Act 2016
Insolvency and Bankruptcy Code, 2016
Issued by Insolvency and Bankruptcy Board of India
Effective: 28 May 2016
Plain-English summary
The Insolvency and Bankruptcy Code (IBC), 2016 continues to be a complete and operative law in India that serves as the highest and time-bound law that addresses restructurings and liquidations of troubled companies and individuals in the country. Working on the basis of a rigorous ₹1 crore default trigger, this code denies operating authority to the defaulting management and puts the decision in the hands of the independent Insolvency Professional, who in turn works under the guidance of the Committee of Creditors. The whole process of Corporate Insolvency Resolution is limited to a statutory period of 330 days, failing which the company is automatically forced into liquidation.
Who it applies to
Banking · NBFC / Non-bank Lending · Corporates (Listed)
Topics
Prudential & Capital Corporate Governance
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