Independent Directors Serve as an important institution of Corporate Governance Contributing Significantly at the boards by bringing diverse set of skills with an independent judgment on significant issues. Independent Directors act as a guide, coach , mentor to the company, Their role broadly includes improving corporate credibility& governance standards by working as a watchdog and help in managing risk.
Independent Director plays an active role in various committees set by company to ensure good governance.
Ministry of Corporate Affairs has realized the importance of strengthening the institution of Independent Directors and enhancing its effectiveness by way of creating a pool of skilled professionals to act as Agents of Change. MCA along with Indian Institute of Corporate Affairs (IICA)has developed a databank of Independent Directors in accordance with the Provisions of Section 150 of the Companies Act 2013.
Page Contents
- Objectives of Data Bank For Independent Directors
- Features of Data Bank For Independent Directors
- Compliances required to be done by person eligible and willing to appoint as an independent director:
- Creation and Maintenance of Data Bank For Independent Directors
- Process for applying in Independent Directors Databank For Individuals at MCA Portal.
- Process at Independent Directors Databank for Individuals
- Process for Corporates at MCA Portal
- Process for Corporates at Databank
Objectives of Data Bank For Independent Directors
The Data Bank focuses on the following key Objectives
1. Develop a databank of Independent directors by way of empanelment of existing Independent directors as well as the professionals aspiring to become independent directors.
2. Build Capacities of individuals by delivering eLearning courses on topics related to corporate governance, regulatory framework, financial prudence, and other important aspects.
3. Provide a platform to individuals to help them acquire knowledge, develop new skills, assess their understanding, and apply best practices.
4. Creates an eco-system of individuals looking for opportunities and corporate requiring to appoint independent directors.
Features of Data Bank For Independent Directors
1. Empanelment of professionals acting as Independent Directors
2. Empanelment of professionals with/without DIN who wish to serve as Independent Directors
3. Online courses offered through an integrated Learning Management System (LMS)
- Board essential course
- Board practice courses
4. Newsletter and knowledge resources for continued professional development
5. Profile sharing for corporate access for helping them appoint well-trained and informed Independent Director
Compliances required to be done by person eligible and willing to appoint as an independent director:
1. Every individual who has been appointed as an independent director in a company on the date of commencement of this rule shall within a period of three months from such commencement or who intends to get appointed as an independent director in a company after such commencement shall before such appointment.
Apply online to the institute for inclusion of his name in the data bank for a period of one year or five year or for his lifetime.
2. Every individual whose name has been included in the data bank shall file an for renewal for a further period of one year or five year or for his lifetime within thirty days from the date of expiry, failing which the name of such individual shall stand removed from the data bank of the institute.
3. Every independent director shall submit a declaration to the compliance of abovementioned points to the board.
4. Every individual whose name is included in data bank shall pass an online proficiency self-assessment test conducted by the institute within a period of one year from inclusion of name failing which name shall stand removed from databank.
5. Individual has to obtain sixty percent in in aggregate in the online test.
Provided that if an individual who served for period of ten years or more as on date of inclusion of name in the databank as director or Key Managerial Person in a listed public company or unlisted public company having paid up capital of ten crore rupees or more not require to pass the online proficiency self assessment test.
Creation and Maintenance of Data Bank For Independent Directors
The data bank shall contain the following details of each person included in the data bank-
(a) DIN/PAN
(b) Full name & Fathers name
(c) Date of birth
(d) Gender
(e) Nationality
(f) Occupation
(g) Full address with PIN code
(h) Contact no.& mail id
(i) Educational and professional qualifications
(j) Experience or expertise if any
(k) Any pending criminal proceedings as specified In section 164
(l) List of LLP in which he is or was a designated partner along with its name, nature of industry duration with dates
(m) List of companies in which he is or was director along with its name, nature of industry, nature of directorship, duration with dates
The information available in the data bank shall be provided only to companies required to appoint independent directors after paying reasonable fees to the institute.
A disclaimer shall be conspicuously displayed on the website hosting the data bank that a company must carry out its own due diligence before appointment of any person as an independent director.
Process for applying in Independent Directors Databank For Individuals at MCA Portal.
1. Login to MCA Portal
2. Go to” ID Databank Registration” Section under MCA services and click on “Individual Registration”
3. Enter DIN/PAN/Passport details and click on submit
4. Enter e-mail id & mobile no. (if not auto populated) enter country code and click on send OTP
5. Enter OTP and click on verify OTP
6. Upon successful verification click on Proceed button to receive credentials for Databank in e-mail & mobile
Process at Independent Directors Databank for Individuals
1. Login to Independent Directors Data bank
2. Fill Profile With Personal, Educational, and Experience Details and Submit Declaration.
3. After submitting details ,Pay subscription fee.
Process for Corporates at MCA Portal
1. Login to MCA Portal
2. Go to ID Databank Registration Section under MCA Services and click on “Corporate Registration”
3. Enter CIN Details and click on submit
4. E-mail id will be pre-populated click on send OTP
5. Enter OTP and click on Verify OTP
6. Upon successful verification click on proceed button to receive credentials for Databank in email.
Process for Corporates at Databank
1. Login to Independent Directors Databank
2. Fill your Company details, assign up to 2 designated officers, who will have access to Databank. Accept terms and conditions
3. After submitting details, Pay subscription fee.
Author Bio
Reg.Mca Ind. Director Mca empanelment
Dear learned colleague
Greetings your article on the subject is interesting.
Please guide me as to updating my DIN 01064520 exp dt.28th October 2019.kindly favour me reply dr. Vedula Gopinath Arbitrator vgnath@gmail.com 9866013121