Online proficiency self-assessment test for independent directors from Dec

Recent corporate scams have turned the heat on company directors, who, the government feels, failed to detect any signs of trouble

All independent directors will soon have to take an “online proficiency self-assessment test” before they are appointed to company boards, according to an amendment to the Companies Act notified by the Ministry of Corporate Affairs (MCA) on Tuesday. This rule will come into effect from December.

According to the MCA notification, the Indian Institute of Corporate Affairs (IICA) in Manesar, Harayana, will conduct this exam. It will also create and maintain a data bank with names, addresses and qualifications of people who are eligible to be appointed as independent directors for companies.

Boards of companies will have to disclose the