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The Ministry of Corporate Affairs has announced the Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021 to further amend the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019. Under the new Rules, Rule 3(7)(a) and Rule 3(8) stand amended. Read the official announcement by ICAI decoding the amendments, below:

Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India
1st July, 2021

ANNOUNCEMENT

Sub: Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021

This is to inform you that The Ministry of Corporate Affairs (MCA) on June 21, 2021 has issued the Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021 to further amend the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019.

The Rules shall be applicable to existing Independent directors and individual who are willing to be appointed as independent director also the Companies which are required to appoint Independent directors under the Companies Act 2013.

It mentions that in case an individual delays his/her application to IICA for inclusion of name or for renewal, such inclusion or renewal may be allowed by IICA “after charging a further fees of one thousand rupees.

Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021

An analysis of the amendments in the aforesaid rules is given below:

S No. Rule Pre-Amendment Post-Amendment
1 Rule 3(7)(a) of Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 (7) The institute shall, with the prior approval of the Central Government, fix a reasonable fee to be charged from:-

(a) individuals for inclusion of their names in the data bank of independent directors; and
(7) The institute shall, with the prior approval of the Central Government, fix a reasonable fee to be charged from:-

(a) individuals for inclusion or renewal of their names in the data bank of independent directors; and
2 Rule 3(8) of Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 N.A.

NEW INSERTION

In case of delay on the part of an individual in applying to the institute under sub-rule (7) for inclusion of his name in the data bank or in case of delay in filing an application for renewal thereof, the institute shall allow such inclusion or renewal, as the case may be, under rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 after charging a further fees of one thousand rupees on account of such delay.


Notification is available at the link-
Click Here

Sincerely Yours,

Chairman and Vice Chairman
Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India

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