New Delhi: The Insolvency and Bankruptcy Board of India, or IBBI, on Tuesday sought public comments on draft rules outlining the process that companies can follow for voluntary liquidation under the Insolvency and Bankruptcy Code, 2016.
A company that has not defaulted on loans may initiate voluntary liquidation subject to certain conditions, according to the bankruptcy code. In case of default or debt outstanding, the company should be able to pay it off from the sale of assets.
In case of voluntary liquidation, the law also requires shareholders of the company to pass a special resolution in a general meeting requiring the company to be liquidated voluntarily and appointing an insolvency professional to act as the liquida…
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