Ministry of Corporate Affairs amended the Companies (Appointment and Qualification of Directors) Rules, 2014. As per the amended Rule 6(1) every individual who has been appointed as an independent director in a company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of three months from such commencement apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time.
Further, as per Rule 6(4) every individual whose name is so included in the data bank under sub-rule (1), shall pass an online proficiency self-assessment test conducted by the institute within a period of one year from the date of inclusion of his name in the data bank, failing which, his name shall stand removed from the databank of the institute. Exemption has been provided to an individual who has served for a period of not less than ten years as on the date of inclusion of his name in the databank as director or key managerial personnel in a listed public company or in an unlisted public company having a paid-up share capital of rupees ten crore or more from passing the online proficiency self-assessment test.
MCA has specified the “Institute of Corporate Affairs” at Manesar as the “Institute” for the purpose of this Rule. The said Rules were notified w.e.f 1st December 2019 and accordingly all Independent Directors will be required to get empanelled with the Institute by submitting an application on or before 29th February, 2020. Since everyone who are already an Independent Director as on 1st December, 2019 details about compliances and timelines are mentioned below for your quick reference:
|Compliance to be done by person who is already an Independent Director
|Particulars of Compliance to be done by company
|Particulars of compliance to be done by Director
|Company shall ensure that Independent directors name has been included in the data bank and sufficient compliance has been made.
|Submission of application with institute for inclusion of name in the data bank
|*Passing of examination conducted by institute
|Submission of declaration with BoD
|At the time of declaration u/s 149(7)
* Please refer above exemption from clearing online proficiency self-assessment test.
Everyone who have an approved Director Identification Number (DIN), will be required to create login ID and Password at www.mca.gov.in and register himself/herself with DIN. Once himself/herself get registered, he/she will be re-directed at the website of the Institute at https://www.independentdirectorsdatabank.in/ . For any query he/she is requested to click the link https://www.independentdirectorsdatabank.in/databank_help for brief process for inclusion of name in the Databank before visiting any of these sites. Once he/she has submitted an application with the Institute, it shall be sufficient compliance by all the Companies in which he/she are appointed as an Independent Directors. On successful submission, please inform all the companies wherein he/she are appointed as an Independent Director.