Fourth Amendment to CIRP Regulations
Insolvency and Bankruptcy Board of India being the key pillar for implementation of Insolvency and Bankruptcy Code, 2016, is playing vital role to promote development and regulate the profession and processes. In a very short span of IBC’s evolution, it underwent various amendments, both in the code and regulations as well.
On 5th October, 2018, IBBI has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2018, effective from 5th October, 2018.
The brief of changes due to the above amendment is mentioned under –
1. “Dissenting Financial creditors” is removed from the regulations. No priority to dissenting financial creditors in payment.
2. The Regulations earlier provided payment of liquidation value to operational creditors and dissenting financial creditors in priority. The amendment has substituted the said regulations to provide that the amount due to operational creditors under the resolution plan shall be paid in priority over financial creditors.
3. Now its not mandatory that all the members of CoC to be present for voting to be taken.
4. the resolution professional must circulate the minutes of the meeting by electronic means to authorized representative(s) also.
5. Preservation of records of CIRP as per record retention schedule to be notified by IBBI/IPA.
Insolvency Professional must be geared up for any amendments happening in the IBC.