Get to Board: Need to Register on Databanks
India is the only country having a provision for databank for independent directors as per the new companies act 2013.
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 the exercise of due diligence before selecting an independent director from the data bank”.
There are three major data banks in India
“Institute of Directors,” India maintains a huge databank of individuals who are qualified, eligible, and willing to be Independent Directors on Corporate Boards. IOD has set up this portal under the name ONEID (Organization for Non-Executive Independent Directors).
Upon registration with the IICA data bank, the individuals are required to pass an online proficiency self-assessment test within a period of 1 year from the date of inclusion of his name in the data bank, failing which, his name shall stand removed from the databank of the institute. The Databank also provides for the provision registration of the Companies enabling them to search, select and connect with individuals who possess the right skills and attitude for being considered for appointment as Independent Directors.
Launched in 2005 This website has been conceived and developed and is owned by PRIME Database, the premier database on the primary capital market. It seeks to analyse and classify the CVs on various parameters such as qualification, skill sets and nature of experience, etc.
India as a country has taken a major step in introducing the concept of the database for independent directors but it has led to more confusion than serving any meaningful purpose. The aspiring directors mistakenly believe that this database is similar to an employment exchange, when in fact it is not. The independent directors are mostly selected directly by the promoters and enrolled in the data bank of IICA before issuing the appointment letter. The owners of these databanks have not made serious marketing efforts and hence the prospecting boards do not reach out to them.
Please do get impaneled at least on the IICA’s “data bank of independent directors.” But please do so more as a necessary evil than any hope for the opportunity coming to you from such databanks.