IBBI amends norms for the resolution process for the corporate person; now RP to place proposal in a meeting if represented by 33% voting

Notification No: F. No. IBBI/2021-22/GN/REG/080, Dated 09-02-2022

IBBI amends the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Regulations 13 has been amended to allow RP to place proposals made by members before COC representing at least 33% of the voting rights. A new Regulation 39A has been added which mandates preservations of electronic copies of all records for a minimum period of 8 years and physical copies for 3 years from the date of completion of the CIRP by the IRP/RP.

The interim resolution professional or the resolution professional, (as the case may be), shall preserve copies of records relating to the following:

(a) his appointment as IRP or RP, including terms of appointment;

(b) handing over / taking over of the assignment;

(c) admission of the corporate debtor into CIRP;

(d) public announcement;

(e) the constitution of committee and meetings of the committee;

(f) claims, verification of claims, and list of creditors;

(g) engagement of professionals, registered valuers, and insolvency professional entity, including work done, reports etc., submitted by them;

(h) information memorandum;

(i) all filings with the Adjudicating Authority, Appellate Authority, and their orders;

(j) invitation, consideration, and approval of the resolution plan;

(k) statutory filings with Board and insolvency professional agencies;

(l) correspondence during the corporate insolvency resolution process;

(m) insolvency resolution process cost; and

(n) preferential, undervalued, extortionate credit transactions or fraudulent or wrongful trading.

Regulation 39A provides that the interim resolution professional or the resolution professional shall have to preserve the records at a secure place and shall be obliged to produce records as may be required under the Code and the Regulations.

The records referred to in this regulation include records about the period of a corporate insolvency resolution process during which the interim resolution professional or the resolution professional acted as such, irrespective of the fact that he did not take up the assignment from its commencement or continue the assignment till its conclusion.

The internal auditor shall submit its report to the Audit Committees of AMC and the Board of AMC. The Audit Committee of AMC shall forward their observations on the internal audit report, if any, to the Trustees.

In addition to the above responsibilities, AMC Board from time to time may also assign such other responsibilities to the Audit Committee, as deemed fit.

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