1. Will take action against firms such as Liberty House said the NCLAT
The National Company Law Appellate Tribunal (NCLAT) on Tuesday came down hard on companies such as Liberty House Group, which successfully bid for debt-ridden firms under the corporate insolvency resolution process but later withdrew citing one reason or the other. “We will decide what action needs be taken against such companies,” said a two-member Bench led by Chairperson Justice S J Mukhopadhaya.
2. INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (VOLUNTARY LIQUIDATION PROCESS) (AMENDMENT) REGULATIONS, 2019
The sections 59 and 208 read with clause (t) of sub-section (1) of section 196 and section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to amend the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, namely: –
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2019.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (hereinafter referred to as the principal regulations), in regulation 6, in sub-regulation (1), in the Explanation, in clause (c), in sub-clause (i), for the words “company secretaries”, the words “secretarial auditors” shall be substituted.
3. In the principal regulations, in Schedule I, in Form A, for “[insert the date falling thirty days after the liquidation commencement date]”, the following shall be substituted, namely:- “[insert the date falling thirty days from the liquidation commencement date]”.
Impact of such amendments
(a) The word “company secretaries” have been replaced with “secretarial auditors” as one of the duties of the company secretaries is secretarial audit. Secretarial Audit is an audit to check compliance of various legislations including the Companies Act and other corporate and economic laws applicable to the company. Secretarial Audit helps to detect the instances of non-compliance and facilitates taking corrective measures.
(b) Insertion of the date falling thirty days from the liquidation commencement date and not after the liquidation commencement date as it is difficult to calculate the thirty days unless specific date is mentioned.
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