Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 notified by IBBI
The IBBI has notified the Insolvency Resolution Process for Corporate Persons Regulations, 2016 applicable w.e.f. 1 Dec. 2016, relating to activities from initiation of corporate insolvency resolution process (CIRP) till its conclusion with approval of the resolution plan by the Adjudicating Authority, in exercise of its powers conferred under section 240 of the Insolvency and Bankruptcy Code, 2016, as under:
IBBI/2016-17/GN/REG004.—In exercise of the powers conferred under sections 5, 7, 9, 14, 15, 17, 18, 21, 24, 25, 29, 30, 196 and 208 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following Regulations, namely-
1. Short title and commencement.
(1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
(2) These Regulations shall come into force on 1st December, 2016.
(3) These Regulations shall apply to the corporate insolvency resolution process.
2. Definitions. …contd… (please refer attachment)
Salient Features of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
These Regulations inter-alia provides for as under:
i) prohibit an insolvency professional from acting as a resolution professional for CIRP of a corporate debtor if he is not independent of the corporate debtor;
ii) prohibit partners or directors of an insolvency professional entity of which the insolvency professional is a partner or director from representing other stakeholders in the same CIRP;
iii) oblige the insolvency professional to make disclosures (initial and continuing) if he has any pecuniary or personal relationship with any of the stakeholders entitled to distribution of assets;
iv) specify the manner and contents of public announcement, receipt and verification of claims of creditors, formation of committee of creditors, and manner of holding meetings of committee of creditors and voting in such meetings;
v) specify the contents of information memorandum and of resolution plan, including its implementation schedule, and the manner of determination of liquidation values; and
vi) specify the components of resolution process costs and scope of essential supplies.