New Delhi, Oct 23 (KNN) Now all independent directors will soon have to take an “online proficiency self-assessment test” before they are appointed to company boards, according to an amendment to the Companies Act notified by the MCA on Tuesday. This rule will come into effect from December.

IICA Manesar will conduct this exam. It will also create and maintain a data bank with names, addresses and qualifications of people who are eligible to be appointed as independent directors for companies.

The Ministry of Corporate Affairs has notified Indian Institute of Corporate Affairs (IICA) at Manesar in Haryana as an institute to create and maintain a data bank containing names, addresses and qualifications of persons who are eligible and willing to act as independent directors.

This will be for the use of company making the appointments of such Directors.

This notification will come into effect from December 1, 2019.

Boards of companies will have to disclose the results of these tests in their annual reports. The government inserted a new clause in the Companies (Accounts) Rules 2014, sub-rule 5; it will require companies to file such a statement.

The MCA notification highlights:

   --- Manesar-based Indian Institute of Corporate Affairs will conduct the exam.

   --- It will create and maintain a data bank with names, addresses, and qualifications of people who are eligible to be appointed as independent directors for companies.

   --- Boards of companies will have to disclose the results of these tests in their annual reports.

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