Independent Directors to get registration on Databank
Background
Ministry of Corporate Affairs (“MCA”) vide its notification dated 29th April, 2020 has issued the Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2020 which extended the period for registration of Independent Directors in the Databank from “Five” (5) months to “seven” (7) months effective from 1st December, 2019 by applying online to the Institute of Corporate Affairs (“IICA”)
Key Highlights of the Amendment
- Change in the rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 via Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2020
- Earlier MCA has extended this registration date from 29th February, 2020 to 30th April, 2020 via Companies (Appointment and Qualification of Directors) Rules, 2020
- Now, through Companies (Appointment and Qualification of Directors) Second Amendment Rules,2020 MCA has extended the deadline from 30th April, 2020 to 30th June, 2020
Impact on Independent Directors (“ID’s”)
- Extended timeline provided ID’s further time to get registered on databank
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