The Ministry of Corporate Affairs (MCA) has exempted the Advocate, chartered accountant (CA), cost accountant (CMA), company secretary (CS) having at least 10 years from online proficiency self-assessment test for becoming an Independent Director.
The government has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021 which seeks to amend Rule 6 (4) of the Companies (Appointment and Qualification of Directors) Rules, 2014.
The notification substituted first proviso, for clause (B) in rule 6 (4) which says that 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, the matters relating to commerce, corporate affairs, finance, industry or public enterprises; or 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.
As per the Rules Every individual whose name is so included in the data bank shall pass an online proficiency self-assessment test conducted by the institute. However, as per the amendment the an advocate of a court; or in practice as a chartered accountant; or in practice as a cost accountant; or in practice as a company secretary who are or have been, for at least ten years shall not be required to pass the online proficiency self-assessment test.
They shall come into force on 19th August, 2021.
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