Executive Summary:
This notification, G.S.R. 774(E), published on December 18, 2020, amends the Companies (Appointment and Qualification of Directors) Rules, 2014. The amendment pertains to rule 6 regarding the online proficiency self-assessment test for directors. It alters the timeframe and conditions under which individuals are required to take the test. The rules come into force on the date of publication in the Official Gazette.
Key Points / Main Content:
Amendments to Director Qualification Rules:
* These rules are called the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2020.
* Effective date is the date of publication in the Official Gazette.
Changes to Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014:
* Sub-rule 4(i): The words "one year" are substituted with "two years".
* Sub-rule 4(ii): The original first and second provisos are replaced with new provisos concerning the online proficiency self-assessment test.
* Exemption from Online Proficiency Self-Assessment Test: An individual is exempt if they have served at least three years as a director or key managerial personnel in specific types of companies or bodies corporate as of the date their name is included in the data bank. These include:
* Listed public companies.
* Unlisted public companies with paid-up share capital of ten crore rupees or more.
* Bodies corporate listed on recognized stock exchanges or in Financial Action Task Force member states with securities market regulators who are members of the International Organization of Securities Commissions.
* Bodies corporate incorporated outside India with paid-up share capital of US$2 million or more.
* Statutory corporations set up under an Act of Parliament or any State Legislature carrying on commercial activities
* Individuals in the pay scale of Director or above in specific government ministries with experience in corporate, securities, or economic laws.
* Individuals in the pay scale of Chief General Manager or above in regulatory bodies like SEBI, RBI, IRDAI, or PFRDA with experience in corporate, securities, or economic laws.
* Calculation of Three-Year Period: If an individual served as a director or key managerial personnel in multiple entities simultaneously, the period is counted only once.
* Explanation Item b: The words "sixty percent" are substituted with "fifty percent".
Impact Analysis:
Individuals serving as Directors or Key Managerial Personnel:
* Impact: Alters the conditions for exemption from the online proficiency self-assessment test, potentially affecting the pool of eligible directors.
* Action Required: Individuals need to assess their eligibility for exemption based on the revised criteria and timelines.
Companies:
* Impact: Impacts the pool of eligible individuals to be appointed as Directors.
* Action Required: Companies need to understand the updated rules to ensure compliance in the appointment and qualification of their directors.
Key Entities Referenced
Companies Act, 2013: A law enacted by the Parliament of India that regulates incorporation, operation, and winding up of companies.
Central Government: The executive authority of the Union of India.
Companies Appointment and Qualification of Directors Rules, 2014: A set of rules framed under the Companies Act, 2013, governing the appointment and qualifications of company directors.
Companies Appointment and Qualification of Directors Fifth Amendment Rules, 2020: An amendment to the Companies Appointment and Qualification of Directors Rules, 2014.
Ministry of Corporate Affairs: A ministry in the Government of India responsible for administration of the Companies Act, 2013 and other related laws and regulations.
Financial Action Task Force on Money Laundering: An inter-governmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
International Organization of Securities Commissions: An association of organizations that regulate the world's securities and futures markets.
Securities and Exchange Board: The regulator of the securities market in India.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-18122020-223776
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CG-DL-E-18122020-223776
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 642] नई ददल्ली, िुक्रवार, ददसम्ब र 18, 2020/अग्रर्ायण 27, 1942
No. 642] NEW DELHI, FRIDAY, DECEMBER 18, 2020/AGRAHAYANA 27, 1942
कारपोरेट काय यमत्रं ालय
अजधसचू ना
नई ददल्ली, 18 ददसम् बर, 2020
सा.का.जन. 774(अ).—केंद्रीय सरकार, कंपनी अजधजनयम, 2013 (2013 का 18) की धारा 469 के साथ पठित
धारा 149 द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, कंपनी (जनदेिकों की जनयुजि और अर्तय ा) जनयम, 2014 का और
संिोधन करने र्ते ु जनम्नजलजखत जनयम बनाती र्,ै अथायत्:-
1. (1) इन जनयमों का संजिप्त नाम कंपनी (जनदेिकों की जनयुजि और अर्तय ा) पांचवां संिोधन जनयम, 2020 र्।ैं
(2) य ेरािपत्र में उनके प्रकािन की तारीख से प्रवृत्त र्ोंगे।
2. कंपनी (जनदिे कों की जनयुजि और अर्तय ा) जनयम, 2014 के जनयम 6 म,ें
(क) उप-जनयम (4) में,-
