Independent Director's data bank

The Central Government through its notification G.S.R.804(E). dated 22nd October 2019, amended the Companies (Appointment and Qualification of Directors) Rules, 2014, to be effective from 01st December, 2019

According to this notification, all the existing independent director or who intends to get appointed as Independent Director, within 10 months from the date of this notification are required to make an application to institute ("Indian Institute of Corporate at  Affairs at Manesar") for including his/her name in the data bank.

Currently individual can submit application for 1 year or 5 years or for his/her life time.

Further every individual whose name is included in the data bank, are required to pass online proficiency self-assessment test conducted by the institute within a period of 1 year from the date of inclusion of his/her name in the data bank. If the individual fails to do so, then his/her name will be removed from data bank.

Exemption: Individual who has served for a period of not less than 10 years as on the date of inclusion of his/her name in the databank as director or key managerial personnel (KMP) in a listed company or in an unlisted public company having a paid-up share capital of Rs. 10 crore or more shall not be required to pass the online proficiency self-assessment test.

Renewal: Every individual whose name is already registered in data bank, shall make an application to institute for renewal within 30 days from the date of expiry of his/her registration period, else his name will be removed from data bank.

If any individual is acting as director or key managerial personnel in two or more Companies at a same time, then that shall be counted once for the purpose of calculating 10 years.

Empanelment process of Independent Director and other Individuals:

1. Login to mca.gov.in and go to independent director registration home page.
2. Enter your valid Pan/DIN/Passport No., whichever applicable.
3. Once the details are verified, you will be redirected to director’s data bank.
4.  To login data bank, use the credentials received on registered email id/mobile no.
5. Once login, enter your personal, educational, professional, positional and other details.
6. Review your profile and submit.
7. Choose your subscription plan (1 year or 5 years or Life time)
8. Pay the registration fees as per subscription plan.

Fees for individual registration are as below:

• For 1-year subscription- Rs. 5,000 + 18% GST
• For 5-years subscription- Rs. 15,000 + 18% GST
• For life time subscription- Rs. 25,000 + 18% GST

Some of the topic covered under online proficiency self-assessment test are:

Incorporation of Company, Capital Structure, Accounts, Debentures, Deposits, RPT, Audit, M&A, Duties and Liabilities of directors, Oppression and Mismanagement, SEBI(LODR) 2019, Board Committees, Secretarial Audit, Board and General Meetings, Professional Ethics, Due Diligence, Board Effectiveness, CSR, Allotments etc,

Disclaimer: Please note that the above article is based on interpretation of related laws, which may differ from person to person and is not a legal advice.