The Ministry of Corporate Affairs (MCA) notified on Friday that the Indian Institute of Corporate Affairs will charge a fee for both Renewal of names in the data bank of independent directors.
The MCA notified the Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021 which seeks to amend the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019.
In the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019, in rule 3, in sub-rule (7), in clause (a), after the words “for inclusion”, the words “or renewal” shall be inserted.
In other words, the Indian Institute of Corporate Affairs, shall with the prior approval of the Central Government, fix a reasonable fee to be charged from individuals for inclusion or renewal of their names in the data bank of independent directors.
After sub-rule (7), before explanation, the following sub-rule shall be inserted, namely “(8) In case of delay on the part of an individual in applying to the institute under sub-rule (7) for inclusion of his name in the data bank or in case of delay in filing an application for renewal thereof, the institute shall allow such inclusion or renewal, as the case may be, under rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 after charging a further fees of one thousand rupees on account of such delay.”
The amendment shall come into force from June 18, 2021.
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