A Brief Outline on Independent Director Registration

INDEPENDENT DIRECTOR REGISTRATION

Statutory Provision

As per Rule 6 of Companies [Appointment and Qualification of Directors] Rules 2014, Every independent director shall within 13 months form the date of commencement of the Companies [Appointment and Qualification of Directors] fifth amendment Rules 2019 ie. 1^st December 2019 or a person who intends to get appointed as independent director shall before appointment apply to the institute for inclusion of name in the databank for 1 year or 5 year or for his lifetime.

Time limit for registration as Independent Directors

Existing Independent Directors:-  within 31^st December 2020.

A person who intends to get appointed as independent director -Before appointment

In case of delay on the part of an individual in applying to the institute for inclusion of his name in the data bank or in case of delay in filing an application for renewal thereof, the institute shall allow such inclusion or renewal, as the case may be, under rule 6 of the Companies [Appointment and Qualification of Directors] Rules 2014after charging a further fees of one thousand rupees on account of such delay.”.

Online Proficiency test for Independent Directors

Every individual whose name is registered in the Data Bank shall pass an online Proficiency test within a period of Two (2) years from the date of inclusion of his name in the data bank, failing which, his name shall stand removed from this databank.

The requirement to pass the online proficiency test is exempted for the individual who has served for a total period of 3(three) years as on the date of inclusion of his name in the data bank, in one or more of the following, namely:

1. as a director or key managerial personnel (“KMP”), as on the date of inclusion of his name in the databank, in one or more of the following,:-

a) listed public company; or

b) unlisted public company having a paid-up share capital of Rupees 10 (Ten) crore or more; or

c) body corporate listed on any recognized stock exchange or in a country which is a member State of the Financial Action Task Force on Money Laundering and the regulator of the securities market in such member State is a member of the International Organization of Securities Commissions; or

d) bodies corporate incorporated outside India having a paid-up share capital of US$ 2 million or more; or

e) statutory corporations set up under an Act of Parliament or any State Legislature carrying on commercial activities; or

2. in the pay scale of Director or above in the Ministry of Corporate Affairs (“MCA”)or the Ministry of Finance (“MOF”) or Ministry of Commerce and Industry (“MOCI”) or the Ministry of Heavy Industries and Public Enterprises and having experience in handling the matters relating to corporate laws or securities laws or economic laws; or

3. in the pay scale of Chief General Manager or above in the Securities and Exchange Board (“SEBI”) or the Reserve Bank of India (“RBI”)or the Insurance Regulatory and Exchange Board or the Reserve Bank of India or the Insurance Regulatory and Development Authority of India or the Pension Fund Regulatory and Development Authority and having experience in handling the matters relating to corporate laws or securities laws or economic laws :

Renewal of Registration of Independent Directors:

Any individual who has registered for one or five years can apply renewal of their registration for a further period of 1 year or 5 years or for his life-time, within a period of 30 (thirty) days from the date of expiry of the period upto which the name of the individual was applied for inclusion in the data bank, failing which, the name of such individual shall stand removed from the data bank of the institute.

Fee details for registration and renewal of Independent Directors

The following are the fee details for independent director registration as well as renewal :-