Independent Director— Time extended to apply with Institute adding name in Data Bank for ID – On or before  June 30, 2020

On April 29, 2020 , the Ministry of Corporate Affairs notified an amendment in the Companies (Appointment and Qualification of Directors) Rules, 2014 (the Rules)  as the Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2020 ( the 2nd Amendment Rules, 2020).

The 2nd Amendment Rules, 2020 has brought amendment in Rule 6 which deals with compliances required  by any individual who is eligible and willing to be appointed as an Independent Director to apply online with the Indian Institute of Corporate Affairs at Manesar, for inclusion of his name in the data bank within seven months ( earlier it was five months) . This seven months is from December 1st  2019 when the 5th amendment Rules 2019  was notified . Now the extension of time is given and the new date to apply online with institute for inclusion of name in the Data Bank of Independent Director is June 30, 2020 .

On 22nd October, 2019, Rule 6 was of the Rules was amended as the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 which was made effective from 1st December 2019 , notifying a new requirement of passing of proficiency test in one year from the date of application of inclusion of name online with the Indian Institute of Corporate Affairs at Manesar, an Institute , which will be creating and maintaining data base for Independent Director. Such application to the Institute to be made in 3 months from the date of notification that is three months from December 01, 2019 so by February 28, 2020 .  He can include his name for a period of 1 year or 5 year or for his life-time and from time to time he shall take steps to renew it as long as he continues hold the office as an Independent Director in any company.

However , further on February 28, 2020 , MCA has notified and extended the period of making such application with the Institute for a further period of 5 months ( earlier it was  3 months) . This five  months is from December 1st  2019 when the 5th amendment Rules 2019  was notified . The extension of time was given till April 30, 2020 

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Qualification: CS
Company: Amita Desai & Co
Location: Mumbai, Maharashtra, IN
Member Since: 04 May 2017 | Total Posts: 27
Amita Desai is a Fellow Company Secretary and Insolvency professional in practice since 1995 Her expertise lies in following .She can be reached at amita@amitadesai.com 1. Business and Legal Advisory on Corporate Law 2. Foreign Exchange Management Act 3. Drafting and Appearance before Tribunal View Full Profile

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