MCA notifies Schedule of Annual Report on Capacity Building of Independent Director

The Ministry of Corporate Affairs (MCA) on Thursday has notified the Schedule of Annual Report on Capacity Building of Independent Directors.

The government has notified the Companies (Creation and Maintenance of databank of Independent Directors) Second Amendment Rules, 2021 which seeks to insert Rule 6 in the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019.

In the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019, after rule 5, the following rule6  and the Schedule shall be inserted in respect of Annual report on the capacity building of independent directors which reads “The institute shall within sixty days from the end of every financial year send an annual report to every individual whose name is included in the data bank and also to every company in which such individual is appointed as an independent director in format provided in the Schedule to these Rules.”

The schedule consists of various entries namely Director’s Name, DIN Number, IDDB Registration Number, Subscription (1 yr or 5 yr or Lifetime), Membership Validity, Online Self-Assessment Proficiency Test Status (N.A if exempted), Participation during the Financial Year, and Total Participation.

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