Once the Insolvency and Bankruptcy Code, 2015, comes into effect, a company that has more than 100 workers can initiate voluntary liquidation proceedings, TK Viswanathan, the chairman of the committee that drafted the legislation and former law secretary, said on Monday.
Viswanathan added that as long as the company repaid its dues to lenders and complied with other statutory obligations, it could ask for its operations to be wound up.
The existing law requires companies employing more than 100 workers to take permission from the relevant government authorities to shut down a venture.
The NDA government has been attempting to frame a better exit policy for industry by allowing companies that employ less than 300 workers to s…
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