Constitution of committee on law relating to insolvency of companies - ORDER [F. NO. 1/13/99-CL-V] - Companies Law

ORDER [F. NO. 1/13/99-CL-V] DATED 22-10-1999, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS Subject:- Constitution of committee on law relating to insolvency of companies 1. The Government has decided to constitute a Committee consisting of experts to examine the existing law relating to winding up proceedings of companies in order to re-model it in line with the latest developments and innovations in the corporate law and governance and to suggest reforms in the procedure at various stages followed in the insolvency proceedings of companies to avoid unnecessary delays in tune with the international practice in this field. 2. This Committee would examine and make recommendations with regard to ( a ) the desirability of changes in existing law relating to winding up of companies so as to achieve more transparency and avoid delays in the final liquidation of the companies; ( b ) the mechanism through which the management of companies will be conducted after the winding up of order is issued and the authority which will supervise timely completion of proceedings; ( c ) the rules of winding up and adjudication of insolvency of companies; ( d ) the manner in which the assets of the companies are brought to sale and the proceeds are distributed efficiently; and ( e ) a self-contained note on winding up of companies having regard to the Sick Industrial Companies (Special Provisions) Act, 1985 and the Securities Contracts (Regulation) Act, 1956 with a view to creating confidence in the mind of investors, creditors, labour and other shareholders. 3. The Committee will consist of ( 1 ) Shri Justice K. S. Paripoornan, retired Judge of Supreme Court Chairman ( 2 ) Shri S. Ramaiah, former Secretary, Legislative Department Member ( 3 ) Shri Subodh Bhargava, nominee of CII Member ( 4 ) Prof. C.G. Raghavan, former Dean, Professor and Head of the Department of Law, Nagpur University Member ( 5 ) Shri A.V. Sambhashiva Rao, Advocate, Vice-President, All India Bhartiya Majdoor Sangh Member ( 6 ) Shri V.K. Bhasin, Legislative Counsel Member ( 7 ) Shri G.M. Ramamurthy, Chief General Manager (Legal), IDBI Member ( 8 ) Shri U.P. Mathur, Advocate Member ( 9 ) Shri Shardul Shroff, Advocate, Delhi Member ( 10 ) Shri S.B. Mathur, Director (Inspection Investigation), Department of Company Affairs Member/ Secretary 4. The Committee would function under the Chairman and would devise its own procedure of working under guidance of Chairman. The Committee may consult other experts in the field as may be considered necessary. The Committee will also consult the Law Commission and incorporate their views in the report to be submitted to the Government. 5. The Committee will submit its report within a period of three months from the date of its first meeting. 6. Secretariat assistance to the Committee will be provided by Department of Company Affairs.