Insolvency and Bankruptcy Board of India vide notification dated 14 January has issued the Insolvency and Bankruptcy Board of India (Model Bye- Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2021. The amendment provides that a director shall disclose any order of any authority that affects his character or reputation, to the insolvency professional agency, within one week of issue of such order. The copy of the order shall also be placed forthwith on the website of the insolvency professional agency.
It is also provided that an insolvency professional agency shall designate or appoint a compliance officer who shall be responsible for ensuring compliance with the provisions of the Code and regulations, circulars, guidelines, and directions. The compliance officer shall, immediately and independently, report to the Board any noncompliance laws. The compliance officer shall submit a compliance certificate to the Board annually, verifying that the insolvency professional agency has complied with the laws.
The annual compliance certificate shall also be signed by the managing director of the insolvency professional agency. The Governing Board shall appoint or remove the compliance officer only by means of a resolution passed in its meeting.