The Ministry of Corporate Affairs (MCA) on Tuesday has issued Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2020.
The Central government 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.
“In the Companies (Appointment and Qualification of Directors) Rules, 2014, in rule 6, in sub-rule (1), in clause (a), for the words “seven months” the words “ten months” shall be substituted,” the notification said.
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 Ten 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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