Online proficiency self-assessment test for independent directors from Dec
PrintListen to this Article
According to the MCA notification, the Indian Institute of Corporate Affairs (IICA) in Manesar, Harayana, will conduct this exam. It will also create and maintain a data bank with names, addresses and qualifications of people who are eligible to be appointed as independent directors for companies.
Boards of companies will have to disclose the results of these tests in their annual reports. The government inserted a new clause in the Companies (Accounts) Rules 2014, sub-rule 5; it will require companies to file such a statement.
Lawyers and sector observers were, however, sceptical how helpful these tests will be.
“When there is a dearth of independent directors, tests like these will certainly not aid the cause and create further challenge for a company board to find the right person. The larger question remains: Whether or not a test can really determine the proficiency of a person?” said Ankit Singhi, partner, Corporate Professionals.
The current law requires all listed companies to have a third of their board members as independent directors. Their role is to ensure the interests of minority shareholders are protected and act as overseers outside the influence of the firm.
Recent corporate scams have turned the heat on company directors, who, the government feels, failed to detect any signs of trouble.
Data indicates that the rate of resignation of independent directors from the boards of listed companies has increased significantly in comparison to previous years.
A total of 606 independent directors resigned from the National Stock Exchange-listed company boards in 2018. In comparison, 412 independent directors resigned between January 1 and July 22 this year.
The report also said that while the Companies Act seeks to limit the liability of independent and non-executive directors by providing for certain safe harbours designed specifically for them, they come to their rescue only after investigative or legal proceedings have been initiated against them. #casansaar (Source - MCA, Economic Times)
Category : MCA | Comments : 0 | Hits : 808
In a relief to India Inc, the Ministry of Corporate Affairs (MCA) has raised the threshold limit for mergers and amalgamations (M&As) that need approval of the Competition Commission of India (CCI). In its latest notification, the MCA has enhanced the threshold value by 150 per cent on the basis of the wholesale price index (WPI) and exchange rate of the rupee. In another notification, the MCA has said that if the acquisition target has an asset value of less than Rs 450 crore or...
The Ministry of Corporate Affairs (MCA) will soon open its Central Processing Centre (CPC) for processing of forms related to all compliances for companies. This is aimed to free up capacity at the offices of Regional Directors and Registrar of Companies to deal with enforcement matters, official sources said. With CPC, the ministry will have launched the fourth centre to focus on specific areas of filing non-straight through process or non-STP forms.
The ministry of corporate affairs in India has granted 1,270 requests from professional associations - including company secretaries and chartered accountants - to deactivate or merge duplicated user IDs in the first month of permitting the move. The move was to allow such professionals to file corporate details via the latest MCA 21 portal, which allows only individual IDs per user. Earlier versions of the software had allowed multiple IDs, leading to filing difficulties.
The Ministry of Corporate Affairs has already struck off hundreds of thousands of shell companies that are often used to funnel black money, the report said quoting sources in the know The Ministry of Corporate Affairs (MCA) is planning to further intensify its crackdown against non-functional (shell) companies, the Economic Times (ET) reported. The MCA has already struck off hundreds of thousands of shell companies that are often used to funnel black money, the report said, quoting source...
With the critical Corporate Affairs Ministry portal, MCA-21, still ridden with glitches, hampering everything from registration of new firms to routine filings by existing firms, the Ministry has decided to hold parleys on the challenges faced by industry. “Stakeholders’ consultations” on the issues related to the MCA-21 Version-3 portal will be steered by the Ministry’s top official, Secretary Manoj Govil, with compliance practitioners in Chennai on June 20 and Hydera...
Comments