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Declaration must provide that the corporate person has made provision for preservation of its records after its dissolution vide IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022

IBBI

IBBI

The Insolvency and Bankruptcy Board of India has notified IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022 to amend the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. 


The amendment inserts a new clause in Regulation 3 dealing with Initiation of Liquidation providing that t
he declaration under sub-regulation (1)(a) or under section 59(3)(a) shall provide that the corporate person has made provision for preservation of its records after its dissolution.”

The amendment also substitutes Regulation 41 with the following:

Preservation of records.
(1) The liquidator shall preserve copies of all such records which are required to give a complete account of the voluntary liquidation process.

(2) Without prejudice to the generality of the obligations under sub-regulation (1), the liquidator shall preserve copies of records relating to or forming the basis of:-

(a) his appointment as liquidator, including the terms of appointment;
(b) handing over / taking over of the assignment;

(c) initiation of voluntary liquidation process;

(d) public announcement;

(e) claims, verification of claims, and list of stakeholders;

(f) engagement of professionals, registered valuers, etc. including work done, reports etc., submitted by them;

(g) all filings with the Adjudicating Authority, Appellate Authority, High Courts, Supreme Court, whichever applicable and their orders;

(h) statutory filings with Board and insolvency professional agencies;

(i) correspondence during the voluntary liquidation process;

(j) cost of voluntary liquidation process;

(k) all reports, registers, documents such as preliminary report, annual status report, final report prior to dissolution, various registers and books, etc. mentioned in Regulation 8 and 10 of
principal regulations; and
(l) any other records, which is required to give a complete account of the process.

(3) The liquidator shall preserve:
(a) electronic copy of all records (physical and electronic) for a minimum period of eight years; and

(b) a physical copy of records for a minimum period of three years;

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