Now you need to give exam to be an independent director

written by ADMIN | October 28, 2019

Recently Ministry of Corporate affairs vide a notification Dt. 22.10.2019 made amendment in Companies (Appointment and Qualification of Directors) Rules, 2014 wherein now an independent director needs to first qualify an exam and then he can be appointed as a director.

The people who are already appointed as independent director on the date of this notification will within 3 months give such exam and people who wish to get appointed in future needs to give such exams before their appointment.

The person needs to apply online to the Institute i.e. 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.

Any individual, including an individual not having DIN may apply to institute for inclusion of their name in data bank, voluntarily.

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.

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.

Exclusion: This notification shall not apply to Individual who has served for a period of not less than ten years as on the date of inclusion of his name in the databank as director or key managerial personnel in:

  • listed public company or
  • in an unlisted public company having a paid-up share capital of rupees ten crore or more

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.

You can read the full notification HERE.

 

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