Below FAQs seek to answer some common questions asked with reference to the following rules:
A. Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019
B. Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019
Response: Important Dates:
Response: Every Individual –
Response: In accordance with Rule 3(2) of the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 the databank will include the information, such as, DIN/PAN, Full Name, Father’s Name, DOB, Gender, Nationality, Occupation, Address, Contact Details, Educational and Professional Qualifications, Experience or Expertise, details of pending criminal proceedings, and Directorship/KMP/LLP positions.
Response: In case of already compliant/registered Independent Directors, their DIR-3-KYC detail (such as, DIN/PAN/Passport number, Name, DOB, Father’s name, Mobile Number and Email Address) and their directorship/KMP positions details will be automatically filled through MCA21 shared with the databank. All other information required for empanelment must be provided by the individual only. All information can be edited any time after registration except for the prefilled information from MCA21.
Response: In that case, you are required to file DIR–6 or DIR–3 KYC with MCA in order to change the email-id and receive the required OTP.
Response: As per Section 149(6) of Companies Act 2013
(6) An independent director in relation to a company, means a director other than a managing director or a whole-time director or a nominee director,—
(a) who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience;
Any individual with relevant expertise and experience, aspiring to be an Independent Director may register with databank.
Therefore, an individual not being a graduate may also register with databank.
Response: There is no minimum or maximum age limit for registration as an Independent Director with databank. However, the provisions of CA2013 regarding maximum age for appointment as Independent Director may be referred.
Response: Yes. A registration certificate with unique registration ID would generate online, post successful registration and payment of the requisite fee based on adoption of any of the available subscription plan as approved by MCA. The registration certificate will also be stored in your dashboard for reference at any time in future. The validity date of said registration certificate would be mentioned therein.
Response: Yes. The Invoice would generate online, post successful registration and payment of the requisite fees. The same will also be stored in your dashboard for reference at any time in future. It will carry the GST number of the user individual/company if same be shared at the time of registration. No further updating requests would possibly be entertained.
Response: Yes. The registration would be required to be renewed based on subscription plan selected. The databank would maintain the inclusion of the name for the said duration of subscription only. In order to keep the name included in the databank in compliance to the rules, the subscription is required to be renewed if not opted for lifetime.
Response: In that case, you are required to file form DIR-6 or DIR-3 KYC with MCA in order to change the company email to your personal email-id.
Response: The information available in the databank shall be provided only to companies required to appoint independent directors after paying a reasonable fee to the institute.
Response: Indian Institute of Corporate Affairs (IICA) as notified under sub-section (1) of section 150 of the Companies Act, 2013 shall create and maintain a databank of persons willing and eligible to be appointed as Independent Directors and also provide for online courses and self-assessment test.
Response: As per Rule 3(4) of the said provisions, a person whose name is included in the databank, can control what information will be displayed or hidden in his/her profile.
Response: As per Rule 3(5) of the said provisions, any individual whose name appears in the databank must make changes in his particulars within thirty days of such change in the databank as well.
Response: As per Rule 6(4) of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, for the purpose of calculation of the period of three years referred to in the first provision, any period during which an individual was acting as a director or as a key managerial personnel in two or more companies at the same time shall be counted only once.
Response: As per Rule 6(4) of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, every individual whose name is included in the databank under sub rule (1) shall pass an online proficiency self-assessment test conducted by the institute within a period of two years from the date of inclusion of his name in the databank, failing which, his name shall stand removed from the databank of the institute. This is subject to exemption allowed under the rule for individuals meeting the required experience criteria.
Response: As per Rule 6(4) of Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 the experience of three years or more shall be counted as on the date of inclusion of the name in the databank (the date of registration, in other words when the fee towards subscription is paid). If the experience is attained at a later date, the exemption will not be applicable, and the director will be required to pass the online proficiency self-assessment test.
Response: Prefilled data coming from MCA21, cannot be modified. In order to change any particulars of Directors, you are required to file Form DIR-6 or DIR-3 KYC with MCA.
Response: In that case, you are required to file Form DIR-6 or DIR-3 KYC with MCA in order to change the email-id particulars.
Response: Fill up the DIR 3-KYC & DIR-6 for correction of dates.
Response: Yes, there is a fee for inclusion of name with the databank. As per the Rule 3(7), the institute, with the prior approval of the Central Government has fixed fees for individual registration as below:
Response: The empanelment/registration fee can be paid online using the credit card, netbanking, UPI and Digital wallet (only mobikwik). As per Government of India’s instruction, the option for paying through the debit card is currently not available.
Response: The key objective of the databank is to enhance the capacity of Independent Directors. For the purpose, eLearning Modules, Monthly Newsletter, Capacity building Schemes have been provided within the databank and can easily be accessed. In addition, new initiative of conducting Webinars/Masterclasses is also notified on homepage. For any further assistance the help desk can be reached out at 1800-102-3145
Response: It is not mandatory to take the eLearning courses; however, it is advisable to take the courses for the purpose of capacity building as well as for ease of passing the online proficiency self-assessment test.
Response: No, passing of post assessment quizzes at the end of eLearning modules is not mandatory. The post assessment quizzes at the end of each eLearning module are only to check learner’s attention in learning journey retention.
Response: The study material has been provided in form of eLearning modules only. The online proficiency self-assessment test is based on the 42 eLearning modules available within the integrated LMS in the databank, they can be accessed after login to your dashboard.
Response: Yes. The certificate is generated online after submission of the online test. It can be printed by the user for their reference. It will also be stored in your dashboard for reference at any time in future. However no printed certificate (hard copy) would be provided.
Response: Presently MCA has not notified any duration for the validity of the certificate. However, it shall be subject to any change in the said rules at the discretion of MCA.
Response: Yes. The Mock Test is available and can be taken up for any number of times. It can be accessed post login into your dashboard.
Response: Yes. A detailed report would generate post completion of the test mentioning areas of strength and further improvement. However, the correct answers to the MCQs appear in the Online test would not be provided.
Response: The performance in the areas of improvement can be enhanced by referring to the eLearning modules provided in the databank.
Response: As per Rule 6(4) of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, “ the individual who has served for a period of not less than three years as on date of inclusion of his name in the databank as director or key managerial personnel in a listed public company or in an unlisted public company having a paid up share capital of rupees ten crore or more or in a body corporate listed on a recognized stock exchange shall not be required to pass the online proficiency self-assessment test.
Response: Individuals not exempted are required to pass the online proficiency self-assessment test within 2 years of their inclusion of their name in the databank.
Response: As per the explanation provided for Rule 6 (4) of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 “an individual who has obtained a score of not less than fifty percent in aggregate in the online proficiency self-assessment test shall be deemed to have passed such test”.
Response: Yes, all empaneled individuals will be able to access and take the online proficiency self-assessment test. However, it will be mandatory for non-exempted individuals to pass the test within two years of inclusion of their name in the databank.
Response: No, once an individual passes the test, he cannot take the test again to improve the score.
Response: Please check the ‘Self-Assessment’ section of ‘Member Services’ section of the databank for reference to the test scheme. Click here to know about the scheme of online proficiency self-assessment test.
Response: As per the explanation provided for Rule 6 (4) of the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, there shall be no limit on the number of attempts an individual may take for passing the online proficiency self-assessment test.
Response: If an individual fails to pass the test or misses the test slot due to any reasons, the next slot can only be booked after 1 day from the previous booked slot date and time. However for any urgent requirements, please reach out to email@example.com.