Companies Appointment and Qulification of Director Rules in 2020

Companies Appointment and Qualification of Director Rules in 2020

 In the Companies (Appointment and Qualification of Directors) Rules, 2020 (hereinafter referred to as the principal rules), for Rule 6, the following rule shall be substituted, namely: –

“6. Compliances required by a person eligible and willing to be appointed as an independent director.?(1) Every individual 

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; 

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 the 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

(1) These rules may be called the Companies (Appointment and Qualification of Directors) Amendment Rules, 2020.

(2) They shall come into force on the date of their publication in the Official Gazette.

Provided that an individual shall not be required to pass the online proficiency self-assessment test, when he has served as a director or key managerial personnel, for a total period of not less than ten years, as on the date of inclusion of his name in the databank, in one or more of the following, namely:-

(a) a listed public company or

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

(c) body corporate listed on a recognized stock exchange:”.

(ii) in the second proviso, for the word “companies”, the words “companies or bodies corporate” shall be substituted.

Explanation: For the purposes of this rule,-

(a) the expression “institute” means the ‘Indian Institute of Corporate Affairs at Manesar’ 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;

(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;

(c) there shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.”