Top 5 Facts to Know about Insolvency and Bankruptcy Board Meetings
Fact #1: At Least 4 meetings are to be done in a year and 1 meeting in a quarter.
Fact #2: The Chairperson (or one nominated by Chairperson) heads the meeting
Fact #3: Any 3 members are required to start the meeting
Fact #4: The meeting will be held at time and place (generally at headquarters) mentioned in the notice
Fact #5: If the chairperson is absent, any other member chosen shall take over the meeting
Whose on the Board?
The Board shall consist of following members:
Three members from amongst the officers of the Central Government
One nominated by the RBI of India
Five other members to be nominated by the Central Government
Other than the ex-officio member, the appointment of the Board shall be made after the recommendation of:
Secretary to the Government of India
Chairperson of the Insolvency and Bankruptcy Board of India
Three experts of repute from the field of finance, law, management, insolvency and related subjects
The term of office of the Chairperson and members (other than ex officio members) shall be 5 years or till they attain the age of 65 years, whichever earlier
Recent Case Laws
IL&FS CASE : Resolution Professionals Appointed to rectify default and rescue the company .
The present situation of IL&FS is similar to “Lehman Brothers crisis” that happened way back in 2008.In the present time what has happened in IL&FS cannot be undone but the need of the hour is to find recourse for IL&FS. The biggest challenge for IL&FS as of now is to raise funds quickly to avoid any further debt defaults.The new board of IL&FS elected Arpwood capital and JM Financial Ltd. as Financial and Transaction Advisor (FTAs) along with Alvarez &Marsal (A&M) as restructuring advisor. These advisors shall formulate and execute a resolution plan for debt burdened IL&FS. To know more about the case follow the below weblink : https://www.muds.co.in/ilfs-case-unveiling-curtains/
Popular Words You Should Know
Quorum: 5 members ( if the Board has 8 or more members) and 3 members ( if the Board has less than 8 members) shall constitute the quorum.
Minutes of the meeting: Minutes of all the proceedings should be maintained in books which specifies lose leaves, duly numbered etc.
Secretary: A senior officer shall be nominated as the Secretary to keep the custody of common seal, register of attendance, agenda, minutes book, and other records. He shall also be responsible to arrange meetings, records minutes and to ensure all regulations are followed.
“In order to smoothly function the Board may constitute of advisory and executive committees or such other committees, as required, consisting of a Chairperson and such other members specified by regulations”
- Adv. Sharlee Garg
What are Advisory and Executive Committees?
The Board may consist of Advisory Committee on :
Corporate Insolvency and Liquidation
Individual Insolvency and Bankruptcy etc.
Advisory Committee comprises of:
Professional Members: Eminent Academicians or practitioners in the relevant area
General Members: Eminent Citizens not having direct involvement of interest in the area.
“The Board takes the help of Advisory Committee on any related issue and shall advise and at the same time Committee also provides professional support on any related issue as and when asked by the Board” - Shweta Gupta, Founder, and CEO, MUDS
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