The Insolvency and Bankruptcy Board of India vide Notification dated 15th January 2020 has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020 which has made changes to voluntary liquidation process.
The amendment directs the The Board to operate and maintain an Account to be called the Corporate Voluntary Liquidation Account in the Public Accounts of India.
The amendment provides that a Liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon into the Corporate Voluntary Liquidation Account before submission of an application for dissolution of the corporate person.
It also provides a process by which a stakeholder to seek withdrawal from the Corporate Voluntary Liquidation Account.
Further, the liquidator who fails to deposit any amount into the Corporate Voluntary Liquidation Account under this regulation, shall deposit the same along with interest thereon at the rate of 12% per annum from the due date of deposit till the date of deposit. The amount deposited into the Corporate Voluntary Liquidation Account which remains unclaimed or undistributed for a period of 15 years from the date of order of dissolution of the corporate person and any amount of income or interest received or earned in the corporate voluntary liquidation account shall be transferred to the Consolidated Fund of India.
New FORM-G related to “Deposit of Unclaimed Dividends and/or Undistributed Proceeds” and FORM-H which is related to “Withdrawal from Corporate Voluntary Liquidation Account” under Regulation 39(7) of the IBBI (Voluntary Liquidation Process) Regulations, 2017 has been inserted through this amendment.
Click here to read the Notification.
