In a significant step to bolster corporate governance standards, the government will introduce an online proficiency self-assessment test for independent directors from December 1.
Indian Institute of Corporate Affairs (IICA), which comes under the corporate affairs ministry, would maintain a data bank of independent directors as well as conduct the proficiency test, according to notifications issued on Tuesday.
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The requirement of test will not be applicable for certain categories of individuals, including those who have served for at least 10 years as director or key managerial personnel in a company.
Individuals, other than those exempted, have to pass the test within one year from the date of inclusion of their names in the independent directors’ data bank maintained by the IICA, as per the ministry.
Source: livemint
