On 10th June, 2022, Ministry of Corporate Affairs (MCA) notified Companies (Appointment and Qualification of Directors) 2nd Amendment, Rules, 2022. These rules amend the Companies (Appointment and Qualification of Directors) Rules, 2014 with immediate effect.
Rule 6 elaborates the process of creation of data bank by individuals offering to become Independent Directors. Data bank platform has been developed under the Companies Act, 2013, Section 150, to enable Independent Directors to avail opportunities, develop skills, acquire knowledge by e-Learning on the corporate boards. Developed by Indian Institute of Corporate Affairs (IICA) under the MCA, access to Data bank is allowed after the conduct of an online proficiency self-assessment test of the Independent Directors, which became effective from 1st March, 2020.
Key Points:
With the modification in Rule 6(5):
- Individuals/ institute/ association, who require his name to be removed from the databank, will now have to pay “one thousand rupees” in place of “reasonable fee”.
- Online proficiency self-assessment test is mandated for any individual to get himself enrolled in the databank.
- Before passing the online proficiency self-assessment test, for a period of one-year, from the date of restoration, name of the person will fall into a separate restored category under Rule 6 (5) (i) & (ii).
- Within this one-year period, the person has to clear the proficiency test, failing which, his name shall be removed from the databank and he has to take-up the procedure to register himself over the databank afresh as per Rule 6 (1).
