The Ministry of Corporate Affairs (MCA) on 22 October 2019 notified the: (1) Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019; (2) Companies (Creation and Maintenance of Data Bank of Independent Directors) Rules, 2019; and (3) Companies (Accounts) Amendment Rules, 2019. The substantive provisions of each of the rules came into force from 1 December 2019.
Section 150 of the Companies Act, 2013 provided that the central government would take steps to create a centralized data bank of individuals who were qualified and willing to act as independent directors for Indian companies. The data bank was meant to serve as a reference point for individuals who can serve on their boards.
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The business law digest is compiled by Nishith Desai Associates, a research-based international law firm with offices in Mumbai, New Delhi, Bengaluru, Singapore, Silicon Valley, Munich and New York. The firm specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.