The Ministry of Corporate Affairs Vide its notification dated 28th February 2020 has published the Companies (Appointment and Qualification of Directors) Amendment Rules, 2020. It shall come into force on the same day of publication.
The Amendment is brought under Rule 6 which deals with compliance required by a person eligible and willing to be appointed as an independent director in which the Time limit for existing independent directors to apply for registration/listing in online data bank has been extended from three months to five months. The deadline for filing application for registration is hereby extended from 1st March to 1st May.
Further, Every individual whose name so included in the data bank 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.
Provided that an individual shall not be required to pass the online proficiency self-assessment test, when he has served as a director or key managerial personnel, for a total period of not less than ten years, as on the date of inclusion of his name in the databank, in one or more of the following, namely:-
- listed public company; or
- an unlisted public company having a paid-up share capital of rupees ten crores or more; or
- body corporate listed on a recognized stock exchange.
Click here to read the Notification.
