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Experienced advocates, accountants can become independent directors without proficiency test: MCA

by Gias
August 20, 2021
2 min read
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Skilled advocates, chartered accountants, price accountants and firm secretaries are exempt from the requirement of a proficiency take a look at to be able to qualify for appointment as impartial administrators on the board of corporations, the federal government mentioned on Thursday.

As per the Firms (appointment and qualification of administrators) Modification Guidelines, 2021 notified by the ministry of company affairs, these professionals needn’t take the take a look at if they’ve been practising for ten years within the subject.

The ministry additionally made the norms extra versatile for officers of central and state governments with experience to be appointed as impartial administrators.

Earlier, the norms had specified that administrators or above within the central ministries of finance, company affairs, commerce, heavy industries and public enterprises having expertise in dealing with issues associated to company, securities or financial legal guidelines had been exempt from the proficiency take a look at.

The brand new norms launched on Thursday exempts all administrators, equal or above in any ministry or division of central or state governments from the take a look at. That is topic to the rider that they should have expertise in dealing with issues associated to commerce, company affairs, finance, business or public enterprises or the affairs associated to authorities corporations or statutory firms arrange below any legislation and carrying on industrial actions.

For appointment as impartial administrators, the candidates additionally need to get their names included in a database of keen and eligible individuals, maintained by the Indian Institute of Company Affairs (IICA), a authorities establishment.

The change in norms goals to make extra skilled individuals accessible to be appointed as impartial administrators on the board of corporations.

The proficiency take a look at seeks to make sure that solely individuals who can perceive the implications of board selections are employed as impartial administrators, whom regulators, public monetary establishments, minority shareholders and potential buyers financial institution on for making certain good governance.

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