Source: The Hindu Business Line, Nov 23, 2016
New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) has come up with three regulations covering insolvency professional agency (IPA) and insolvency professionals. While two regulations relate to IPA, the other one is on insolvency professionals.
The two regulations on IPA provide for the eligibility norms to be a professional member of an IPA and also for eligibility norms to be registered with the IBBI as an IPA.
A company registered under Section 8 of the Companies Act, 2013 with a minimum net worth of ₹10 crore would be eligible to be an IPA, an official release said.
More than half of the directors of its board would have to be independent directors and not more than one fourth of the directors shall be insolvency professionals.The IPA should have membership committee(s), monitoring committee, grievance redressal committee(s), and disciplinary committee(s) for regulation and oversight of professional members.