The Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019:
MCA has issued the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 for amending Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 by providing Compliances required by a person eligible and wiling to be appointed as an Independent Director vide its Notification dated October 22, 2019
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 three months from such commencement;
or
who intends to get appointed as an independent director in a company after such commencement, shall before such appointment, apply online to the Institute (Indian Institute of Corporate Affairs at Manesar) 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: Provided that any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.
*Sub rule (2) Every individual whose name has been so included in the data bank shall file an application for renewal for a further period of one year or five years or for his life-time, within a period of thirty days from the date of expiry of the period upto which the name of the individual was applied for inclusion in the data bank,failing which, the name of such individual shall stand removed from the data bank of the institute.
Provided that no application for renewal shall be filed by an individual who has paid life-time fees for inclusion of his name in the data bank.
(3) Every independent director shall submit a declaration of compliance of sub-rule (1) and sub-rule (2) to the Board, each time he submits the declaration required under sub-section (7) of section 149 of the Act.
(4) 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 data bank of the institute.
Provided that 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 data bank 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 crore or more shall not be required to pass the online proficiency self-assessment test:
Provided further that for the purpose of calculation of the period of ten years referred to in the first proviso, any period during which an individual was acting as a director or as a key managerial personnel in two or more companies at the same time shall be counted only once.
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A) An individual who has obtained a score of not less than sixty percent. in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test;
(B) there shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.
Link to the notification Click Here
By: Orporate
MCA has issued the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 for amending Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 by providing Compliances required by a person eligible and wiling to be appointed as an Independent Director vide its Notification dated October 22, 2019
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 three months from such commencement;
or
who intends to get appointed as an independent director in a company after such commencement, shall before such appointment, apply online to the Institute (Indian Institute of Corporate Affairs at Manesar) 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: Provided that any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.
*Sub rule (2) Every individual whose name has been so included in the data bank shall file an application for renewal for a further period of one year or five years or for his life-time, within a period of thirty days from the date of expiry of the period upto which the name of the individual was applied for inclusion in the data bank,failing which, the name of such individual shall stand removed from the data bank of the institute.
Provided that no application for renewal shall be filed by an individual who has paid life-time fees for inclusion of his name in the data bank.
(3) Every independent director shall submit a declaration of compliance of sub-rule (1) and sub-rule (2) to the Board, each time he submits the declaration required under sub-section (7) of section 149 of the Act.
(4) 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 data bank of the institute.
Provided that 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 data bank 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 crore or more shall not be required to pass the online proficiency self-assessment test:
Provided further that for the purpose of calculation of the period of ten years referred to in the first proviso, any period during which an individual was acting as a director or as a key managerial personnel in two or more companies at the same time shall be counted only once.
*Must read*
A) An individual who has obtained a score of not less than sixty percent. in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test;
(B) there shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.
Link to the notification Click Here
By: Orporate
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