The Union Cabinet on 24th
December, 2019 approved a proposal to promulgate an ordinance for the
amendment of the Insolvency and Bankruptcy Code (IBC).The changes protect the
‘going concern status ‘of a company facing insolvency proceedings while
providing protection to last –mile funding in financially distressed sectors.
·
The amendments absolve a
corporate debtor of liability for an offence committed before the commencement
of the corporate insolvency resolution process.
·
The corporate debtor will not be
prosecuted for such an offence from the date the resolution plan has been
approved by the adjudicating authority, if the resolution plan results in the
change in the management or control of the corporate debtor to a person who was
not a promoter or in the management or control of the corporate debtor or a
related party of such a person.
·
The amendments also propose that
the debtor will not be prosecuted if a person with regard to whom the relevant
investigating authority has, on the basis of material in its possession, reason
to believe that he had abetted or conspired for the commission of the offence,
and has submitted a report or a complaint to the relevant statutory authority
or court.
No comments:
Post a Comment