Please find attached amended rules on Companies (Appointment and Qualification of Directors) issued by MCA. The brief summary of the amendment is detailed below:
|2||Subject||Companies (Appointment and Qualification of Directors) Fifth Amendment Rules 2020.|
|4||Applicability||As per rule attached|
Time line is changed to 2 years i.e. now an Independent Director (ID) can give exam within period of 2 years after his name enrolled in the data bank. Timeline changed from one year to two year for Independent Director's Exam.
An ID was exempted for giving examination if he has served as a director as prescribed in rules for a minimum period of 10 years. Now the limit is reduced to 3 years subject to fulfillment of conditions as prescribed.
Exam passing percentage is reduced to 50% from 60%.
|5||Impact||This step reduces the burden on Independent Directors, Professionals as well as businesses.|