Montgomery, R. H.

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eGrove (Univ. of Mississippi)

University of Mississippi eGrove American Institute of Accountants Deloitte Collection 10-25-1935 Letter from R. H. Montgomery, President, American Institute of Accountants, to Members of the AIA Re: Amendments to By-Laws Adopted by the Institute at the Annual Meeting in Boston, October 15, 1935. R. H. Montgomery Follow this and additional works at: https://egrove.olemiss.edu/dl_aia  Part of the Accounting Commons American Institute of AccountantsEXECUTIVE COMMITTEEOctober 24, 1935.To the Members of theAmerican Institute of Accountants:Gentlemen:The executive committee transmits herewith proposed amendments to the by-laws of the Institute adopted unanimously by the members present at the annual meeting at Boston, October 15, 1935. Please indicate your approval or disapproval and return the ballot promptly.The amendments were recommended by your special committee on co-operation with other organizations consisting of Frederick H. Hurdman, chairman, Robert O. Berger, John F. Forbes, James J. Hastings and Walter A. Staub. The amendments deal with matters discussed in the negotiations between this special committee of the Institute and a committee of the American Society of Certified Public Accountants on the proposed unification of the two bodies.Members who are not familiar with these negotiations are referred to an article in the Bulletin of the Institute for September 16th entitled “One National Organization.”After publication of that article committees of the two national organizations approved a suggested plan for a merger from which the following paragraphs are excerpts:“It is proposed to merge the membership of the American Institute of Accountants, herein­after called the ‘Institute’, and the membership of the American Society of Certified Public Accountants, hereinafter called the ‘Society’, on the following basis:“(1) The Institute shall continue as the active national organization.“(2) The Institute shall be furnished with a list of the members of the Society in good standing as of August 31, 1935, certified by the president and secretary of the Society, Each of the members of the Society whose name appears on such certified list shall, upon subscribing to the by-laws and rules of professional conduct of the Institute, become a member or an associate of the Institute, as he elects, without examination or initiation fee.“(3) Amendments to the by-laws of the Institute shall be adopted as follows:(a) To permit the admission of members of the Society as provided in paragraph 2.(b) To require that after January 1, 1936, an applicant for membership or associate- ship in the Institute must hold a valid and unrevoked certified public accountant certificate issued by the legally constituted authorities of a state or territory of the United States of America, provided, however, that this by-law shall not in any way affect the membership rights of any present members of the Institute who do not hold such certificates.(c) To reduce the experience requirement for associates to two years.(d) To provide for the creation of an advisory council by the adoption of a new article as follows:The Institute shall invite presidents of the recognized societies of certified public accountants in the several states and territories of the United States of America to form an advisory council of society presidents............“(4) Contemporaneously with the certification of members provided in paragraph 2 hereof, the Society shall, by sufficient instruments, transfer to the Institute all of the property of the Society, real and personal and of every description. Thereafter the Society shall continue in existence as a corporation or shall be dissolved as the Institute may elect. In either event, the Society shall be inactive and shall take such steps as in the judgment of counsel for the Institute are necessary in order to carry out the spirit of this plan of merger in leaving the Institute as the active survivor of the two organi­zations.............”At the annual meeting at Boston on October 15th the members present resolved that the merger plan from which the above paragraphs are quoted was approved as a reasonable basis for the merger of the two national organizations.It had also been reported to the membership that at the annual meeting of the American Society early in October this plan had not been approved in full, but that the Society had suggested a somewhat different procedure.The Institute’s special committee, in the belief that certain features of the plan, if adopted, would enable the Institute better to serve the profession to the satisfaction of all certified public accountants, recommended that the following parts of the plan be put into effect immediately by appropriate amendment to the by-laws, regardless of whether or not the merger of the two existing national organizations might ultimately be effected:1—That after January 1, 1936, all applicants for admission to the Institute be required to possess a C. P. A. certificate.2—That provision be made for the creation of ah advisory council of state society presidents in order to permit closer co-operation between the Institute and the state societies.3—That the experience requirement for admission as an associate of the Institute be reduced from three to two years.Specific amendments to Article II, Sections 4 and 5 and a new Article XVI proposed for this purpose were unanimously approved and are submitted to the membership in the enclosed ballot under the provisions of Article XV of the by-laws.It should be clearly understood that the adoption of these amendments does not in any way effect a merger with the American Society of Certified Public Accountants. If the Society ulti­mately decides to carry out the plan approved by the Institute the members of the Institute will then vote on the question whether the by-laws should be further amended so as to admit all members of the Society in good standing without examination or initiation fee, as well as on any other points which may be involved in the consummation of the merger.With this possibility in mind the annual meeting adjourned to reconvene at Washington, D. C., on January 6, 1936, so that it may be possible to approve additional amendments to the by-laws at that time if a merger then seems feasible and desirable.Proxies given for the meetings on October 15 and 17, 1935 may be voted at the adjourned meeting January 6, 1936, unless revoked prior to that time.It will be helpful if the members will immediately write to the secretary expressing their views on the matter of regional representation in the council as outlined in the September Bulletin, and on any other points bearing on the possibility of one national organization.In addition to those described above, other amendments to the by-laws were approved at the annual meeting as submitted by the committee on by-laws, dealing with amendments to Article XIII, which would permit the annual meeting to be held either in September