Ministry of Corporate Affairs (MCA) vide its Notification number G.S.R. 804(E) dated 22nd October, 2019 had amended the Companies (Appointment and Qualification of Directors) Rules for Registration of Independent Directors in the databank within 3 months effective from 1st December, 2019 by applying online to the Indian Institute of Corporate Affairs (IICA).
With effect from 28th February, 2020 vide its Notification number G.S.R. 145(E), sub rule (1), clause (a) of Rule 6 in the Companies (Appointment and Qualification of Directors) Rules, 2014, for the words “three months”, the words “five months” shall be substituted. Previously, last date for registration was 29th February, 2020 which has been extended to 30th April, 2020.
APPLICABILITY
These rules are applicable to Every Individual-
1) Who is an Independent Director in a company,
2) Who intends to get appointed as an Independent Director in a company.
STEP WISE PROCEDURE:
1. INDIVIDUAL REGISTRATION:
- Go to MCA.GOV.IN (MCA SITE) and LOG IN your username, password and captcha code,
- Go to 4th column of MCA SERVICES and click on INDIVIDUAL REGISTRATION under ID DATABANK SERVICES,
- Validate your DIN/PAN/PASSPORT NUMBER Details,
- Click on SEND OTP and ENTER OTP for mobile number,
- A PASSWORD will be generated and send on mobile number. Go to INDEPENDENT DIRECTORS DATABANK. IN and LOG IN E-mail ID, password and captcha code,
- FILL all the DETAIL on Personal Tab, Educational Tab, Professional Tab, Positions Tab and Declarations Tab,
- REVIEW the detail and SUBMIT it,
- PAY THE PRESCRIBED FEES for a YEAR (INR 5,000+ 18%GST=INR 5,900)/ 5YEARS (INR 15,000+18%GST=INR 17,700/ LIFETIME (INR 25,000+18%GST=INR 29,500).
- DOWNLOAD REGISTRATION CERTIFICATE and INVOICE for future reference.
NOTES:
- Within one year from inclusion of his name in the data bank, every individual whose name is included in the data bank shall pass an online proficiency self-assessment test with unlimited attempts by scoring atleast 60% marks.
- Exemption from passing online proficiency self-assessment test for an individual who has served 10 years or more as on the date of inclusion of name in the databank as director or KMP in a listed public company or in an unlisted public company having a paid-up share capital of Rs. 10 crore or more or body corporate listed on a recognized stock exchange.
- Renewal of membership 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 except for life time membership,
- Submit declaration of compliance to the Board, each time he/she submits the declaration under sub-section (7) of section 149 of the Act.
2. CORPORATE REGISTRATION:
- Go to MCA.GOV.IN (MCA SITE) and LOG IN your username, password and captcha code,
- Go to 4th column of MCA SERVICES and click on CORPORATE REGISTRATION under ID DATABANK SERVICES,
- Validate CORPORATE IDENTIFICATION NUMBER(CIN) of the Company,
- Carry your OWN DUE DILIGENCE for appointment of Independent Directors based on Professional Expertise, years of experience and industry domain.
(Author – Deepna Babal, Company Secretary from New Delhi can be contacted at csdeepnababal@gmail.com).
Author Bio
Dear Deepna,
What are the consequences if name of Independent Director is being removed from Databank either on account of not passing test or renewal?