The Insolvency and Bankruptcy Board of India on 7th August 2020 has published the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020.
The Amendment is brought under regulation 4A which deals with choice of authorized representative in which the interim resolution professional shall identify three insolvency professionals who are not his relatives or related parties, having their addresses, as registered with the Board, in the State or Union Territory, as the case may be, which has the highest number of creditors in the class as per their addresses in the records of the corporate debtor, Provided that where such State or Union Territory does not have adequate number of insolvency professionals, the insolvency professionals having addresses in a nearby State or Union Territory, as the case may be, shall be considered.
Under regulation 16A the authorized representative shall circulate the agenda to creditors in a class and may seek their preliminary views on any item in the agenda to enable him to effectively participate in the meeting of the committee, Provided that creditors shall have a time window of at least twelve hours to submit their preliminary views, and the said window opens at least twenty-four hours after the authorized representative seeks preliminary views.
Further, for approval of a regulation plan under Regulation 39, the committee shall, evaluate the resolution plans and record its deliberations on the feasibility and viability of each resolution plan, and vote on all such resolution plans simultaneously.
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