CA practice for Corporate Laws & Corporate Governance Committee Rules 2014

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CA in practice for Corporate Laws & Corporate Governance Committee Rules 2014

CA in practice for Corporate Laws & Corporate Governance

It is to be notified that the Ministry of Corporate Affairs through its notification on 19/09/2021 has been revised the provisions of rule 6 of the Companies (Appointment and qualification of directors) rule 2014 to exempt the need for passing the self-proficiency test for a specific person.

As per that the Chartered Accountants practising for at least 10 years were not urged to pass the online proficiency self-assessment test to become the independent director. 

The mentioned are the revisions that have built the rules. Analysis of which is provided below: 

S.no.RulePre-AmendmentPost-Amendment
1
First Proviso to
Rule 6(4) of
Companies
(Appointment
and
Qualification of
Directors)
Rules, 2014:

Compliances
required by a
person eligible
and willing to
be appointed as an
independent
director
Provided that 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,-

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 corporate
laws or securities laws or
economic laws; or
Provided that 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,-

(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.
2.Rule 6(4) of
Companies
(Appointment
and
Qualification of
Directors)
Rules, 2014:

Compliances
required by a
person eligible
and willing to
be appointed
as an
independent
director
N.A.Insertion of Third Proviso in
Rule 6(4):

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.

The notification is available on the link:

https://egazette.nic.in/WriteReadData/2021/229158.pdf

Members should seek a note of the above and plan as per that.

Read more official announcement by ICAI: https://resource.cdn.icai.org/66192clcgc53434.pdf

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