The Ministry of Corporate Affairs vide a notification dated 22nd October 2019 has published a new Rule named Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019. This Rule entrusts the Indian Institute of Corporate Affairs (IICA) with the duty of creation and maintenance of online data bank of independent Directors and makes it mandatory for Independent directors to take up an online proficiency self-assessment test to be conducted by the Indian Institute of Corporate Affairs. These Rules shall come into force from 1st December 2019. Some of the key provisions of this Rule are as follows-
- IICA shall create and maintain an online data bank of persons willing and eligible to be appointed as independent directors. The databank shall be an online databank which shall be placed on the IICA website.
- The databank shall contain data of the persons willing and eligible to be appointed as independent directors, such as his DIN, PAN, name and surname, date of birth, fathers name, gender, occupation, nationality, full address, phone number, email id, list of companies in which he is director, list of limited Liability partnership where he is a partner, criminal proceedings (if any) etc. However, a person may restrict his personal information to be disclosed in the databank.
- An individual, whose name is there in the data bank may make changes in his particulars within 30 days of actual change through web-based framework.
- The data is made available only to companies for the purpose of appointing a director, after paying the fixed fee.
- IICA shall conduct an online proficiency self-assessment test covering companies law, securities law, basic accountancy, and such other areas relevant to the functioning of an individual acting as an independent director.
- IICA shall also prepare a basic study material, online lessons, including audio- visuals on the specified subjects, approved by a panel nominated by the Central Government. There shall be a panel nominated by the Central Government for approving the curses and study material prepared by IICA.