ACCA under fire over controversial subscription plans

ACCA’s executive is facing opposition to its plans to transfer the power to increase subscriptions from its membership to its council.

The institute says the proposal, due to be voted on at the AGM on 18 May, will help managers plan medium and long term budgets.

But the measure has been branded undemocratic and lacking a compelling business plan.

ACCA chairman Christopher Forster said: ‘ACCA is founded on democratic principles which it holds dear to all it does.

‘The proposed change is not intended to remove that basic premise, it is merely a practical

solution to an issue council believes is important.’

If the council gains control, subscription rises will be limited to 5% a year, an increase on the current standard of £5 each year. Increases higher than 5% would still need the approval of members.

Opposition has come from dissident ACCA member Professor Prem Sikka, who has used his website to call on members to oppose the measure.

‘If a company wants to raise new money from its shareholders it has to put forward a financial plan and make a case for it. The ACCA has done no such thing,’ he said.

Last year the subscriptions were raised to £170 with 66.8% of members in favour.

Prof Sikka claims there is growing concern over the amount of power being concentrated around the ACCA council.

The executive is so concerned that a low turnout will derail the proposal, that it has sent an email

to members from Dennis Yeates, the chairman of its UK committee, imploring them to vote in favour.