MCA has relaxed certain provisions under the law w.r.t. mandatory online proficiency self-assessment test that one has to undergo, post inclusion of his/her name in the data bank, to make themselves eligible for appointment as an Independent Director.

Major amendments:

  • Individuals are now allowed to appear for an online proficiency self-assessment test within two years (as against one year), from the date of inclusion of his/her name in the data bank.
  • MCA has also revised the list of exemption criteria for an individual, to exempt them from appearing the online test. The complete list can be accessed from the notification.
  • Tenure of directorship in certain classes of companies, for claiming exemption from the online test, has been reduced from 10 years to 3 years.
  • An individual shall be deemed to be passed in an online test, by securing 50% in such test (Earlier it was 60%)


Effective date: Dec. 17, 2020


Source: Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2020


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