‘Independent directors’ is a very important topic and there are various interpretation issues which everyone faces while explaining or reading the topic but still we have good examples which will ensure to understand this concept in a better manner.
It’s a Great Move of Ministry of Corporate Affairs which do regulates the function of corporate sector by taking exam of Independent director.
As per Provision of the Company Act 2013, Existing rules have the following changes:
i) Every individual who has been appointed as an Independent Director in a Company shall within a period of 3 (three) months* from 01/12/2019 or
ii) or who intends to get appointed as an Independent Director in a company after 01/12/2019 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 years or for his life-time, and from time to time take steps as specified in Companies (Appointment and Qualification of Directors) Rules, 2014 till he continues to hold the office of an independent director in any company.
*Please note MCA has issued Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2020 which are applicable from 29th April 2020 and by this Registration of details of Independent Directors in Independent Directors Data Bank who were director on 1st December 2019 is been allowed till 30th June 2020.
An independent director required to comply the corporate governance. And it is a responsibility of an Independent director to improve the corporate Governance.
The company which ensure that it came with complies with the laws protecting the interests of stakeholders and maintaining ethical standards in the company.
An Independent director is one of the key Persons of subject matter and as an expert he will be giving an expert opinion to the company, therefore he is involved in day-to-day operations of the company.
PROCESS OF REGISTRATION WITH DATA BANK FOR INDEPENDENT DIRECTOR.
Now we’re going to discuss the process of registration of independent director databank with the Ministry of Corporate Affairs.
THE FIRST STEP FOR REGISTRATION WITH THE DATA BANK:
A) Login with MCA.
The person must have Login ID and Password with MCA (Ministry of corporate Affairs) and has to create login ID and Password on www.mca.gov.in.
On the home page of Ministry of Corporate Affairs on the left side there is an option given for independent director registration. Once we will click on the tab for independent director then we are having a three option in that
1) from PAN number
2) from Din number
3) From passport that means we can apply from DIN number and also we can apply from PAN and if we do not have this both things then we can apply from the passport
Now after logging in we have to mention our Email ID and Mobile number, once the data filled in the data bank then OTP will come on the mobile then we have to feed this OTP received in the mobile and once it is verified, then finally our email id and mobile number will be updated in the data Bank,
Now once this is done then your login ID and password will be available with you for login in the MCA data Bank. Thereafter we have to visit another i.e. Indian Institute of Corporate Affairs (IICA). Website is iica.nic.in. After visiting Indian Institute of Corporate Affairs (IICA), we have to mention login and password which we have already got from ministry of corporate Affairs after login on the website of Indian Institute of Corporate Affairs (IICA), we need to fill all the data there as provided below.
1) All the personal details we have to fill
2) The educational details we have to fill
3) Earlier directorship details in the companies where he or she was previously appointed, if any
B) Period of Registration
After filing all the details, an option to perform is to recheck all the details and if we are satisfied that all the details have been filled properly then we can press on the submit button after submission we have to pay the fees, at the time of paying the fees there is an option for registration that you want to register
1) for 1 year or
2) for 5 years or
3) for Lifetime
C) Fees for Registration
1) if you want to register for one year fees is 5,000 + GST
2) if you want to register for 5 year then please is Rs .15,000 + GST
3) if you want to register for lifetime then fees is Rs. 25,000 + GST
The process for registering the first step with data bank is completed when all the details are filled in completely and payment is done.
SECOND STEPS FOR REGISTRATION WITH THE DATA BANK:
D) Clearance of Online Proficiency Self-AssessmentTest
Second step is the clearance of proficiency test as you know if the persons are not registered with the data Bank then they cannot take the exam so once this registration is completed then only they are eligible for the exam.
E) Modules & Mock Test:
Now once we are very familiar with the modules and syllabus then we can take the mock test so in the mock test there are 15 questions. Out of these 15 questions there will be nine questions for the Board Essentials and Six questions for the board practice.
We are discussing about the board essential and board practice because exam for registration of independent director data bank is divided into two parts that is board essentials and board practice once you are familiar with the modules and subject then you can do lot of practice with the mock test and once you got the so much of confident with the mock test then you can go for the online exam.
One of the important things for this exam is that for giving this exam do not required to go to any Exam centre and can be taken from our office or from our home, Now let’s talk about the proficiency test ,there will be question and each question will be carrying 2 marks so for passing this proficiency test we are required to get 60% that means power at least 30 question should be correct because if one question is for two marks then 30 question will be of 60 marks so this should be correct. There is no negative marking system.
F) Booking of Slot for Exam
There are 3 slots to choose from on any given day. The person taking exam will have to select one of the slots as per his or her convenience with the decided date. This slot adding to our convenience and whenever date and days we want to take this test we have to decide and how to take this exam now on the next step at the time of exam India Institute of Corporate Affairs (IICA) has prescribed some condition for exam, there should be a mandatory webcam in the computer or in the laptop for taking this exam.
During the exam complete recording will be done by the web time while taking the exam.
One of the software will be installed in your computer or laptop that will ensure that you are not using any other window while taking your exam because the software downloaded will record your screen also.
More convenience is given to take this exam at your home or at your office wherever you want you can take the exam but while taking this exam all the things will be recorded like all the screen on which you are taking exam. One has to keep in mind all these things while taking this exam. Your picture will also be clicked and will be saved in the record of the system.
G) Completion Certificate for online Proficiency Self Assessment Test:
Finally once the online Proficiency Self-Assessment Test is Completed Successfully then Indian institute of Corporate Affairs (Under the Aegis of Ministry of Corporate Affairs, Government of India) will provide you a Completion Certificate.
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