The Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022

Sep 17, 2022 | by TeamLease RegTech Legal Research Team

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Finance & Taxation ComplianceThe Insolvency and Bankruptcy Board Of India (IBBI) on September 16, 2022, notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022 further to amend the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, 

They shall come into force on the date of their publication in the Official Gazette. 

The following amendments have been made-

•In regulation 3, after sub-regulation (4), the following sub-regulation shall be inserted-

“(5) The declaration under sub-regulation (1)(a) or under section 59(3)(a) shall provide that the corporate person has made provision for the preservation of its records after its dissolution.” 

•In the principal regulations, for regulation 41, the following regulation shall be substituted-

 “41. Preservation of records.

(1) The liquidator shall preserve copies of all such records which are required to give a complete account of the voluntary liquidation process.

(2) Without prejudice to the generality of the obligations under sub-regulation (1), the liquidator shall preserve copies of records relating to or forming the basis of:-

(a) his appointment as a liquidator, including the terms of the appointment.

(b) handing over / taking over the assignment.

(c) initiation of the voluntary liquidation process.

(d) public announcement.

(e) claims, verification of claims, and list of stakeholders.

(f) engagement of professionals, registered valuers, etc. including work done, reports, etc., submitted.

(g) all filings with the Adjudicating Authority, Appellate Authority, High Courts, Supreme Court, whichever applicable, and their orders.

(h) statutory filings with Board and insolvency professional agencies.

(i) correspondence during the voluntary liquidation process.

(j) cost of the voluntary liquidation process.

(k) all reports, registers, documents such as a preliminary report, annual status report, final report prior to dissolution, various registers and books, etc. mentioned in Regulations 8 and 10 of principal regulations.

(l) any other records are required to give a complete account of the process.

  •  The liquidator shall preserve: 

(a) the electronic copy of all records (physical and electronic) for a minimum period of eight years. 

(b) a physical copy of records for a minimum period of three years.

from the date of dissolution of the corporate person, before the Board, the Adjudicating Authority, Appellate Authority, or any Court, whichever is later. 

•In case of replacement of the liquidator during the process, the outgoing liquidator shall hand over the records under sub-regulation (1) and (2) to the new liquidator. 

•The liquidator shall preserve the records at a secure place and shall be obliged to produce records as may be required under the Code and the principal regulations.

•The liquidator shall, along with the application filed under sub-section, (7) of section 59 to the Adjudicating Authority, provide the details and manner of preservation of records under sub-regulation (1) and (2).

[Notification No. IBBI/2022-23/GN/REG095]


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