Insolvency and Bankruptcy Board of India(IBBI)
What is Insolvency and Bankruptcy Board of India?
Insolvency and Bankruptcy Board of India was brought into existence on 1st October 2016 under Insolvency and Bankruptcy Code, 2016.
Official site, Insolvency and Bankruptcy Board of India, Retrieved on 11th December 2017
The board regulates insolvency and transaction of the Professionals, Professional Agencies and also Information Utilities. It frames and also enforces rules for transactions such as corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy. The board is a key pillar for implementing the Code. It is the refereeing institution with multiple tasks. Code governs the laws relating to reorganization and insolvency resolution. It covers also corporate persons, partnership firms and individuals for maximizing the value of assets of such persons and also to promote entrepreneurship and balance the interests of all the stakeholders. Chairperson of IBBI is D.r. M. S. Sahoo.
Responsibility of Insolvency and Bankruptcy Board of India
- The primary responsibility is to frame and also amend laws relating to reorganization and also insolvency resolution of corporate persons, partnership firms and individuals.
- It must frame rules and regulations for insolvency procedures, institutions and professionals. Till now, it has framed three sets of regulations i.e regulations for Insolvency Professionals, Insolvency Agencies and Model Bye-Laws and Governing Board of Insolvency Professional Agencies.
- The regulations aims to create laws for the voluntary liquidation of any corporate person. The term corporate person includes any company incorporated under the Companies Act and also includes limited liability partnership or any other person incorporated with limited liability but does not include any financial service provider.
- The regulations makes provision for public announcement, receipt and also for verification of claims. Liquidator shall maintain and submit reports and registers. Realization of assets and distribution of proceeds to stakeholders, distribution of residual assets, and finally dissolution of corporate person.
- It will be assisted by two advisory panels for providing solution on various matters.
Powers of Insolvency and Bankruptcy Board of India
- Framing laws for and administering the insolvency and bankruptcy regime in India.
- Registration of insolvency agencies and professionals.
- Charging Fess for registration.
- Specifying the regulations and also standards for agencies and professionals.
- Carrying out inspections and also investigations.
Structure of Insolvency and Bankruptcy Board of India
Following is the structure of the IBBI.
- One Chairperson – D.r. M. S. Sahoo. (First Chairperson)
- Three members from Central Government officers not below the rank of Joint Secretary or equivalent.
- One nominated member from the RBI.
- Five members nominated by the Central Government; of these, three shall be whole-time members.
Hence, there are ten members on the board. Independent director shall be more than 50%.