation 20,000 LBP
- True copy 5,000 LBP
- Duplicate for replacement (Card certificate) 10,000 LBP
- Conference books 15,000 LBP
- File of the LACPA bylaws and regulations 25,000 LBP
- Conference CD 15,000 LBP
- LACPA guide CD 30,000 LBP
- Photocopy fees (up to 10 copies) 50 LBP
- Photocopy fees (more the 10 copies) 25 LBP
- Difference of subscription feed upon transfer from the list of non-practicing CPAs to the list of practicing CPAs 25,000 LBP
- Difference of subscription feed upon transfer from the list of non-practicing CPAs to the list of practicing CPAs 500,000 LBP
- The LACPA Council shall determine the value for the fees which have not been mentioned in the present article
Article 47: Expenses
LACPA expenses shall be subject to the basis provided for in the financial regulations.
Article 48: Refrainment
CPAs, companies practicing the profession, and the trainees who are members of LACPA, shall refrain from founding or acquiring membership to any other professional association whatsoever, except for academic associations and syndicates whose activities do not contradict with the activities of LACPA, provided that the latter is informed of such.
Article 49: Rights of heirs
In the event the CPA is deceased, his/her heirs shall be entitled to mandate one or more of his/her practicing colleagues to pursue his/her works or run his/her office, without any interference from their side, provided that the mandated CPA would sign his/her name and on his/her responsibility the works which he/she follows or prepares, within conditions to be agreed on by both parties, until the end of the fiscal year following the year in which the decease took place.
In the event one of the associates in a civil company deceases, the remaining associates may stay in the company provided that the rights of the deceased are liquidated. In the event there was only one associate remaining upon death, the latter must inform LACPA of such, and solicit the company to be written off from the list of companies in LACPA, within the year in which the death took place under penalty of liability, provided that the associate would pursue executing the commitments of the company towards other parties until the end of the deadline for submitting professional obligations incurring on the company unless the corporate bylaws stipulated otherwise.
Article 50: Number of the trainees at the CPA
- Each practicing CPA shall be entitled to accept a maximum of four trainees.
- The practicing CPA who accepts a trainee in his/her office must endeavour to provide him/her academic and behavioural training, and allow him/her to attend mandatory traineeship lectures at the Institute of Educational and Academic Training relevant to LACPA, provided that the traineeship hours are accounted within the working hours.
Article 51: Conditions for fees
- The CPA shall be entitled to fees for the works he/she performs in the scope of his/her profession, and to collect the expenses he/she pays for the mandated works.
- Fees shall be determined upon an agreement concluded between the CPA and his/her customer provided that it would not be less than the minimum amount determined by the LACPA Council for each work or task.
- In the event fees are not determined by a written agreement, the LACPA Council may be determined by a written agreement, the LACPA Council may be referred to in order to determine them, provided that such would observe the importance of the work performed by the CPA and the economic statute of the client.
- In the event of a written agreement between CPA and the client, the CPA shall be entitled to execute the same by the department of execution after obtaining the permission of the LACPA president.
Article 52: Registration of foreign CPAs
LACPA may register foreign CPAs on its general list according to the conditions stated in articles 18 and 19 of the law organizing the profession.
Article 53: Bureaus of Coordination:
The LACPA Council shall be entitled to establish a Bureau of Coordination in each of the Lebanese provinces (Mohafazats), in order to facilitate the relations and formalities between LACPA and CPAs working in such provinces.
Article 53 (bis): Membership of LACPA in the Mutual Fund
LACPA shall be a honorary member of the Mutual Fund and shall be represented as legal person with one person its Board of Administration.
The LACPA Council may nominate two other honorary members.
The honorary members shall be elected by the general assembly of the Mutual fund by secret ballot.
Article 54: Amendment of the bylaws
The present bylaws shall be amended by the General Assembly upon a proposal from the LACPA Council, or pursuant to a proposal submitted by one third of the members of the General Assembly who had paid their subscriptions according to article 21 of the Law organizing the profession.
Article 55: Enforcing the Bylaws:
The present bylaws shall be enforced upon approval of the general assembly and its posting of the billboard at the entrance of the LACPA headquarters or on the LACPA website.
Resolution of the Extraordinary General Assembly
On the date of 04/06/2014
 The Technical Committee for Quality Control shall refer to the Quality Control Supervisory Commission – QCSC
The Audit Committee was omitted by mistake