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. | Rule | Pre-Amendment | Post-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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