Every individual who is already an Independent director and who intends to be appointed as independent director shall compulsorily pass Online Proficiency Self Assessment Test conducted by the IICA within a period of 1 (one) year from the date of registration.

Detailed Provisions

1. Application for registration:

Every individual

who is already an Independent director on board of any company shall within 3 months from 01/12/2019
(or)
who intends to get appointed as an Independent Director in any company after 01/12/2019 shall

apply online to IICA(Indian Institute of Corporate Affairs) in Manesar, Haryana for inclusion of his name in the databank.

Any individual may voluntarily apply to IICA for inclusion of his name in database.

2. Period of registration:

The application for inclusion of name in databank can be filed for 1yr/5yr/lifetime by paying the prescribed fees.

3. Requirement:

The Individuals whose name is included in databank shall compulsorily pass Online Proficiency Self Assessment Test within a period of 1 year of registration.

Failing which the name shall be removed by IICA.

4. Syllabus:

Companies law, Securities law, Basic Accountancy, and such other areas relevant to the functioning of an individual acting as an independent director;

5. Passing marks:

The individual shall obtain atleast 60% in aggregate.

6. Attempts:

There is no limit on number of attempts.

7. Exemption:

Any Individual who served for 10 years or more as on the date of inclusion of his name in databank as Director or KMP in

listed company
or
Unlisted public company having paid up capital of 10 crores or more

shall not be required to pass Online Test

    Condition– for calculating the period of 10 yrs- Individual acting as a director or KMP in 2 or more companies at the same time, shall be considered as one

8. Changes:

Any change in details shall be made online within a period of 30 days of such change.

9. Access to information:

Information will be provided by IICA, only to those companies which are required to appoint Independent Director after paying requisite fees

10. Compliance:

Director’s report shall include a statement regarding the opinion of the Board with regard to integrity, expertise and experience (including the proficiency ascertained in online test) of the independent directors appointed during the year.

Source:

1.MCA notification – Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019. (w.e.f 01.12.2019)

2.MCA notification –  Companies (Accounts) Amendment Rules, 2019. (w.e.f 01.12.2019)

3.MCA notification – Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019. (w.e.f 01.12.2019)

4. MCA notifies IICA to create & maintain data base related to independent directors

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Company: M&K Associates
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Member Since: 12 Jan 2018 | Total Posts: 20
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3 Comments

  1. Padmanabh says:

    Any individual may voluntarily apply to IICA for inclusion of his / her name in database.
    Please clarify if any individual wants to apply voluntarily to IICA for inclusion of his / her name, should have —
    (1) Director Identification Number; and / or
    (2) Digital Signature Certificate / pen drive.

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