MCA extends time limit to Independent Directors for inclusion of Name in Data Bank [Read Notification]

MCA - Data Bank - Independent Directors - Taxscan

The Ministry of Corporate Affairs ( MCA ) has extended three months to Independent Directors for the inclusion of Name in Data Bank.

The MCA has notified the Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2020 whereby Rule 6 has been amended and provide extra 3 months to independent director for passing online examination.

The Notification issued by MCA said that, “In the Companies (Appointment and Qualification of Directors) Rules, 2014, in rule 6, in sub-rule (1), in clause (a), for the words “ten months” the words “thirteen months” shall be substituted”.

The Central government had notified that the Rules will be applicable from June 23, 2020, and by this Registration of details of Independent Directors in Independent Directors Data Bank who were director on 1st December 2019 is been allowed till 30th September 2020.

Revised rules now provide that every individual who has been appointed as an independent director in a company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of thirteen months from such commencement apply online to the institute for the inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company.

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