The government will introduce an online proficiency self-assessment for independent director from 1st December.  According to a notification by the Indian Institute of Corporate Affairs (IICA), which comes under the corporate affairs ministry, would maintain a data bank of independent directors and also conduct the proficiency test.
The eligibility of test will not be applicable for certain categories of individuals, including those who have served for at least 10 years as a director or key managerial in the company. If an individual will not pass the test then the name of the individual will be removed from the data bank. Also, an individual can attempt the test again or we can say that there will be no limit on the number of attempts for an individual to clear the test.
The individual who served as director of Key managerial personnel (KMP) in a listed public company or unlisted public company having paid-up share capital of at least Rs 10 crore will not be required to pass the test. Calculation of 10 years, any period during which an individual was acting as a director or KMP in two or more companies at the same time will be counted only once. The data bank will have details about an individual’s Director Identification Number (DIN), Permanent Account Number (PAN), list of companies in which he or she is or was a director and nature of directorship, among others.
Read EquityPandit’s Nifty Outlook for the Week