On 13 May 2026, the Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2026 to amend the Insolvency and Bankruptcy Board of India (Model Bye- Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016.
The provisions came into force on 13 May 2026.
Effect of Amendment:
The amendment mainly revises the “Composition of Governing Board” discussed under Regulation 5 and “Managing Director’s Appointment Process” discussed under Regulation 5-A of the IBBI (Model Bye- Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016.
Revision in “Composition of Governing Board- Nominee Director”:
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Now, the Board will also consist of a “Nominee Director”.
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The inclusion of a Nominee Director will not change the minimum limit of other directors (Managing Director, Independent Directors, Shareholder Directors) required to form a Board, i.e. 7 directors.
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The Nominee Director will have the same rights, duties, powers, and responsibilities as all other directors of the governing Board.
Revision in provisions relating to “Independent Director”:
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Apart from other requirements to be an Independent Director, the following eligibility restrictions have been added:
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He cannot be a member of any statutory regulator that has sponsored or promoted the insolvency professional agency.
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He cannot hold shares/ exercise control over such an insolvency professional agency.
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He cannot be an Independent Director of any other insolvency professional agency.
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An individual can serve as an Independent Director for up to 2 terms of 3 years each (or part of a term), or until they turn 75 years, whichever comes earlier.
Although, the 2nd term will be subject to a satisfactory performance review of the 1st term by the Governing Board and prior approval of the Board.
Revision in provisions relating to “Managing Director”:
For appointment/ renewal of the Managing Director, the insolvency professional agency will have to forward at least 2 names to the Board, 1 month prior to the expiry of the tenure of the existing Managing Director.
Read More:
From Withdrawal to Creditor Control: Key Shifts under the IBC Amendment Act, 2026
IBBI introduces Non-submissions of Repayment Plan strengthening Insolvency Resolution Process
[IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2026, dt. 13 May 2026]
