Govt. allows restoration of name of independent directors in databank

Notification no. G.S.R. 439(E), Dated: 10.06.2022

Govt. has notified the Companies (Appointment and Qualification of Directors) Second Amendment, Rules, 2022.

Amendment has been made to rule 6 which prescribes compliances required by a person eligible and willing to be appointed as an independent director.

Sub rule 5 has been inserted to Rule 6 providing that any individual whose name has been removed from the databank, may apply for restoration of his name on payment of fees of one thousand rupees and the institute shall allow such restoration subject to the following conditions:

• • His name shall be shown in a separate restored category for a period of 1 year from the date of restoration within which, he shall be required to pass the online proficiency self-assessment test and thereafter his name shall be included in the databank, only, if he passes the said online proficiency self-assessment test and in such case, the fees paid by him at the time of initial registration shall continue to be valid for the period for which the same was initially paid; and
  • In case he fails to pass the online proficiency self-assessment test within 1 year from the date of restoration, his name shall be removed from the data bank and he shall be required to apply afresh for inclusion of his name in the databank.

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