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The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 was introduced in Lok Sabha on July 26, 2021. It amends the Insolvency and Bankruptcy Code, 2016. Insolvency is a situation where individuals or companies are unable to repay their outstanding debt. The Bill replaces the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, which was promulgated on April 4, 2021. The Code provides a time-bound process for resolving the insolvency of corporate debtors (within 330 days) called the corporate insolvency resolution process (CIRP). The debtor himself or its creditors may apply for initiation of CIRP in the event of a default of at least one lakh rupees. Under CIRP, a committee of creditors is constituted to decide on the insolvency resolution. Application for initiating PIRP may be filed in the event of a default of at least one lakh rupees. The central government may increase the threshold of minimum default up to one crore rupees through a notification. During PIRP, the debtor will be provided with a moratorium under which certain actions against the debtor will be prohibited. These include filing or continuation of suits, ex*****on of court orders, or recovery of property. At any time from the PIRP commencement date but before the approval of the resolution plan, the committee of creditors may decide (with at least 66% of the voting shares) to terminate PIRP and instead initiate CIRP.

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MCA has introduced the concept of “small limited liability partnership” in line with the concept of “small company” under the Companies Act, 2013. It is proposed to amend certain sections of the Act so as to convert offenses into civil defaults and to convert the nature of punishment provided in the said sections from fines to monetary penalties. A new section 34A has been inserted to empower the Central Government to prescribe the “Accounting Standards” or “Auditing Standards” for a class or classes of limited liability partnerships. Further, powers under section 39 of the Act relating to “compounding of offenses” is granted to the Regional Director to compound any offense under this Act which is punishable with fine only. A new section 67A empowering the Central Government to establish or designate as many “Special Courts” as may be necessary for the purpose of providing speedy trial of offenses under the Act, has been inserted.

Things you should know before incorporation of your Private Limited Company

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Registration of Private Limited Company – QuickLaw Solutions Registration of Private Limited Company Things you should know before registration of your Private Limited Company Registring a Private Limited Company is not that Complex and it takes 10-15 days to complete the whole process, if all documents are fine. Do you want to get your Private Limited Compan...