Self-Assessment Test – Independent Director

Self-Assessment Test – (Independent Director)

The Indian Institute of Corporate Affairs (IICA) under Section 150(1) of the Companies Act, 2013 to conduct Online Proficiency Self-Assessment. IICA by complying with Rule 6(1) of the Companies (Appointment and Qualification of Directors) Rules, 2014 will conduct this test through this Independent Director’s Databank.

Features

• Companies Laws
• Securities Laws
• Basic Accountancy
• Corporate Governance

Process Outline for Test

Individuals empaneled in the Independent Director’s Databank will have to follow these steps for attempting the Online Proficiency Self-Assessment Test:

1. Login into the Databank

2. Go to the dashboard

3. Select the slot as per your convenience for attempting the test

4. Attempt the test as per the slot booked

5. Get test result and reports published

6. There is no limit on the number of attempts to pass the test

7. Rules pertaining to Self-Assessment Test

Every individual whose name is included in the databank under sub-rule (1) shall pass an Online Proficiency Self-Assessment test conducted by IICA within a period of two years from the date of inclusion of his name in the databank, failing which, his name shall stand removed from this databank.

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:

1. as a director or key managerial personnel as on the date of inclusion of his name in the databank, in one or more of the following, namely:

(i) listed public company; or

(ii) unlisted public company having a paid-up share capital of rupees ten crore or more; or

(iii) body corporate listed on any recognized stock exchange or in a country which is a member State of the Financial Action Task Force on Money Laundering and the regulator of the securities market in such member State is a member of the International Organization of Securities Commissions; or

(iv) bodies corporate incorporated outside India having a paid-up share capital of US$ 2 million or more; or

(v) statutory corporations set up under an Act of Parliament or any State Legislature carrying on commercial activities; or

2. 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.

3. in the pay scale of Chief General Manager or above in the Securities and Exchange Board or the Reserve Bank of India or the Insurance Regulatory and Development Authority of India or the Pension Fund Regulatory and Development Authority and having experience in handling the matters relating to corporate laws or securities laws or economic laws

Provided further that for the purpose of calculation of the period of three years referred to in the first proviso, any period during which an individual was acting as a director or as a KMP in two or more companies or body corporates or statutory corporations at the same time shall be counted only once.

Provided also that the following individuals, who are or have been, for at least ten years:-

1. an advocate of a court; or

2. in practice as a chartered accountant; or

3. in practice as a cost accountant; or

4. in practice as a company secretary shall not be required to pass the online proficiency self-assessment test.

An individual who has obtained a score of not less than 50% in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test.

There shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.

There must be a gap of 1 day between 2 slots booked by an individual for attempting the online self-assessment test. If an individual fails to pass the test on a particular slot or misses the slot due to any reasons, the next slot can only be booked after 1 day from the previous booked slot date and time.

Scheme of Online Proficiency Self-Assessment Test

Total Marks – 100

Total No. of MCQs – 50

Total Test Duration – 75 Minutes

Sources – Indian Institute of Corporate Affairs