(i) “से एक वर्”य िब्दों के स्ट्थान पर “से दो वर्”य िब्द प्रजतस्ट्थाजपत दकए िाएंगे;
(ii) पर्ले और दसू रे परंतुक के स्ट्थान पर, जनम्नजलजखत परंतुक रखे िाएंगे, अथायत ् –
“परंत ु यर् दक दकसी व्यजि को ऑनलाइन प्रवीणता स्ट्व-मूल्यांकन परीिा उत्तीणय करना अपेजित नर्ीं
र्ोगा यदद उसन े डाटा बैंक म ें अपन े नाम के समावेिन की तारीख स े कुल तीन वर्ों की अवजध तक सेवा
की र्ो,-
6177 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(क) डाटा बैंक में अपने नाम के समावेिन की तारीख से जनदेिक अथवा प्रमुख प्रबंधकीय कार्ममक के रूप म ें
जनम्नजलजखत में से एक अथवा अजधक में कायय दकया र्ो, अथायत् –
(क) सूचीबद्ध सावयिजनक कंपनी; अथवा
(ख) दस करोड़ रुपये अथवा उसस े अजधक की संदत्त िेयरपूंिी रखने वाली असूचीबद्ध सावयिजनक कंपनी;
अथवा
(ग) दकसी मान्यताप्राप्त स्ट्टॉक एक्सचेंि अथवा देि म ें सूचीबद्ध कारपोरेट जनकाय िो धन िोधन के संबंध म ें
जवत्तीय कारयवाई काययबल का सदस्ट्य राज्य र्ो और ऐसे सदस्ट्य राज्य में प्रत्याभूजत बािार का जवजनयामक
प्रत्याभूजत कमीिन के अंतराष्ट्रय ीय संगिन का सदस्ट्य र्ो; अथवा
(घ) 2 जमजलयन अमेठरकी डॉलर अथवा उससे अजधक की संदत्त िेयरपूंिी रखन े वाल े भारत के बार्र
जनगजमत जनकाय कारपोरेट; अथवा
(ङ) संसद के या दकसी राज्य की जवधाजयका के अजधजनयम के अधीन गठित वाजणजज्यक दक्रयाकलाप करन े
वाले सांजवजधक जनगम; अथवा
(ख) कारपोरेट कायय मंत्रालय अथवा जवत्त मंत्रालय अथवा वाजणज्य और उद्योग मंत्रालय अथवा भारी उद्योग एवं
लोक उद्यम मंत्रालय म ें जनदेिक अथवा उससे ऊपर के वेतनमान में और कारपोरेट जवजधयों अथवा प्रत्याभूजत
जवजधयों अथवा आर्मथक जवजधयों से संबंजधत मामलों को संचाजलत करन े का अनुभव;
(ग) प्रत्याभूजत और जवजनमय बोड य अथवा भारतीय ठरज़वय बैंक अथवा भारतीय बीमा जवजनयामक और जवकास
प्राजधकरण अथवा पिें न जनजध जवजनयामक और जवकास प्राजधकरण म ें मुख्य मर्ाप्रबंधक अथवा उससे ऊपर के
वेतनमान म,ें और कारपोरेट जवजधयों अथवा प्रत्याभूजत जवजधयों अथवा आर्मथक जवजधयों स े सबं ंजधत मामलों को
संचाजलत करन े का अनुभव;”।
परंतु यर् और दक प्रथम परंतुक में संदर्मभत तीन वर् य की अवजध की संगणना के प्रयोिनाथ य दकसी ऐसी अवजध को
जिसके दौरान व्यजि ने दो या दो से अजधक कंपजनयों अथवा कारपोरेट जनकाय अथवा सांजवजधक जनगमों में एक र्ी समय में
जनदेिक अथवा प्रमुख प्रबंधकीय कार्ममक के रूप में कायय दकया र्ो, उसे एक र्ी कायय के रूप म ेंजगना िाएगा;
(ख) स्ट्पिीकरण म,ें मद (ख) म,ें “साि प्रजतित” िब्दों के स्ट्थान पर, “पचास प्रजतित” िब्द रख ेिाएंगे।
[फा. सं. 8/4/2018-सीएल-I, पाट-य I]
के. वी. आर. मूर्मत, संयुि सजचव
ठटप्पण : मलू जनयम भारत के रािपत्र, असाधारण, भाग-II, खंड-3, उपखडं (i) म ें अजधसूचना संख्याक सा.का.जन. 259(अ)
तारीख 31 माच,य 2014 द्वारा प्रकाजित दकए गए थे और इसमें अजधसूचना सख्ं यांक सा.का.जन. 589(अ) तारीख
28 जसतंबर, 2020 द्वारा अंजतम संिोधन दकया गया था।
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 18th December, 2020
G.S.R. 774(E).—In exercise of the powers conferred by section 149 read with section 469 of the
Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to
amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:-
1. (1) These rules may be called the Companies (Appointment and Qualification of Directors) Fifth
Amendment Rules, 2020.
(2) They shall come into force on the date of their publication in the Official Gazette.[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
2. In the Companies (Appointment and Qualification of Directors) Rules, 2014, in rule 6,-
(a) in sub-rule (4),-
(i) for the words “one year from” the words “two years from” shall be substituted;
(ii) for the first and second proviso, the following provisos shall be substituted, namely :-
“Provided that an individual shall not be required to pass the online proficiency
self-assessment test when 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,-
(A) as a director or key managerial personnel, as on the date of inclusion of his name in the
databank, in one or more of the following, namely:-
(a) listed public company; or
(b) unlisted public company having a paid-up share capital of rupees ten crore or more; or
(c) 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
(d) bodies corporate incorporated outside India having a paid-up share capital of US$ 2 million
or more; or
(e) statutory corporations set up under an Act of Parliament or any State Legislature carrying
on commercial activities; or
(B) 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
(C) 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 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 :
Provided further that for the purpose of calculation of the period of three years referred to
in the first proviso, any period during which an individual was acting as a director or as a key
managerial personnel in two or more companies or bodies corporate or statutory corporations at
the same time shall be counted only once.”;
(b) in the Explanation, in item (b), for the words “sixty percent”, the words “fifty percent” shall be
substituted.
[F. No. 8/4/2018-CL-I- Part I]
K. V. R. MURTY, Jt. Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i) vide notification number G.S.R. 259(E), dated the 31st March, 2014 and were last
amended vide notification number G.S.R. 589 (E), dated the 28th September, 2020.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.