A list of puns related to "Insolvency and Bankruptcy Code, 2016"
Department: Insolvency and Bankruptcy Board of India
Deadline: 31st December
Submission Link: https://lnkd.in/gtQd3Ek
Documents:
IBC 2016 lays the insolvency processes for individuals, companies and partnership firms. The law has brought a significant change in the power-sharing equation between creditors and debtors by giving both of them the power to initiate proceedings against each other.
The legislation is expected to bring the long-awaited respite to the Indian banking industry, plagued with at least Rs. 8.41 lakh crore bad loans.
To avoid losing the control of their business under the IBC, promoters of as many as 2,100 companies have cleared their bank dues of Rs. 83,000cr.
By now, at least 2,434 fresh cases have been filed before NCLT and at least 2,304 other cases seeking the winding-up of companies have been transferred from various high courts.
Of these, 2,750 cases have been disposed of.
Under IBC, the proceeds of a liquidation are distributed in the following order of priority:
Insolvency resolution process, liquidation costs
Workmen' dues pending 24 months, secured creditors
Unpaid dues owed to employees other than workmen for 12 months
Unsecured creditors
Any amount due to the Central Government and the State Government
Any remaining debts/dues
Preference shareholders
Equity shareholders, partners
Suspension of the insolvency and bankruptcy code (IBC) is being extended till March 31, 2021, finance minister Nirmala Sitharaman said at the Bangalore Chamber of Industry and Commerce virtual conference Monday.
“Even the suspension of the IBC has been postponed even further from 25th of December… we've moved to say that it can be up to 31st March 2021,” she said.
Was this even necessary? The code was made simpler in the recent times so that the banks could fast track the proceedings and clear the excess financial stress. With a one year holiday this would only mean banks had to sit up these NPAs for a far greater time than they should. I mean how many loans are there which gets declassified once they have been labeled NPA.
Isn't it creating an unnecessary stress on the banking sector for we know what the NPA crisis did? Are we creating a future crisis for us?
Can someone on here answer a specific question with regards to the IBC changes that were introduced in 2016.
Hypothetical example:
I am a founder of a well known IT company in India which is staring down the bankruptcy barrel. My company is a publicly listed company.Would I as a founder, be held personally liable for any outstanding debt owed by the company?
Bankruptcy laws in other capitalist countries make it clear, that under normal circumstances the founder CANNOT BE held liable for any company related debt.
Does the same apply as per the IBC code? If so, could someone please share official links?
Thanks!
I am in a bankruptcy law class and it lead me to wonder what it was like in other countries. Does anyone have any insight or be able to point me in the direction of Germanys laws and statutes that pertain to this topic? Danke!
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