Companies Act 2013, Corporate Law, Independent Director

24-06-2020 companies (Appointment and Qualifcation of Directors) 3rd Amendment Rules 2020 clarification

Actually provision For appointed as an independent director.

  1. Compliances required by a person eligible and willing to be appointed as an independent director.

(1) Every individual –

(a) who has been appointed as an independent director in a company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of 5[seven months] from such commencement; or

(b) Who intends to get appointed as an independent director in a company after such commencement, shall before such appointment,

Apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company:

Provided that any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.

*Commencement date was: 01 December 2019.

 

Provision For appointed as an independent director After Amendment date 24/06/2020.

  1. Compliances required by a person eligible and willing to be appointed as an independent director.

(1) Every individual –

(a) who has been appointed as an independent director in a company, on the date of commencement of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, shall within a period of 5[Ten months] from such commencement; or

(b) Who intends to get appointed as an independent director in a company after such commencement, shall before such appointment,

Apply online to the institute for inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time take steps as specified in sub-rule (2), till he continues to hold the office of an independent director in any company:

Provided that any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.

*Commencement date was: 01 December 2019.

The conclusion Time period of 7 months ended on June 2020 so time period was extended to 10 months ends on September 2020 for apply online for the inclusion of name in data bank who already appointed as an independent director as on 01 Dec 2019 as an independent director.