The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020. These Amendment Regulations come into force from 5th August 2020. The said Regulations seek to amend the IBBI (Voluntary Liquidation Process) Regulations, 2017.
Therefore, this Amendment Regulation states that a corporate person must appoint an insolvency professional as liquidator. Such liquidator may be replaced with another insolvency professional as liquidator. However, this replacement must be made through an appointment initiated by a resolution of members or partners, or contributories, as the case may be.
The Resolution must contain the terms and conditions of appointment of the liquidator, including the remuneration that is payable to him. Furthermore, the insolvency professional must intimate the IIBI of his appointment as liquidator, within three days of such appointment.