Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2018

Oct 08, 2018 | by Avantis RegTech Legal Research Team

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The Insolvency and Bankruptcy Board of India (IBBI) has published the Insolvency Resolution Process for Corporate Persons (Fourth Amendment) Regulations, 2018 on October 05, 2018, to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Some of the major amendments made in Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 are as under:

·         In Regulation 2(1), clause (f) which defines “dissenting financial creditors” shall be omitted;

·         In Regulation 21(3), which specifies contents of the notice for meeting, the following sub- regulation shall be substituted, namely:

“(3) The notice of the meeting shall contain the following-       

                                             i.            a list of the matters to be discussed at the meeting;         

                                           ii.            a list of the issues to be voted upon at the meeting; and     

                                          iii.            copies of all documents relevant to the matters to be discussed and the issues                            to be voted upon at the meeting.”

·         In Regulation 25(5) which specifies the procedure for voting by the Committee, the following sub-regulations shall be substituted, namely:    

“(5) The resolution professional shall-

                                             i.            Circulate the minutes of the meeting by electronic means to all members of the committee and the authorised representative, if any, within forty-eight hours of the conclusion of the meeting; and

                                           ii.            Seek a vote of the members who did not vote at the meeting on the matters listed for voting, by electronic voting system in accordance with regulation 26 where the voting shall be kept open for at least twenty-four hours from the circulation of the minutes.

(6) The authorised representative shall circulate the minutes of the meeting received under sub-regulation (5) to creditors in a class and announce the voting window at least twenty-four hours before the window opens for voting instructions and keep the voting window open for at least twelve hours.”

·         In Regulation 26 which specifies the right of the Committee to vote by using electronic means, after sub-regulation (1), the following sub-regulation shall be inserted, namely: -

“(1A) the authorised representative shall exercise the votes either by electronic means or through electronic voting system as per the voting instructions received by him from the creditors in the class pursuant to sub-regulation (6) of regulation 25.”

·         In Regulation 38 which specifies the mandatory contents of the resolution plan, for sub-regulation (1), the following sub-regulation shall be substituted, namely: -

“(1) The amount due to the operational creditors under a resolution plan shall be given priority in payment over financial creditors.”

·         In Regulation 39 which specifies the procedure to be followed by the resolution applicant for the approval of resolution plan:

                                             i.            In sub-regulation (1), clause (b) shall be omitted;

                                           ii.            Sub-regulation (3A) shall be omitted;

·         After Regulation 39, the following regulation shall be inserted, namely: -

“39A. Preservation of records.-The interim resolution professional or the resolution professional, as the case may be, shall preserve a physical as well as an electronic copy of the records relating to corporate insolvency resolution process of the corporate debtor as per the record retention schedule as may be communicated by the Board in consultation with Insolvency Professional Agencies.”.                    

 

These Regulations shall come into force on the date of their publication in the Official Gazette.         

 

[No. IBBI/2018-19/GN/REG032]

URL:   http://ibbi.gov.in/webadmin/pdf/whatsnew/2018/Oct/CIRP%20Amendment-5.10.2018_2018-10-05%2023:21:24.pdf


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