Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Code, 2016
May 2016
Executive summary
Challenges in the existing
framework
2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Proposed ecosystem
Adjudicating Authority
Insolvency and
Bankruptcy Board of
India (IB Board) would
consist of members
including representatives
from MCA, MoF, Reserve
Bank of India and would
regulate the appointment
of insolvency professionals,
information utilities and
promote transparency in
governance. The board will
also make model bye laws
for regulating insolvency
professionals.
Information utilities
Insolvency professional
agency is the body that
would admit insolvency
professionals as members
and develop a code of
conduct and promote
transparency and best
practices in governance.
Insolvency
professionals are
licensed professionals
appointed by insolvency
professional agencies who
would take on the roles
of resolution professional
or liquidator/ bankruptcy
trustee in an insolvency
resolution process.
Source: KPMG in Indias analysis of the Insolvency and Bankruptcy Code, 2016
Source: KPMG in Indias analysis of the Insolvency and Bankruptcy Code, 2016
2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Adjudication authority
2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Moratorium
Creditor Committee
Powers of RP
The management of the affairs of the corporate debtor
shall be vested on the interim resolution professional.
The powers of the board of directors shall be suspended
and be exercised by the interim resolution professional.
The officers and managers of the corporate debtor shall
report to the interim resolution professional and provide
access to such documents and records of the corporate
debtor as may be demanded by the interim resolution
professional.
Management of the company needs to support the RP in
performing his/her duties.
The interim resolution professional shall have immunity
from criminal prosecution and any other liability for
anything done or omitted to be done in good faith in the
discharge of his/her duties as an insolvency resolution
professional under the Code.
Duties of RP
To collect all information relating to the assets, finances
and operations of the corporate debtor for determining its
financial position
To receive and collate all the claims submitted by creditors
to him/her
To constitute a committee of creditors
Take custody of assets and monitor the assets.
2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Liquidation
Avoidance transactions
Distribution of assets
The proceeds from the sale of the liquidation assets shall
be distributed in the following order of priority:
-- the insolvency resolution process costs and the
liquidation costs to be paid in full
-- claims of secured creditors and workmen dues (capped
up to 24 months prior to liquidation) would rank pari
passu
-- employees salaries other than workmen (capped up to
12 months prior to the commencement of liquidation)
-- financial debt owed to unsecured creditors
-- any amount due to the relevant State Government or
the Government of India ( capped at 2 years before
commencement of liquidation) and unpaid dues to
secured creditors after enforcement of security interest
would rank pari passu
Voluntary liquidation
The directors of the Company can initiate the voluntary
liquidation of the Company upon filing a petition for the
voluntary winding up along with affidavit of solvency of the
Company.
The petition needs to be approved by a special resolution
in a general meeting of members along with two thirds
majority of creditors in value of the debt held by such
creditors.
2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Way forwardLiquidation
Passage of the Code
Training of IPs
Conclusion
Overall this legislation is a huge step towards
the ease of doing business in India and has
the potential to bring business practices in
India closer to more developed markets over
the long term.
Vikram Hosangady
Varun Gupta
Shailen Shah
Partner
Deal Advisory
T: +91 22 3090 2132
E: varungupta1@kpmg.com
Director
Deal Advisory
T: +91 22 3090 2041
E: shailenshah@kpmg.com
KPMG.com/in
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affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
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