About Independent Directors Databank

 The Independent Directors Databank is an initiative of the Ministry of Corporate

Affairs for the capacity building of the existing Independent Directors, in order to
inculcate the high standards of corporate governance in India.

 The Databank is a key instrument to enable Independent Directors to become “Agents

of Change” on the corporate boards.

 The databank has been developed in accordance with the provisions of the Companies
Act 2013 as mentioned below:

Section 150 of the Companies Act, 2013 provides that “an independent director can
be selected from a data bank maintained by any-body, institute or association, as may
be notified by the Central Government. The data bank would contain names,
addresses and qualifications of persons who are eligible and willing to act as
independent directors. The company needs to ensure exercise of due diligence before
selecting an independent director from the data bank”.

 On 22nd October 2019, the Ministry of Corporate Affairs (MCA) notified the
Companies (Creation and Maintenance of databank of Independent Directors) Rules,
2019 and amended the Companies (Appointment and Qualification of Directors) Fifth
Amendment Rules, 2019.

 The Companies (Creation and Maintenance of Databank of Independent Directors)

Rules, 2019 effective from 1st December, 2019 authorised Indian Institute of
Corporate Affairs (IICA) to act as the institute or association, responsible for the
creation and maintenance of the online databank containing names, addresses and
qualifications of existing Independent Directors and persons who are eligible and
willing to act as Independent Directors.

 In furtherance, IICA was also entrusted with the duty to conduct an online proficiency
self-assessment test of the Independent Directors, which would be available from 01st
March 2020.

 The databank focuses on the following key objectives:

1) Empanelment of existing Independent Directors as well as the professionals
aspiring to become independent directors.
2) Build capacities of Individuals by delivering eLearning courses on topics related
to corporate governance, regulatory framework, financial prudence, and other
important aspects
3) Provide a platform to individuals to help them acquire knowledge, develop new
skills, assess their understanding, and apply best practices.
4) Create an eco-system of individuals looking for opportunities and corporate
requiring to appoint independent directors.