CA etc. with 10 years practice exempted from passing proficiency test for Independent Director

CA CMA CS Advocates with ten years of practice exempted from passing proficiency test for inclusion of name in Independent Directors database – MCA Notification 

Ministry of Corporate Affairs has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021 to amend Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 to exempt CA and like Professionals from passing proficiency test for inclusion their name in Independent Directors database.

The Rule 6(4), every individual whose name is included in the data bank is required to pass an online proficiency self-assessment test within a period of Two years from the date of inclusion of his name in the data bank, failing which, his name shall stand removed from the databank of the institute.

Proviso to the Rule 6(4) contains exclusion from the requirement of passing the said proficiency test. As per the existing exclusions, an individual shall not be required to pass the online proficiency self-assessment test when he has served for a total period of not less than three years as on the date of inclusion of his name in the data bank in the given pay scale in specified Govt. Departments etc.

This exclusion has been revised and shall apply to an individual when he has served for a total period of not less than three years as on the date of inclusion of his name in the data bank  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.

Also it has been provided that the following individuals, who are or have been, for at least ten years

(i) an advocate of a court; or

(ii) in practice as a chartered accountant; or

(iii) in practice as a cost accountant; or

(iv) in practice as a company secretary,

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

Download Notification Click Here >>

• ITAT allows exemption of Rs. 25 lakhs u/s 10(10A) to non-government employees
• PCIT has revisionary jurisdiction u/s 263 over the cases passed by the NFAC or the JAO
• Appellate court interfering with MACT finding must undertake reappreciation of evidence
• When delay is not huge & involves huge monetary liability, lenient approach to be taken
• EoGM of company can not ratify diversion of fund raised by preferential issue – SC