THE GIST of Editorial for UPSC Exams : 14 March 2020 (How to crack the new test for independent directors (Mint))

How to crack the new test for independent directors (Mint)

Mains Paper 4:Ethics
Prelims level: Not much
Mains level: Society and educational institutions in inculcating values

Context:

• The Indian Institute of Corporate Affairs, tasked with creating and maintaining a database of all persons eligible and willing to act as independent directors on boards, now conducts an online proficiency test for the job.

Background:

• Till 30 November 2019, listed companies and other prescribed unlisted public companies were not required to select independent directors (IDs) from an approved databank of names.
• However, the situation changed on 1 December 2019, after the ministry of corporate affairs (MCA) notified the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, and the Companies (Accounts) Amendment Rules, 2019.

About the test process:

• MCA appointed the Indian Institute of Corporate Affairs (IICA) to create and maintain a database of all persons eligible and willing to act as IDs, including existing directors, and conduct an online proficiency test.
• The test started on 1 March ...................................................

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About the syllabus:

• The syllabus is vast—Companies Act, 2013, Securities Law, basic accountancy, accounting details, financial ratios, secretarial audit and secretarial standards, all about board composition and functions, corporate social responsibility, corporate frauds, including case studies, and enterprise risk management.

Conclusion:

• The test is not a race against time like the Common Admission Test or other competitive exams.
• This test is about knowing the fundamentals, understanding the question, and picking the right answer.
• In most questions, if you are not sure, almost all four choices appear correct. That is how the questions are designed.

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  General Studies Pre. Cum Mains Study Materials

Prelims Questions:

Q.1)Consider the following statements:
1. Sanitary napkin manufacturing companies will have to compulsorily provide bio-degradable disposal bags in the packets from January next year.
2. Sanitary napkins are classified as “medical products", thereby companies are not required by law to disclose what goes into their making on product packs.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: ..............................................

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Mains Questions:
Q.1) What is the cognitive learning? How it became useful among various private institutions?