The banking industry has sought exemption from shareholder approval for change in capital structure or sale of assets or company during insolvency proceedings.
Indian Banks’ Association (IBA), the umbrella body of banks, has sought the intervention of Insolvency & Bankruptcy Board of India (IBBI) to address a number of issues that may crop up while carrying out Corporate Insolvency Resolution Plan (CIRP).
It said would be difficult to get if a large portion of shareholding in private or public limited company are held by a promoter, promoter group or associates.
The association made a strong case for deep examination of the issues by the Ministry of Company Affairs, and if required, it should be exempted from shareholder…
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