The Insolvency and Bankruptcy Board has invited public comments on the draft regulations for voluntary liquidation, rules that will apply to a corporate person seeking to voluntarily wind up their operations.
The Ministry of Corporate Affairs had set up four working groups to ease the implementation of the Insolvency and Bankruptcy Code 2016. The working group tasked with deliberating and submitting its recommendations on the rules and regulations relating to the insolvency process has submitted its draft regulations for the Voluntary Liquidation of Corporate Persons.
“A corporate person who has not committed any default may initiate voluntary liquidation subject to certain conditions,” according to a government statement. “It has been decided to invite public comments on the draft regulations. Accordingly, comments on each provision of the draft regulations are invited by March 8, 2017.”
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Prior to this, the Insolvency and Bankruptcy Board had, after seeking public comment, notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.