Q. With reference to Insolvency and Bankruptcy Code (IBC) 2016, which one of the following statements is correct?

[A] It allows companies to indefinitely delay the resolution process for their insolvency issues, leading to a delay for creditors and stakeholders.

[B] It emphasizes maximizing the value of the assets of the insolvent entity for the benefit of all stakeholders, including creditors, employees, and shareholders.

[C] It prevents creditors from pursuing debtors for repayment.

[D] Under the IBC, debtors have the flexibility to employ a wide-range of approach of their choice for settling their debts, including the utilization of cryptocurrencies.

Answer: B
Notes:

Explanation – IBC emphasizes maximizing the value of the assets of the insolvent entity for the benefit of all stakeholders, including creditors, employees, and shareholders. The IBC’s primary objective is to maximize the value of the assets of the insolvent entity for the benefit of all stakeholders, including creditors, employees, and shareholders. The IBC recognizes that a successful resolution process can result in a better outcome for all involved, rather than a liquidation, which could result in the loss of jobs and a lower recovery for creditors.

Source: ForumIAS

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