CA, CS, CMA in practice for at least 10 years is exempted from Online Proficiency Self-Assessment Test for becoming Independent Director

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The Ministry of Corporate Affairs vide Notification dated August 19, 2021 has further amended the Companies (Appointment and Qualification of Directors) Rules, 2014 (“the Companies Rule”) so as to exempt certain class of persons from online proficiency self-assessment test for becoming an Independent Director.

As per the Rule 6 of the Companies Rule, every individual who has been appointed or who intends to be appointed as an independent director, has to get their name included in the data bank and shall pass an online proficiency self-assessment test conducted by the institute. However, as per proviso to Rule 6(4) of the Companies Rule, certain persons are not required to pass the online proficiency self-assessment test on fulfilling conditions mentioned therein.

Vide this notification, clause (B) in Rule 6 (4) has been substituted to mean that inter alia 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 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.

Further, 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 can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2021/08/Companies-Appointment-and-Qualification-of-Directors-Amendment-Rules-2021.pdf

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