The Insolvency and Bankruptcy Board of India (IBBI) on October 05, 2023, issued a Discussion Paper on Streamlining the Voluntary Liquidation Process.
The following has been stated namely: -
• The Code and IBBI (Voluntary Liquidation Process) Regulations, 2017 (' Voluntary Liquidation Regulations’) provide for a completely market-driven approach in the voluntary liquidation process in order to ensure faster outcomes at the least possible cost
• The following was proposed: -
1. The directors of the corporate person while making a declaration for initiation of the process, shall also make Disclosures about pending proceedings or assessments before statutory authorities, and pending litigation, in respect of the corporate person.
2. If the liquidator fails to liquidate the corporate person within the stipulated period of 90 days or 270 days as the case may be, he shall hold a meeting of contributors of the corporate person and file within fifteen days after the end of the quarter in which the stipulated period for completion of liquidation has expired, a Status Report to the Board explaining why the liquidation has not been completed and specify, along with reasons, the additional time that shall be required for completing the process
3. Form H and final report may be submitted on the electronic platform to be notified by Circular by the Board
• The draft Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2023 is enclosed in the Annexure.
• Comments may be submitted electronically by October 26, 2023, through the recommended format given in the notification.
