relaxation for independent directors

MCA has vide its amendment to the Companies (Appointment and Qualification of Directors), Rules, 2014 given relaxation to the independent directors.

First, they are now required to take the proficiency test within two years of his name being included in the data bank of the Institute recognized by the Ministry.

Secondly, exemption from proficiency test is given if somebody has been a Director in certain specified companies for a period of 3 years as on the date of the inclusion of his name in the data bank. Further some more exemptions is given in respect of the categories of companies/ bodies corporate in which the said director was an independent director such as body corporate listed on a foreign stock exchange which is recognized by the FATF, foreign bodies corporate having paid up share capital of USD 2 million or more, or statutory corporations set by a special act by the Parliament or certain designated officers like Directors in certain ministries such as corporate law, finance, heavy industries and public enterprises or Chief General Managers in SEBI, RBI, IRDA, PFRDA and having experience in corporate law matters .

The passing score has also been reduced to 50% from 60% previously.

This is much needed relief for the independent directors,

The notification can be found at the MCA site. i.e. http://www.mca.gov.in

Leave a comment

Filed under company law

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s