The Ministry of Corporate Affairs (MCA) on October 22, 2019, issues the Companies (Accounts) Amendment Rules, 2019 to further amend the Companies (Accounts) Rules, 2014 which shall be effective from 1st December 2019
Under Rule 8 of the Companies (Accounts) Rules, 2014, a new clause Rule 8(5)(iiia) has been inserted. The Rule speaks about the matters to be included in Board’s report. The amendment adds to the contents of board report-
“A statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year”
An explanation has been given for the above term “Proficiency”
“Proficiency” means the proficiency of the independent director as ascertained from the online proficiency self-assessment test conducted by the institute notified under Section 150(1).
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