Independent Director Registration on Databank

MCA has vide notification no. G.S.R. 804(E) dated 01^st December, 2019 introduced new rules called the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 for person eligible and willing to be appointed as an Independent Director. The rule states the compliances to be carried out before the appointment of independent director as well for those who are already appointed.

APPLICABILITY

These rules are applicable to:

Every Individual-

1) Who has been already appointed as an Independent Director in a company;

2) Who intends to get appointed as an Independent Director in a company.

COMPLIANCES:

• Apply online to institute for inclusion of his name in the data bank for a period of one year or five years or his life time till he continues to hold the office of an independent director;
• Membership to be renewed within 30 days from the date of expiry of period upto which the name of the individual was applied for inclusion in the data bank;
• Every independent director to submit a declaration of compliance with these rules to the Board, each time he submits the declaration required under sub-section (7) of section 149 of the Act.
• Every individual whose name is included in data bank shall pass an online proficiency self-assessment test within one year from inclusion of his name in the data bank.

Notes:

1. An individual not having any DIN may also apply for inclusion of his name voluntarily;

2. No renewal required for individual who has paid life time fees;

3. An individual who has served 10 years or more as on date of inclusion of name in the databank as director or KMP in a listed company or in an unlisted public company having a paid-up capital of Rs. 10 crore or more shall be exempted from passing online proficiency self-assessment test.

PROCESS OF REGISTRATION:

1. Log in to MCA website mca.gov.in and insert your MCA credentials;

2. Go to MCA services and click on ID databank service- Individual registration;

3. Enter your DIN/Pan number;

4. Send OTP to your mobile number;

5. After entering OTP, you will receive your ID and password;

6. Go to independentdirectorsdatabank.in and login with the id and password received in your mobile number;

7. Fill up all the mandatory details and click on submit;

8. Pay the prescribed fees.

Note:

• Currently the fees for 1 year subscription is Rs. 5000 plus 18% GST. Fee plan for 5 years is yet to be notified.

IMPORTANT TIMELINES:

1. End Date for empanelment of existing Independent Directors – February 29, 2020

2. Start date for Mock (Practice) Test – December 2nd, 2019 onwards

3. Start date for online proficiency self-assessment test – March 01, 2020

4. Start date for corporate access and search facility – March 01, 2020.

PROFICIENCY SELF ASSESSMENT TEST AND SUBJECTS:

• Every individual is required to an online proficiency self-assessment test within one year from inclusion of his name in the data bank.
• an individual who has obtained a score of not less than sixty percent in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test.
• individuals can make multiple attempts for self-assessment even after passing it with minimum score of 60%.