or October as the executive committee might decide. The executive committee will be governed in its decision by the probable climate of the place selected for the meeting.Yours truly,R. H. MONTGOMERY, PresidentJOHN L. CAREY, SecretaryAmerican Institute of Accountants135 Cedar Street, New YorkTo the Members of theAmerican Institute of Accountants:Gentlemen:At the annual meeting of the American Institute of Accountants held at Boston, October 15, 1935, certain amend­ments to the by-laws of the Institute were approved.According to the provisions of Article XV of the by-laws, amendments before becoming effective shall be submitted for a mail vote to the entire membership of the Institute and when approved in writing by a majority thereof shall be declared by the president to be effective. Mail ballots shall be valid and counted only if received within sixty days after date of mailing ballot forms from the office of the Institute.The propositions on the following pages were approved at the annual meeting and their purpose is explained in the accompanying report of the Executive Committee.It is earnestly requested that all members qualified to vote prepare their ballots and return them at the earliest possible moment. An addressed envelope, which does not require postage, is enclosed herewith.JOHN L. CAREY,Secretary.October 24, 1935.American Institute of AccountantsREFERENDUM BALLOT( Unsigned ballots will not be counted.)October 24, 1935.In accordance with the provisions of Article XV of the By-laws, mail ballots will be valid and counted only if received by December 24, 1935.QUESTION No. 1.   YESShall the By-laws, Article II, Sections 4 —— —— and 5, be amended to read as follows: NO ______ARTICLE II.Section 4. The following persons may qualify for examination and election as members of the Institute provided that they be not less than twenty-one years of age and shall present evidence of pre­liminary education satisfactory to the board of examiners:(a) Associates who shall meet the requirements stated in the follow­ing paragraphs of this section.(b) Accountants in practice who shall have been in practice on their own account or in the employ of a practising public accountant: (1) for not less than five years next preceding the date of application; or (2) for not less than ten years at least one year of which shall have next preceded the date of application; or(c) Accountants who shall have been engaged in accountancy instruct­tion in schools recognized by the board of examiners for a period of not less than five years next preceding the date of application, pro­vided(d) Continuity of an applicant’s public accounting practice, or ex­perience in accountancy instruction may be considered unbroken by a temporary interruption consisting of activities in the opinion of the board of examiners equivalent to public accounting, or accountancy instruction, but the period of such interruption shall not be considered as a part of the five years' practice, or experience in accountancy instruction, and further provided(e) After January 1, 1936, no applicant shall be admitted as a member unless he holds a valid and unrevoked certified public account­ant certificate issued by the legally constituted authorities of a state or territory of the United States of America or of the District of Columbia.Section 5. The following persons may qualify for examination and election as associates of the Institute, provided, that they shall be not less than twenty-one years of age and shall present evidence of preliminary education satisfactory to the board of examiners:(a) Accountants in practice who shall have been in practice on their own account or in the employ of a practising public accountant for not less than two years at least one year of which shall have next preceded the date of application; or(b) Accountants who shall have been engaged in accountancy instruction in schools recognized by the board of examiners for a period of not less than three years next preceding the date of application, provided(c) After January 1, 1936, no applicant shall be admitted as an associate unless he holds a valid and unrevoked certified public ac­countant certificate issued by the legally constituted authorities of a state or territory of the United States of America or of the District of Columbia.QUESTION No. 2.Shall a new article numbered XVI and reading as follows be added to the by-laws:ARTICLE XVI.YESNOThe Institute shall invite presidents of the recognized societies of certified public accountants in the several states and territories of the United States of America and the District of Columbia to form an advisory council of society presidents.The advisory council shall at all times consist of the state society presidents then holding office in their respective societies, but if a member of the advisory council is unable to attend a meeting of the advisory council a member of his society may be designated by the society to represent him at the meeting.At least once in each year the Institute shall convene the advisory council which shall choose its own chairman and secretary. A majority of the members of the advisory council shall constitute a quorum.The advisory council shall consider matters submitted to it from time to time by the council of the Institute and in its discretion shall make recommendations to the council of the Institute. A full report of the transactions of the advisory council shall be submitted to the membership of the Institute at the same time as committee reports.QUESTION No. 3.Shall Article XIII, Sections 1, 5 and 7, be amended to read as follows:YESNOARTICLE XIII.Section 1. There shall be a regular meeting of the Institute on the third Tuesday of September or the third Tuesday of October of each year as the executive committee shall decide. The fiscal year of the Institute shall end with the 31st day of August of each year.Section 5. Regular meetings of the council shall be held on the Thursday next after the date of the annual meeting of the Institute, the second Monday in April and the Monday next preceding the date of the annual meeting of the Institute.Section 7. Notice of each meeting of the council except the meeting on the Thursday after the date of the annual meeting of the Institute, shall be sent to each member of the council at his last-known address twenty-one days before such meeting. Such notice as far as practic­able shall contain a statement of the business to be transacted.Signature of MemberDate............................................... .

Letter from R. H. Montgomery, President, American Institute of Accountants, to Members of the AIA Re: Amendments to By-Laws Adopted by the Institute at the Annual Meeting in Boston, October 15, 1935.

https://egrove.olemiss.edu/cgi/viewcontent.cgi?article=1595&context=dl_aia

Letter from R. H. Montgomery, President, American Institute of Accountants, to Members of the AIA Re: Amendments to By-Laws Adopted by the Institute at the Annual Meeting in Boston, October 15, 1935.

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