As per section 150(1), an independent director can be selected from the data bank containing the names, addresses and qualifications of persons. Such persons should also be eligible and willing to be appointed as Independent Director.
As per Rule 6 of the Companies(Appointment and Qualifications of Directors) Rules, 2014, every individual whose name is included in the data bank, is required to pass an online self proficiency test conducted by the Indian Institute of Corporate Affairs, within a period of two years from the date of inclusion of his name in such data bank. In case of failure, his name shall be removed from the data bank. However, the individual who has served for a period of not less than three years as on the date of inclusion of his name in the databank-
A. As a director or key managerial personnel in the following-
- 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;
B. In the pay scale of Director or above in the Ministry of Corporate Affairs or the Ministry of Finance or Ministry of Commerce and Industry or the Ministry of Heavy Industries and Public Enterprises 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.
C. 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 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.
D. The following individuals, who are or have been, for at least ten years:
- an advocate of a court; or
- in practice as a chartered accountant; or
- in practice as a cost accountant; or
- in practice as a company secretary
Procedure for Taking Self Proficiency Test
The following steps must be followed for taking the Online Self Proficiency Test:
- Login into the Databank
- Go to the dashboard
- Select the slot as per your convenience for attempting the test
- Attempt the test as per the slot booked
- Get test results and reports published
An individual who has obtained a score of not less than 50% in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test. There shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test. There must be a gap of 1 day between 2 slots booked by an individual for attempting the online self-assessment test. If an individual fails to pass the test on a particular slot or misses the slot due to any reasons, the next slot can only be booked after 1 day from the previous booked slot date and time.
The total marks of the test is 100. The test shall contain 50 MCQs and the duration of the test is 75 minutes.
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