FAQs on independent director

CS Divesh Goyal , Last updated: 15 March 2021  

Independent directors have a crucial role to play for keeping good governance practices. In order to ensure the basic literacy of company law, securities law and accountancy among Independent directors and to boost Corporate Governance standards in India, the Govt. has decided to introduce online proficiency self-assessment test for Independent directors.

FAQs on independent director

Subsequently, MCA has notified the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, and the Companies (Accounts) Amendment Rules, 2019. The notifications shall come into force with effective from Dec 01, 2019.


1. To get empanel with Data Bank of Independent Director DIN is mandatory or Not?
DIN is not mandatory for empanelment of any person for Data Bank of Independent Director. If a person not having DIN can get empanel with PAN.

2. A foreign national don't have DIN and PAN. How can he get empanel for the same?
He can get empanel by passport no and providing basic contact information, such as email, mobile No. etc.

3. How to create Login Id and password on Independent Director's Databank?
Log in ID and Password shall be share by the authority on Mobile No and email ID.

4. Which type of details required to fill in the form?
• Personal Details
• Professional Details
• Education Details


5. Whether need to disclose director's ship in all the Companies?
Person have to mention details of companies in which He Is Or Was directors along with following information:
• Name of Company
• Nature of Industry
• Nature of Directorship
• Duration of tenure with dates

6. Whether need to disclose details of designated partners in all the LLP?
Person have to mention details of LLP in which he is or was Designated Partner along with following information:
• Name of LLP
• Nature of Industry
• Duration of tenure with dates

7. Which information of person shall be displayed on Data Bank?
In the declaration section, you also have an option to select the information that you want to be displayed on the databank.

8. What shall be subscription plans for the Data Bank?
There are three different subscription plans available - 1 Year, 5 Years, and Life time.

9. If a person is Independent director since years. Need to get enroll himself with Data Bank or need to pass examination.
Yes, Existing Independent Directors also required empanelling themselves for data bank and needing to pass examination.

10. Whether there is any limit on no. of attempt of proficiency test?
There is no limit on the number of attempts an individual may make for passing the online proficiency self-assessment test.


11. If Individual fails to pass the test with in 1 year of addition of his name in data bank. What shall be consequences?
In case the above test is not passed by such individual, his/her name shall stand removed from the data bank by the Institute.

It Means after removal they should not continue as Independent Director until unless they pass the test.

12. If a person fails to pass proficiency test, can appoint as normal Director?
They are not disqualified. They can be appointed as "Normal Director "

13. Whether any one is exempted from the test?
An individual who has served, in aggregate, for a period of not less than ten years as a director and/or a Key Managerial Personnel in a listed public company or in an unlisted public company having a paid-up share capital of Rs. 10 crore or more as on the date of inclusion of his name in the data bank shall not be required to clear the proficiency test.

14. Whether over lapping period shall be count two periods or one period?
A period of 10 years as above, any over lapping period during which an individual has acted both as a director and/or key managerial personnel (KMP) at the same time in two or more companies shall be counted only once

Published by

CS Divesh Goyal
(Practicing Compnay Secretary)
Category Corporate Law   Report



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