IBBI of India amends the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017

Last updated: 06 August 2020

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The Insolvency and Bankruptcy Board of India (IBBI) has introduced amendments to the Voluntary Liquidation Process Regulations of 2017. These changes allow a corporate person, under specific circumstances, to replace the appointed liquidator by passing a resolution. This amendment aims to provide flexibility in the voluntary liquidation process.

Insolvency and Bankruptcy Board of India

No. IBBI/PR/2020/09

05th August, 2020

The Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020 today.

2. The Insolvency and Bankruptcy Code, 2016 enables a corporate person to initiate voluntary liquidation process if it has no debt or it will be able to pay its debts fully from the proceeds of the assets. The corporate person appoints an insolvency professional to conduct the voluntary liquidation process by a resolution of members or partners, or contributories, as the case may be. However, there can be situations which may require appointment of another resolution professional as the liquidator. The amendment made to the Regulations today provides that the corporate person may replace the liquidator by appointing another insolvency professional as liquidator by a resolution of members or partners, or contributories, as the case may be.

3. The amended regulations are effective from today. These are available at www.mca.gov.in and www.ibbi.gov.in.