Bill to amend insolvency law introduced in LS
Tribune News Service
New Delhi, December 12
Finance Minister Nirmala Sitharaman today introduced the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 in the Lok Sabha.
The Bill was approved by the Union Cabinet on Wednesday. Amendments in the law seek to remove bottlenecks and streamline the corporate insolvency resolution process, wherein successful bidders will be ring-fenced from any risk of criminal proceedings for offences committed by previous promoters of companies concerned.
The Insolvency and Bankruptcy Code, which came into force in 2016, has already been amended thrice. The latest changes pertain to various sections and introduction of a new section.
The amendment includes provision to prevent criminal proceedings against offences committed by previous promoters of a company.
The amendments to the Insolvency and Bankruptcy Code (IBC) are aimed at removing certain difficulties being faced during insolvency resolution process.
New section inserted
- The IBC, which came into force in 2016, has already been amended thrice. The latest changes pertain to various sections and introduction of a new section
- The amendments to the Insolvency and Bankruptcy Code are aimed at removing certain difficulties being faced during insolvency resolution process to realise the objects of the Code and to further ease doing of business
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