IBBI notifies two regulations
Insolvency and Bankruptcy Board (IBBI) of India have notified two Regulations- the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 and IBBI (Insolvency Professional Agencies) Regulations, 2016. The regulations have been notified by the IBBI in exercise of its powers conferred under section 240 of the Insolvency and Bankruptcy Code, 2016
The two regulations provide eligibility norms to be a Professional Member of an Insolvency Professional Agency and norms to get registered with the IBBI as an Insolvency Professional Agency. Accordingly, a company registered under Section 8 of the Companies Act, 2013 having a minimum net worth of Rs. 10 crore is eligible to be an Insolvency Professional Agency. Over half of its Directors should be independent directors and not more than one-fourth of the Directors can be insolvency professionals. It shall have Membership Committee(s), Monitoring Committee, Grievance Redressal Committee(s), and Disciplinary Committee(s) for the purposes of regulation and oversight of professional members.
Insolvency and Bankruptcy Code, 2016 seeks to ensure time-bound settlement of insolvency, faster turnaround of businesses and create a unified database of serial defaulters.
IBBI has been set up by the code to regulate professionals, agencies and information utilities (IUs) engaged in the resolution of insolvencies of companies.