Who can become an Independent Director in India?
Under Section 149(6) of the Companies Act, 2013, an individual with suitable expertise, experience and integrity can be appointed as an Independent Director if the person satisfies the statutory independence criteria.
A DIN is required for appointment as a director.
Independent Directors Databank - Home Page : ID Platform
Registration with the Independent Directors Databank is generally compulsory for an individual who intends to be appointed as an Independent Director in India, under Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014.
However, registration and passing the proficiency test are two separate requirements:
Databank registration: Mandatory.
Online proficiency self-assessment test: Mandatory within 2 years; unless the individual qualifies for an applicable exemption.
Independent Directors Databank – Exemption from Proficiency Test
Under Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, individuals with at least 10 years of experience in practice as a Company Secretary, Chartered Accountant, Cost Accountant or Advocate are exempt from passing the online proficiency self-assessment test, subject to the prescribed conditions. Certain individuals with at least three years of qualifying experience as directors or Key Managerial Personnel (KMPs) may also be exempt.
However, exemption from the proficiency test does not exempt an individual from registration with the Independent Directors Databank.
So databank registration is a prerequisite along with DIN for becoming Independent Director.
