Relaxation From Passing Of Online Proficiency Test



Quick Summary
New rules effective from 20th August 2021, the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021, outline exemptions for the online proficiency self-assessment test. Individuals with at least ten years of experience as an advocate, chartered accountant, cost accountant, or company secretary are exempt. Additionally, those who have served for at least three years as a director or key managerial personnel in specific types of companies, or held senior positions in government or regulatory bodies with relevant experience, are also not required to pass the test.

SHORT SUMMARY

As per recent Notification on 19th August 2021, MCA has issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021. These Rules came into effect from 20th August 2021.

Online Director Test Exemptions: Who Doesn t Need to Pass

Extract of Amendment

Amendment 1: in the first proviso, for clause (B), the following clause shall be substituted, namely: 

'(B) in the pay scale of Director or equivalent or above in any Ministry or Department, of the Central Government or any State Government, and having experience in handling, —

(i) the matters relating to commerce, corporate affairs, finance, industry or public enterprises; or

(ii) the affairs related to Government companies or statutory corporations set up under an Act of

Parliament or any State Act and carrying on commercial activities.'.

Amendment 2: (ii) after the second proviso, the following proviso shall be inserted, namely: 

'Provided also that the following individuals, who are or have been, for at least ten years:

(A) an advocate of a court; or
(B) in practice as a chartered accountant; or
(C) in practice as a cost accountant; or
(D) in practice as a company secretary,

shall not be required to pass the online proficiency self-assessment test.'.

List of People not required to pass the online proficiency test

An individual shall not be required to pass the online proficiency self-assessment test when he has served for a total period of not less than three years as on the date of inclusion of his name in the data bank as:

 

1. As a director or key managerial personnel, as on the date of inclusion of his name in the databank, in one or more of the following, namely:-

  • listed public company; or
  • unlisted public company having a paid-up share capital of rupees ten crore or more; or
  • body corporate listed on any recognized stock exchange or in a country which is a member State of the Financial Action Task Force on Money Laundering and the regulator of the securities market in such member State is a member of the International Organization of Securities Commissions; or
  • bodies corporate incorporated outside India having a paid-up share capital of US$ 2 million or more; or
  • statutory corporations set up under an Act of Parliament or any State Legislature carrying on commercial activities; or

2. in the pay scale of Director or equivalent or above (i.e. not less than 3 years) in any Ministry or Department, of the Central Government or any State Government, and having experience in handling, —

  • the matters relating to commerce, corporate affairs, finance, industry or public enterprises; or
  • the affairs related to Government companies or statutory corporations set up under an Act of Parliament or any State Act and carrying on commercial activities.'.

3. in the pay scale of Chief General Manager or above in the Securities and Exchange Board or the Reserve Bank of India or the Insurance Regulatory and Exchange Board or the Reserve Bank of India or the Insurance Regulatory and Development Authority of India or the Pension Fund Regulatory and Development Authority and having experience in handling the matters relating to corporate laws or securities laws or economic laws.

 

4. Following individual having qualification for at least 10 years as

(A) an advocate of a court; or
(B) in practice as a chartered accountant; or
(C) in practice as a cost accountant; or
(D) in practice as a company secretary,

CONCLUSION

Above mentioned list of person on the basis of qualification and experience mentioned above are not required to pass Online Proficiency Test to get his/ her name register with Independent Director Data bank.


877 Views 4 Likes Comment   Share Corporate Law   Report


About the Author

Practicing Compnay Secretary

CAREER PROFILE He is a Fellow Member of the Institute of Companies Secretaries of India having intense expertise in Corporate Law for the last 8 years. He is a young and progressive Practicing Company Secretary with zeal to dig deep into the nuances of Corporate Laws. Being a researcher at heart, he has done ... Read more

Comments :

Related Articles


Loading


Popular Articles





CCI Pro

CCI Articles

submit article


Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details