{"id":17934,"date":"2020-10-15T12:00:43","date_gmt":"2020-10-15T06:30:43","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17934"},"modified":"2020-10-15T12:41:47","modified_gmt":"2020-10-15T07:11:47","slug":"independent-director-in-data-bank-get-three-months-extension-from-mca","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/independent-director-in-data-bank-get-three-months-extension-from-mca\/","title":{"rendered":"Name of Independent Director in Data Bank can be Included in next 3 Months: MCA"},"content":{"rendered":"\n<p class=\"has-drop-cap\">MCA has stretch out the timeline for the inclusion of Name of Independent director in Data bank. The Ministry of Corporate Affairs (also known as MCA) decided to offer a 3-month time extension to the independent director to include their name in Data Bank. The Ministry of Corporate Affairs has notified the Companies Fourth Amendment Rules, 2020, where Rule 6 has been altered and renders additional three months to the independent director for completing the online exam.&nbsp;<\/p>\n\n\n\n<p>The Notification shared by the Ministry of Corporate Affairs states that \u201cIn the Companies Rules, 2014 (Rule 6 and sub-rule (1), clause (a)), for the words 10 months the words 13 months shall be replaced\u201d.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/independent-director-appointment-criteria-process-roles-duties\/\">Independent Director: Appointment Criteria, Process, Roles &amp; Duties<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Extension given by Government through the Notification<\/h2>\n\n\n\n<p>Earlier this year, the Central government through the notification stated that the rule would be applied from 23\/06\/2020, and by this registration of details of independent directors in data banks who started their term on 1\/12\/2019 is been permitted till 30\/9\/2020.&nbsp; <\/p>\n\n\n\n<p>The revised rules say that every person appointed as an independent director in a company, on the date of commencement of the company fifth amendment rules, 2019, shall within a timeline of 13 months from such commencement apply to the institute to add his name in the Data bank for a period as specified in sub-rule (2), till he continues to serve the tenure as an independent director in any company <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who is an Independent Director?&nbsp;<\/h3>\n\n\n\n<p>As per <strong><em>Companies Act 2013<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>, an independent director (aka non-executive director) is an individual who doesn\u2019t have any connection with the organization that may affect the independence of his decisions. In order to be an independent director of a registered organization, an individual must have sufficed past experience in the company other than auditors\/lawyers\/consultants based firm. In addition to this basic requirement, the individual must not hold two percent or more of the shares of the organization. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"580\" height=\"344\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-52.png\" alt=\"Independent Director\" class=\"wp-image-17936\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-52.png 580w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-52-300x178.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Tasks Performed by the Independent Director<\/h2>\n\n\n\n<ul><li>Taking part in all meetings of BODs.<\/li><li>Looking into matters (internal or external) that affects the\ncompany in one way or another.&nbsp;<\/li><li>Making sure that adequate deliberation takes place before\napproving any transaction and assures that the same is free from any conflict\nof interest.&nbsp;<\/li><li>Keeping eye on the unethical behavior or violation of the\ncompany\u2019s code of conduct and report the same to the concerned person, if\nnecessary.&nbsp;<\/li><li>Keeping the integrity of confidential information including\nadvertising, commercial secrets, sale promotion, and technologies. Disclosure\nof such information cannot be done without the board\u2019s approval.&nbsp;<\/li><li>Seek appropriate clarification on any matters related to the\ncompany. Hire professionals from outside to avail expertise on a certain matter\nof the company.&nbsp;<\/li><li>Ensure good governance within the organization.&nbsp;<\/li><li>Ascertaining about the company\u2019s resources and ensures its\nsmooth functioning, regardless of the constraints.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>MCA\u2019s decision to extend the timeline for the inclusion of name of independent directors in Data bank is a big relief from the compliance viewpoint. The said amendment will help these individual to work with more authenticity. If you need any sort of assistance regarding the same, head over to <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz\u2019s<\/strong><\/a> professional and let them help you out.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/new-in-indian-institutes-of-information-technology-laws-amendment-bill-2020\/\">What\u2019s new in Indian Institutes of Information Technology Laws (Amendment) Bill, 2020<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/MINISTRY-OF-CORPORATE-AFFAIRS.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">MINISTRY-OF-CORPORATE-AFFAIRS<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MCA has stretch out the timeline for the inclusion of Name of Independent director in Data bank. The Ministry of Corporate Affairs (also known as MCA) decided to offer a 3-month time extension to the independent director to include their name in Data Bank. The Ministry of Corporate Affairs has notified the Companies Fourth Amendment [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":17955,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[1107],"acf":{"service_id":"220"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":6059,"readingTime":2,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17934"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=17934"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17934\/revisions"}],"predecessor-version":[{"id":17967,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17934\/revisions\/17967"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17955"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}