Relaxation to requirement of exam for independent director

In a recent notification it was announced by MCA that an independent director needs to give an exam if he wish to be appointed as an independent director.

However now an amendment has been made in few sections providing various relaxation.

In sub-rule (1), in clause (a), for the words “three months” the words “five months” shall be substituted.

Thus now the existing independent directors needs to give exam within 5 months from the date of original notification instead of 3 months as mentioned in original notification.

In sub-rule (4), for the first proviso the following proviso shall be substituted, namely:-

(a) listed public company; or

(b) unlisted public company having a paid-up share capital of rupees ten crore or more; or

(c) body corporate listed on a recognized stock exchange

Thus this amendment has added body corporate listed on recognized stock exchange.

In the second proviso, for the word “companies” the words “companies or bodies corporate” shall be substituted.

You can read the notification HERE.

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