Notice Type
General Notices
Notice Title

Notice of Decision of the Disciplinary Tribunal

of the Institute of Chartered Accountants of
New Zealand-Member Guilty of Breaching
the Rules and/or Code of Ethics
At a hearing of the Disciplinary Tribunal of the Institute
of Chartered Accountants of New Zealand on the 10th day
of April 2002, the Tribunal recorded that John George Russell, a member of Auckland, pleaded not guilty to charges:
THAT in terms of the Institute of Chartered Accountants Act 1996 and the Rules made thereunder, and in particular Rule 21.30, the member:
? has been guilty of misconduct in a professional capacity, and/or he has breached the Rules of the Institute.
IN THAT
? being a member of the Institute of Chartered Accountants of New Zealand, he has offered accounting services to the public through the use of a company called Mahalo Limited trading as Commercial Management, when:
1. in breach of Rule 18.2, he did not and does not hold
a certificate of public practice; and/or
2. he has practised under a trade or association name, namely Commercial Management, without leave of the council as required by Rule 19.2 (b);
3. in respect of Mahalo Limited, and without the consent of the council as required by Rule 19.2 (c) (i), he is a director of the said company;
4. in respect of Mahalo Limited and without the consent of the council as required by Rule 19.2 (c) (iii), he directly or indirectly controls that company.
The Tribunal, in a reserved decision issued on the 6th day of May 2002, found the member guilty of the charge that he had breached the Rules of the Institute.
In reaching its decision, the Tribunal found that there had been a deliberate attempt by the member to evade his obligations under the Rules and, as such, the member was also guilty of misconduct in a professional capacity.
Orders of the Tribunal
At a further hearing of the Disciplinary Tribunal on the
30th day of May 2002, the Tribunal considered submissions and submissions in response in relation to penalty and publication, and made the following orders:
(a) Having regard to the fact that he had been found guilty of similar charges on two previous occasions and had not altered his behaviour as a result, pursuant to Rule 21.31 (a) of the Rules of the Institute of Chartered Accountants of New Zealand, the Disciplinary Tribunal ordered that the name of John George Russell, of Auckland, be removed from the Institute's Register.
(b) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the Disciplinary Tribunal ordered that John George Russell pay to the Institute the sum of $12,733.00 (inclusive of G.S.T.) in respect of the costs and expenses of the hearing before the Disciplinary Tribunal and the investigation by the Professional Conduct Committee.
In accordance with Rule 21.35 of the Rules of the
Institute of Chartered Accountants of New Zealand,
the Disciplinary Tribunal directed that the decision be published in the Chartered Accountants Journal of
New Zealand, the New Zealand Gazette, the New Zealand Herald and the National Business Review with mention
of the member's name and locality.
Right of Appeal
Pursuant to Rule 21.41 of the Rules of the Institute of Chartered Accountants of New Zealand which were in force at the time of the original notice of complaint, the member may, not later than 14 days after the notification of this Tribunal to the member of the exercise of its powers, appeal in writing to the Appeals Council of the Institute against the decision.
No decision, other than the direction as to publicity, shall take effect while the member remains entitled to appeal or while any such appeal by the member awaits determination by the Appeals Council.
Dated this 31st day of May 2002.
MARK SHENNAN, Secretary, Disciplinary Tribunal.