Compliances by a Person Eligible and willing to be appointed as Independent Director
1. Every individual –
a. who has been appointed as an independent director (ID) in a company; or
b. who intends to get appointed as an ID in a company, shall before such appointment,
c. apply online to the institute (‘Indian Institute of Corporate Affairs at Manesar’ notified as the institute for the creation and maintenance of data bank of IDs) for inclusion of his name in the data bank for a period of
-
- 1 year,
- 5 years or
- for his life-time.
2. Any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.
3. Every individual whose name has been so included in the data bank shall file an application for renewal for a further period of 1 year or 5 years or for his life-time, within a period of 30 days from the date of expiry of the period, failing which, the name of such individual shall stand removed from the data bank of the institute.
4. No application for renewal shall be filed by an individual who has paid life-time fees for inclusion of his name in the data bank.
5. Every individual whose name is included in the data bank shall pass an online proficiency self-assessment test conducted by the institute within a period of Two years 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 from online proficiency self-assessment test
1. As on the date of inclusion of name in the data bank, he has served for a total period of not less than 3 years:
A. as a director or key managerial personnel, as on the date of inclusion of his name in the data bank, in one or more of the following, namely:-
(a) listed public company; or
(b) unlisted public company having a paid-up share capital of rupees 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
B. in the pay scale of Director or equivalent or above in any Ministry or Department, of the Central Government or any State Government, and having experience in handling,—
(i) the matters relating to commerce, corporate affairs, finance, industry or public enterprises; or
(ii) the affairs related to Government companies or statutory corporations set up under an Act of Parliament or any State Act and carrying on commercial activities.
C. in the pay scale of Chief General Manager or above in the Securities and Exchange Board or the Reserve Bank of India or the Insurance Regulatory and Exchange Board 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.
(For the calculation of the period of 3 years any period during which an individual was acting as a director or as a key managerial personnel in two or more companies or bodies corporate or statutory corporations at the same time shall be counted only once.)
2. Individuals, who are or have been, for at least 10 years:
(A) an advocate of a court; or
(B) in practice as a chartered accountant; or
(C) in practice as a cost accountant; or
(D) in practice as a company secretary,
shall not be required to pass the online proficiency self-assessment test.
3. An individual who has obtained a score of not less than 50% in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test. There shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.
Author Bio
what is d frequency of conducting of self assessment test of Independent directors