{"id":221482,"date":"2019-10-25T15:30:30","date_gmt":"2019-10-25T10:00:30","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=221482"},"modified":"2019-10-29T13:00:23","modified_gmt":"2019-10-29T07:30:23","slug":"all-the-independent-directors-will-have-to-take-an-online-proficiency-self-assessment-test-companies-appointment-and-qualification-of-directors-fifth-amendment-rules-2019","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/25\/all-the-independent-directors-will-have-to-take-an-online-proficiency-self-assessment-test-companies-appointment-and-qualification-of-directors-fifth-amendment-rules-2019\/","title":{"rendered":"All the Independent directors will have to take an online proficiency self-assessment test; Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019"},"content":{"rendered":"
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G.S.R. 804(E).\u2014<\/strong> In exercise of the powers conferred by Section 149 read with Section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:-<\/p>\n

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1. (1) These rules may be called the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019.<\/strong><\/span><\/p>\n

\u00a0 \u00a0 (2) They shall come into force with effect from the 01-12-2019.<\/p>\n

2. In the Companies (Appointment and Qualification of Directors) Rules, 2014 (hereinafter referred to as the principal rules), for Rule 6, the following rule shall be substituted, namely: \u2013<\/p>\n

\u201c6. Compliances required by a person eligible and willing to be appointed as an independent director.?(1) Every individual \u2013<\/p>\n

(a) who has been appointed as an independent director in a company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of three months from such commencement; or<\/p>\n

(b) who intends to get appointed as an independent director in a company after such commencement, shall before such appointment, apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company:<\/p>\n

Provided that any individual, including an individual not having DIN, may voluntarily apply to the institute for the inclusion of his name in the data bank.<\/p>\n

(2) 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 up to 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:<\/p>\n

Provided that no application for renewal shall be filed by an individual who has paid lifetime fees for the inclusion of his name in the data bank.<\/p>\n

(3) Every independent director shall submit a declaration of compliance of sub-rule (1) and sub-rule (2) to the Board, each time he submits the declaration required under sub-section (7) of Section 149 of the Act.<\/p>\n

(4) Every individual whose name is so included in the data bank under sub-rule (1) 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:<\/p>\n

Provided that the 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 a listed public company or in an unlisted public company having a paid-up share capital of rupees ten crores or more shall not be required to pass the online proficiency self-assessment test:<\/p>\n

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 key managerial personnel in two or more companies at the same time shall be counted only once.<\/p>\n

Explanation: For the purposes of this rule,-<\/strong><\/p>\n

(a) the expression \u201cinstitute\u201d means the \u2018Indian Institute of Corporate Affairs at Manesar\u2019 notified under sub-section (1) of section 150 of the Companies Act, 2013 as the institute for the creation and maintenance of data bank of Independent Directors;<\/p>\n

(b) an individual who has obtained a score of not less than sixty percent. in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test;<\/p>\n

(c) there shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.\u201d<\/p>\n

\n

Ministry of Corporate Affairs<\/strong><\/p>\n

[Notification dt. 22-10-2019]<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

G.S.R. 804(E).\u2014 In exercise of the powers conferred by Section 149 read with Section 469 of the Companies Act, 2013 (18 of <\/p>\n","protected":false},"author":8808,"featured_media":209748,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[38049,38048],"class_list":["post-221482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-rules_regulations","tag-companies-appointment-and-qualification-of-directors-fifth-amendment-rules-2019","tag-online-proficiency-self-assessment-test"],"yoast_head":"\nAll the Independent directors will have to take an online proficiency self-assessment test; Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/25\/all-the-independent-directors-will-have-to-take-an-online-proficiency-self-assessment-test-companies-appointment-and-qualification-of-directors-fifth-amendment-rules-2019\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"All the Independent directors will have to take an online proficiency self-assessment test; 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Rule 6 elaborates the process of creation of data bank by individuals offering to become\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/MicrosoftTeams-image-156.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/MicrosoftTeams-image-156.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/MicrosoftTeams-image-156.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/MicrosoftTeams-image-156.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/04\/MicrosoftTeams-image-156.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":228889,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/04\/30\/companies-appointment-and-qualification-of-directors-second-amendment-rules-2020-notified-by-mca\/","url_meta":{"origin":221482,"position":1},"title":"Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2020 — Notified by MCA","author":"Bhumika Indulia","date":"April 30, 2020","format":false,"excerpt":"G.S.R. 268 (E)\u2014 In exercise of the powers conferred by section 149 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:- 1. 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(1) These rules may be called\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/MCA.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":214837,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/18\/notification-companies-appointment-and-qualification-of-directors-second-amendment-rules-2019\/","url_meta":{"origin":221482,"position":3},"title":"Notification | Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2019","author":"Bhumika Indulia","date":"May 18, 2019","format":false,"excerpt":"G.S.R. 368(E).\u2014In exercise of the powers conferred by the second proviso to sub-section (1), sub-section (4), clause (f) of sub section (6) of Section 149, sub-sections (3) and (4) of Section 150, Section 151, sub-section (5) of Section 152, Section 153, Section 154, Section 157, Section 160, sub-section (1) of\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":220615,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/09\/mca-notifies-the-extension-of-last-date-of-filing-e-form-dir-3-kyc-companies-appointment-and-qualification-of-directors-fourth-amendment-rules-2019\/","url_meta":{"origin":221482,"position":4},"title":"MCA notifies the extension of last date of filing e-form DIR-3 KYC; Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2019","author":"Bhumika Indulia","date":"October 9, 2019","format":false,"excerpt":"Ministry of Corporate Affairs extends the submission date of e-form DIR-3 KYC or web form DIR-3 KYC-WEB, as the case may be, on or before the 14-10-2019. 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