IICA to maintain data bank of independent directors

The Indian Institute of Corporate Affairs (IICA) will maintain a data bank of independent directors, the government said on Tuesday.

The institute comes under the Ministry of Corporate Affairs, which is implementing the Companies Act.

In a notification, the ministry said IICA would maintain a data bank of independent directors.

Under the Companies Act, 2013, there are provisions that a company can choose an independent director from a data bank of persons who are eligible and willing to act as independent directors.

The IICA would "create and maintain a data bank containing names, addresses and qualifications of persons who are eligible and willing to act as independent directors, for the use of the company making the appointment of such directors," the notification said.

The notification would be effective from December 1, 2019.

Independent directors have a substantial role in ensuring good governance practices at corporates. In recent times, many individuals have come under the regulatory lens in connection with irregularities at companies where they were serving as independent directors.