The Ministry of Corporate Affairs launched the Independent Director’s Databank in accordance with the provisions of the Companies Act, 2013. It has the objective of strengthening the institution of Independent Directors under the Companies Act.
Objectives of Independent Director’s Databank:
- Develop a databank of Independent directors - empanelment of existing Independent Directors and the professionals aspiring to become independent directors.
- Capacity building of Individuals by delivering eLearning courses on topics related to corporate governance, regulatory framework, financial prudence, and other important aspects.
- Provide a platform to individuals to help them acquire knowledge, develop new skills, assess their understanding, and apply best practices.
- Create an ecosystem of individuals looking for opportunities and corporate requiring to appoint independent directors.
Features of Independent Director’s Databank:
- Empanelment of professionals acting as Independent Directors
- Empanelment of professionals with/without DIN who wish to serve as Independent Directors
- Online courses offered through an integrated Learning Management System (LMS):
- Board Essentials Courses
- Board Practice Courses
- Newsletter and knowledge resources for continued professional development
- Profile sharing for corporate access for helping them appoint well-trained and informed Independent Director
Significance of Independent Director’s Databank:
- An easy to access & navigate platform for the registration of existing Independent Directors.
- Registration provisions for individuals aspiring to become independent directors.
- Provides a platform for mutual aspiration of both an Individual and the Companies.
- The Indian Institute for Corporate Affairs (IICA) will maintain the Databank portal.
- To provide a wide array of e-learning courses on various topics including the Companies Act, Securities laws, basic accountancy, board practices, board ethics and board effectiveness.
- All existing Independent Directors are required to register themselves in the databank within 3 months from 01 December 2019.
Independent Directors serve as an important Institution of corporate governance contributing significantly at the boards. They possess a diverse set of skills with an independent judgement on the significant issues. The provision of a nomination of the non-executive independent director on the board of Tata Trust is worth to be replicated elsewhere. The proposed Independent Director’s Databank will further help to improve the corporate governance better.