MCA exempts CA, CMA, CS & Advocate having 10 years’ experience from Online Proficiency Self-Assessment Test for becoming Independent Director by notifying Companies (Appointment and Qualification of Directors) Amendment Rules, 2021 vide Notification No. G.S.R. 579(E) dated 19th August, 2021.

MCA vide its Notification dated 19th August 2021 has issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021. These Rules came into effect on 20th August 2021.

Below is the brief on Effect of Amendment in the Companies (Appointment and Qualification of Directors) Rules, 2014.

Business concept image of a businessman clicking Self Assessment button

Now, after this amendment following also are exempt to pass online proficiency test to add his name in Independent Director Data Bank:

1. 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.’.

2. Following individual having qualification for at least 10 years as

(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.

The following amendments have been made in the aforesaid Rules. Analysis of which is given below:

S No. Rule Pre-Amendment Post-Amendment
1 First Proviso to

Rule    6(4)  of
Companies (Appointment and Qualification of Directors) Rules, 2014:

Compliances required by a person eligible and willing to be appointed

Provided that   an individual shall not be required to pass the online proficiency self-assessment test when he has served for a total period of not less than three years as on the date of inclusion of his name in the data bank,-

(B)  in the pay  scale of Director  or above  in the Ministry of Corporate Affairs or the Ministry of Finance or

Provided that an individual shall not  be   required  to  pass the online proficiency  self-assessment test when he has served for a total period of not less than three years as on the date of inclusion of his name in the data bank,-

(B) in the pay scale of Director or equivalent or above in any Ministry or Department, of the Central Government    or any

*******

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 19th August, 2021

G.S.R. 579(E).In exercise of the powers conferred by section 149 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:—

1. (1) These rules may be called the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021.

(2)     They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Appointment and Qualification of Directors) Rules, 2014, in rule 6, in sub-rule (4),—

(i) in the first proviso, for clause (B), the following clause shall be substituted, namely:—

“(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.”.

(ii) after the second proviso, the following proviso shall be inserted, namely:—

“Provided also that the following individuals, who are or have been, for at least ten 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.”.

[F. No. 8/4/2018-CL-I- Part-I]

K.V.R. MURTY, Jt. Secy.

Note:The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification number G.S.R. 259(E), dated the 31st March, 2014 and were last amended vide notification number G.S.R. 774 (E), dated the 18th December, 2020.

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