{"id":33804,"date":"2018-10-30T14:29:29","date_gmt":"2018-10-30T08:59:29","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=33804"},"modified":"2018-10-30T14:29:29","modified_gmt":"2018-10-30T08:59:29","slug":"bankruptcy-code-to-be-amendedth","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/bankruptcy-code-to-be-amendedth\/","title":{"rendered":"Bankruptcy code to be amended(TH)"},"content":{"rendered":"<p><strong><a href=\"http:\/\/www.thehindu.com\/news\/national\/bankruptcy-code-to-be-amended\/article20667488.ece\">Bankruptcy code to be amended<\/a>(TH)<\/strong><\/p>\n<p><strong>Context<\/strong><\/p>\n<p>The Union Cabinet has approved a proposal to promulgate an Ordinance to amend the Insolvency and Bankruptcy Code (IBC)<\/p>\n<p><strong>Objective<\/strong><\/p>\n<p>The move is intended to strengthen the IBC. It will<\/p>\n<ul>\n<li><strong>Prevent certain persons from regaining control<\/strong>: Prevent certain persons \u2014 including wilful defaulters, disqualified directors, those who have indulged in fraudulent transactions as well as promoters whose account is classified as non-performing assets (NPA) beyond a prescribed duration \u2014 from regaining control of the defaulting company through the backdoor in the garb of a resolution applicant<\/li>\n<li>Ensure that promoters of defaulting firms are prevented from bidding for businesses that they ran to the ground in the first place.<\/li>\n<\/ul>\n<p><strong>What is IBC?<\/strong><\/p>\n<p>The IBC, passed in 2016, provides for an effective and robust legal framework for \u201c<strong>time-bound<\/strong> insolvency resolution to release assets locked up in NPA and making the whole process of shutting down and exiting a business less time consuming and smoother<\/p>\n<p><strong>Operation of IBC<\/strong><\/p>\n<ul>\n<li><strong>Shifting of control<\/strong>: When a firm defaults on its debt, its control will shift to a committee of creditors.<\/li>\n<li><strong>Specific timeperiod<\/strong>: The committee will have <strong>180 days<\/strong> to evaluate proposals from various interested parties on how to either resuscitate the company or enable liquidation.<\/li>\n<li><strong>Insolvency professionals<\/strong>: The code has provisions for the creation of \u2018insolvency professionals\u2019 who would handle the commercial aspects of the resolution process.<\/li>\n<li><strong>Insolvency professional agencies<\/strong> will train and regulate these professionals.<\/li>\n<li><strong>Debt Recovery Tribunal<\/strong>: The Debt Recovery Tribunal act as adjudicating authorities for individuals and unlimited partnership firms and National Company Law Tribunal for companies and limited liability entities.<\/li>\n<li><strong>Insolvency and Bankruptcy Board of India<\/strong> will be the overall regulator<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Bankruptcy code to be amended(TH) Context The Union Cabinet has approved a proposal to promulgate an Ordinance to amend the Insolvency and Bankruptcy Code (IBC) Objective The move is intended to strengthen the IBC. It will Prevent certain persons from regaining control: Prevent certain persons \u2014 including wilful defaulters, disqualified directors, those who have indulged&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/bankruptcy-code-to-be-amendedth\/\">Continue reading <span class=\"screen-reader-text\">Bankruptcy code to be amended(TH)<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-33804","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704933010},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=33804"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33804\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=33804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=33804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=33804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}