Experienced CA, CS, CMA & Advocates exempted from Proficiency Test for Appointment as Independent Directors

MCA notifies the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021 to exempt CA, CS, CMA & Advocates with 10 Year’s Experience from requirement of Proficiency Test to qualify for Appointment as Independent Directors.

Further, MCA has made the norms more flexible for Central/ State Govt. Officials with expertise for appointment as Independent Directors on the Board of Companies.

MCA Notification dt. 19/08/2021: MCA notifies the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021

G.S.R. 579(E).- In exercise of the powers conferred by section 149 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Appointment and Qualification of Directors) Rules, 2014, in rule 6, in sub-rule (4),-

(i) in the first proviso, for clause (B), the following clause shall be substituted, namely:-

(B) in the pay scale of Director or equivalent or above in any Ministry or Department, of the Central Government or any State Government, and having experience in handling,-

(i) the matters relating to commerce, corporate affairs, finance, industry or public enterprises; or

(ii) the affairs related to Government companies or statutory corporations set up under an Act of Parliament or any State Act and carrying on commercial activities.

(ii) after the second proviso, the following proviso shall be inserted, namely:-

Provided also that the following individuals, who are or have been, for at least ten years :-

(A) an advocate of a court; or

(B) in practice as a chartered accountant; or

(C) in practice as a cost accountant; or

(D) in practice as a company secretary,

shall not be required to pass the online proficiency self-assessment test.

Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification number G.S.R. 259(E), dated 31/03/2014 and were last amended vide notification number G.S.R. 774 (E), dated 18/12/2020.

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