Insolvency & Bankruptcy

The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. It was passed by Lok Sabha on 5 May 2016. The Code received the assent of the President of India on 28 May 2016.. The bankruptcy code is a one-stop solution for resolving insolvencies which at present is a long process and does not offer an economically viable arrangement. The code will be able to protect the interests of small investors and make the process of doing business a less cumbersome process Insolvency professionals: The insolvency process will be managed by Insolvency professionals. These professionals will also control the assets of the debtor during the insolvency process. These insolvency professionals are qualified in various professions like Company Secretaryship, Cost Accountancy, Chartered Accountants, Advocates etc. An indicative list of functions carried out by a company secretary as a professional has been entailed below:- Provide advisory services to Insolvency professionals:- Preparation of Resolution Plans for Corporate Insolvency Resolution Process. To appoint Registered Valuer. To Provide Valuation Services. To Appoint Forensic Auditors. Filing of Drafting and filing of Petitions to National Company Law Tribunal Appearance Before NCLT An arrangement of Interim Finance during the Insolvency Process. To assist in selling the distressed assets. To assist in Preparing Information Memorandum and Statement of Affairs during the Corporate Insolvency Resolution Process. Preparation of Minutes after the conclusion of Committee of Creditors meeting To act as Consultants or Advisors for Corporate Debtors for providing consultancy/ Advisory services under the IBC Code 2016 To act as Insolvency Professional to represent the creditor in a meeting of Committee of Creditors. Assisting in preparation of various forms prescribed under IBC Code. Identifying strategic investors Out of Court settlements Liquidation and Winding up. etc