Amendment in Companies (Appointment and Qualification of Directors) Rules, 2014- A Chartered Accountant in practice for atleast 10 years is not required to clear online proficiency test to become Independent Director

CA Study Social

CA Study Social

NON-ACADEMIC ICAI UPDATE (NOT RELEVANT FOR EXAMS BUT FOR GENERAL AWARENESS)

CA Study

Hello Everyone,

Please find text of the Amendment in Companies (Appointment and Qualification of Directors) Rules, 2014- A Chartered Accountant in practice for atleast 10 years is not required to clear online proficiency test to become Independent Director notification below –

Amendment in Companies (Appointment and Qualification of Directors) Rules, 2014- A Chartered Accountant in practice for atleast 10 years is not required to clear online proficiency test to become Independent Director

Corporate Laws & Corporate Governance Committee The Institute of Chartered Accountants of India

25th   August, 2021

ANNOUNCEMENT

Sub: Amendment in Companies (Appointment and Qualification of Directors) Rules, 2014- A Chartered Accountant in practice for atleast 10 years is not required to clear online proficiency test to become Independent Director

This is to inform you that the Ministry of Corporate Affairs vide its notification dated 19th August 2021 has amended the provisions of Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014 to relax the requirements for passing self-proficiency test in respect of certain individuals/professionals.

Accordingly, now the Chartered Accountants who are or have been, in practice for at least ten years are not required to pass the online proficiency self-assessment test to become Independent Director.

The following amendments have been made in the aforesaid Rules. Analysis of which is given below:

SNo.RulePre-AmendmentPost-Amendment
1First Proviso to Rule 6(4) of Companies (Appointment and Qualification of Directors) Rules, 2014:
Compliances required by a person eligible and   willing tobe appointed
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
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 theCentral    Government    or  any
as anindependent directorMinistry 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; orState Government, and having experience in handling,—
The matters relating to commerce, corporate affairs, finance, industry or public enterprises; orThe affairs related to Government companies or statutory corporations set up under an Act of Parliament or any State Act and carrying on commercialactivities.
2Rule 6(4) of Companies (Appointment and Qualification of Directors) Rules, 2014:
Compliances required by a person eligible and willing to be appointed as anindependent 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 :
an advocate of a court; orin practice as a chartered accountant; orin practice as a cost accountant; orin practice as a company secretary, shall not be required to pass the online proficiency self-assessmenttest.

Notification is available at the link- https://egazette.nic.in/WriteReadData/2021/229158.pdf

Members may take note of the above and plan accordingly.

Sincerely Yours,

ca study

Chairman and Vice Chairman

Corporate Laws & Corporate Governance Committee The Institute of Chartered Accountants of India

DON'T MISS OUT!
Subscribe To Newsletter

Receive ICAI Latest Updates, Free Notes & Much More. 

Invalid email address
Give it a try. You can unsubscribe at any time.

Official Link of Amendment in Companies (Appointment and Qualification of Directors) Rules, 2014- A Chartered Accountant in practice for atleast 10 years is not required to clear online proficiency test to become Independent Director notification can be accessed from below –

https://resource.cdn.icai.org/66192clcgc53434.pdf

That’s all for now. Stay Connected for more such authentic updates.

Jai Hind, Vande Mataram
Team CA Study

Amendment in Companies (Appointment and Qualification of Directors) Rules, 2014- A Chartered Accountant in practice for atleast 10 years is not required to clear online proficiency test to become Independent Director 1

Share This Article :