prpri Companies (Creation and Maintenance of data bank of Independent Directors) Amendment Rules, 2021 Companies (Creation and Maintenance of data bank of Independent Directors) Amendment Rules, 2021

MCA notifies Companies (Creation and Maintenance of data bank of Independent Directors) Amendment Rules, 2021 vide Notification no. G.S.R. 418(E) dated 18th June, 2021.

Analysis by ICAI

Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021

This is to inform you that The Ministry of Corporate Affairs (MCA) on June 21, 2021 has issued the Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021 to further amend the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019.

The Rules shall be applicable to existing Independent directors and individual who are willing to be appointed as independent director also the Companies which are required to appoint Independent directors under the Companies Act 2013.

It mentions that in case an individual delays his/her application to IICA for inclusion of name or for renewal, such inclusion or renewal may be allowed by IICA “after charging a further fees of one thousand rupees.

An analysis of the amendments in the aforesaid rules is given below:

S No. Rule Pre-Amendment Post-Amendment
1 Rule 3(7)(a) of Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 (7) The institute shall, with the prior approval of the Central Government, fix a reasonable fee to be charged from:-

(a) individuals for inclusion of their names in the data bank of independent directors; and

(7) The institute shall, with the prior approval of the Central Government, fix a reasonable fee to be charged from:-

(a) individuals for inclusion or renewal of their names in the data bank of independent directors; and

2 Rule 3(8) of Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 N.A. NEW INSERTION
In case of delay on the part of an individual in applying to the institute under sub-rule (7) 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, 2014 after charging a further fees of one thousand rupees on account of such delay.

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MINISTRY OF CORPORATE AFFAIRS

New Delhi

Notification No. G.S.R. 418(E), Dated: 18.06.2021

G.S.R. 418(E).—In exercise of the powers conferred by section 150 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules, to amend the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019, namely:-

1. Short Title and Commencement.─ (1) These rules may be called the Companies (Creation and Maintenance of data bank of Independent Directors) Amendment Rules, 2021.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019, in rule 3,-

(a) in sub-rule (7), in clause (a), after the words “for inclusion”, the words “or renewal” shall be inserted;

(b) after sub-rule (7), before explanation, the following sub-rule shall be inserted, namely:-

“(8) In case of delay on the part of an individual in applying to the institute under sub-rule (7) 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, 2014 after charging a further fees of one thousand rupees on account of such delay.”.

[F. No. 8/4/2018-CL-I]

K.V.R. MURTY, Jt. Secy.

Note : The principal rules were published in the Gazette of India, vide number G.S.R. 805 (E), dated the 22nd October, 2019.

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