This is a quick update to let you know that the Ministry of Corporate Affairs (“MCA) has framed the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 to aid in the process of creating and maintaining the databank of eligible and willing Independent Directors.
In line with this, Rule 6 of the Companies (Appointment and Qualifications of Directors) Rules, 2014 which deals with process of creating and maintaining the databank of eligible and willing Independent Directors is being substituted by way of the Companies (Appointment and Qualifications of Directors) Fifth Amendment Rules, 2019.
The MCA has further notified the Indian Institute of Corporate Affairs at Manesar (Haryana) as the 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, for the use of the company making the appointment of such directors”.
The above mentioned notifications will gain effect from 1st December, 2019. A detailed analysis of the same will be shared with you shortly.
Source: Ministry of Corporate Affairs
