The Insolvency and Bankruptcy Board of India has notified Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2021 to amend the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 vide notification dated September 30, 2021.
Key amendment constitutes regulation 31A, which deals with the Stakeholders’ consultation committee, has been substituted as follows:
- In regulation 31A for sub-regulation (1), the following sub-regulation shall be substituted:
“(1) The liquidator shall constitute a consultation committee within sixty days from the liquidation commencement date, based on the list of stakeholders prepared under regulation 31, to advise him on matters relating to-
- appointment of professionals and their remuneration under regulation 7;
- sale under regulation 32, including manner of sale, pre-bid qualifications, reserve price, amount of earnest money deposit, and marketing strategy:
Provided that the decision(s) taken by the liquidator prior to the constitution of consultation committee shall be placed before the consultation committee for information in its first meeting.”
- In regulation 31A for sub-regulation (4), the following sub-regulation shall be substituted:
“(4) If the stakeholders of any class fail to nominate their representatives, under sub regulation (3), such representatives shall be selected by a majority of voting share of the class, present and voting.”
- In regulation 31A in sub-regulation (10), in the proviso, after the words “in writing”, the words “and mention it in the next progress report” shall be inserted.
*Tanvi Singh, Editorial Assistant has reported this brief.