In India, the legal and institutional machinery for dealing with
debt default has not been in line with global standards. The existing laws
either don’t have desired outcomes or are almost century old. This has hampered
the confidence of the lender. Therefore the need was felt to consolidate
and amend law relating to insolvency and consequently the Parliament passed
Insolvency and Bankruptcy Code, 2016
The Code aims to promote entrepreneurship, availability of
credit and balance the interest of all the stakeholders and to establish
Insolvency and Bankruptcy Board of India and for matters connected therewith.
Ministry of Corporate Affairs vide notification dated 5 August,
2016 has made section 188 to 194 of Insolvency and Bankruptcy Code, 2016 (both
inclusive, provisions relate to Establishment/ incorporation/
constitution of Insolvency and Bankruptcy Board, Powers of Chairman, Meetings
of Board, Vacancies) effective from 5 August, 2016
No comments:
Post a Comment