The Ministry of Corporate Affairs ( MCA ) has introduced ‘Online Proficiency Self-Assessment Test’ for Independent directors before the appointment with effect from December 1st, 2019.
The Central Government has substituted Rule 6 in the Companies (Appointment and Qualification of Directors) Rules, 2014.
According to the newly inserted provision, a person who intends to get appointed as an independent director in a company after such commencement, shall before such appointment, apply online to the institute for 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.
The Notification also said that, any individual, including an individual not having DIN, may voluntarily apply to the institute for the inclusion of his name in the data bank.
The Notification also stated that, “Every individual whose name is so included in the data bank under sub-rule (1) shall pass an online proficiency self-assessment test conducted by the institute within a period of one year from the date of inclusion of his name in the data bank, failing which, his name shall stand removed from the databank of the institute”.
“The individual who has served for a period of not less than ten years as on the date of inclusion of his name in the databank as director or key managerial personnel in a listed public company or in an unlisted public company having a paid-up share capital of rupees ten crores or more shall not be required to pass the online proficiency self-assessment test”, the Notification also added.
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