MCA had launched independent directors data bank; to be maintained by IICA

MCA had launched independent directors data bank; to be maintained by IICA

The Ministry of Corporate Affairs had launched the independent director’s databank. It is set up under the Companies Act, 2013; by means of which the independent directors are required towards registering themselves with the databank within 3 months from 1st December, according to rules notified through the corporate affairs ministry.

The databank portal had been developed and shall be maintained by the Indian Institute for Corporate Affairs (IICA). An official statement had specified that the current independent directors are also required to pass a basic online proficiency self-assessment test which shall be made available from March 2020. For providing sufficient practice toward individuals, a number of online mock tests were made available in the system. The real test could be taken online through a simple scheduling procedure. The release said that the real test shall be remotely proctored.

It furnishes for a wide array of e-learning courses on numerous topics which includes the Companies Act, securities laws, basic accountancy, board practices, board ethics as well as board effectiveness. Many value-added services are also expected towards being rolled out by means of the portal for capacity building of independent directors.

The databank could be accessed at www.mca.gov.in or www.independentdirectorsdatabank.in. It is intended at furnishing access as well as navigate platform for the registration of present independent directors along with individuals who are aspiring to become independent directors.

The websites also have an Integrated Learning Management System. The system is intended in the direction of acting as e-learning capsules in order to permit individual users to effortlessly acquire knowledge from varied resources, develop individual skills as well as assess their understanding on corporation operations, rules and compliances.

The statement by the Ministry stated that the corporations also might register themselves with the databank in order to search, select and connect with people who possess the accurate skills and attitude towards being considered for appointment as independent directors as the databank is estimated to become a complete repository of both existing independent directors along with individuals entitled and willing to be chosen as Independent Directors,”.

Independent directors have a considerable role in ensuring good governance actions at corporates. In current times, numerous individuals have come under the regulatory lens relating to the irregularities at corporations where they were serving as independent directors.

In accordance with the Companies Act, 2013, there are provisions that a corporation could select an independent director from a data bank of individuals who are suitable and willing to act as independent directors.

According to a notification which has been issued earlier this year, it stated that the IICA shall create and maintain a data bank comprising names, addresses as well as qualifications of individuals who are eligible and willing to act as independent directors, for the use of the corporation making the appointment of such directors.

The registration procedure has been precisely designed to be quick and simple and was divided into three simple steps: One must log in through the user account on the Website of the Ministry; Upon successfully log in the user shall be directed towards the Databank; then choose one of the Subscription Plans in order to access the e-learning as well as the e-proficiency assessment modules.
Also, a publication which is named as Independent Directors Databank-Handbook covers the key objectives, empanelment or registration procedure of individual or corporate and the knowledge resources available on the portal has also been released. 

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