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MCA Notification No. G.S.R. 774(E) dated 18th December, 2020_ Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2020.

MCA vide Notification No. G.S.R.774 dated 18/12/2020 has issued Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2020 thereby further amending Companies (Appointment and Qualification of Directors) Rules,2014 wherein:

  1. In rule 6(4), the period to pass online proficiency self-assessment test by an individual whose name is included in the data bank is extended to 2 years from 1 year.
  2. Further as a provision to this sub-rule, it is provided that the individual will not be required to pass the said test when if 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:
  • As a director or KMP in one or more of the following, namely:
  1. Listed public company; or
  2. Unlisted public company having a paid-up share capital of Rs.10 cr or more; or
  3. Body corporate listed on any recognized stock exchange or in a country which is a member State of the Financial Action Task Force on Money Laundering and the regulator of the securities market in such member State is a member of the International Organization of Securities Commissions; or
  4. Bodies corporate incorporated outside India having a paid-up share capital of US$ 2 million or more; or
  5. Statutory corporations set up under an Act of Parliament or any State Legislature carrying on commercial activities; or
  • in the pay scale of Director or above in the Ministry of Corporate Affairs or the Ministry of Finance or Ministry of Commerce and Industry or the Ministry of Heavy Industries and Public Enterprises and having experience in handling the matters relating to corporate laws or securities laws or economic laws; or
  • in the pay scale of Chief General Manager or above in the Securities and Exchange Board or the Reserve Bank of India or the Insurance Regulatory and Exchange Board or the Reserve Bank of India or the Insurance Regulatory and Development Authority of India or the Pension Fund Regulatory and Development Authority and having experience in handling the matters relating to corporate laws or securities laws or economic laws.

Further, it is provided that for the purpose of calculation of the period of 3 years, any period during which an individual was acting as a director or as a KMP in two or more companies or bodies corporate or statutory corporations at the same time shall be counted only once.

The said Notification can be accessed through the following link: MCA_Notif_GSR.774(E)_18.12.2020_Co.(Appointment and Qualification of Directors) 5th Amendment Rules,2020

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