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TMI BlogVoluntary Liquidation of Corporate Persons [ Section 59 ]X X X X Extracts X X X X X X X X Extracts X X X X ..... section was added to the Companies Act, 2013, namely section 2(94A), which defines the expression winding up as winding up under this Act or liquidation under the IBC. It is also relevant that the enactment of the IBC triggered the removal of provisions of voluntary winding up and winding up on the grounds of inability to pay debts from the Companies Act, 2013. The proceedings relating to these are now under the ambit of the IBC. Liquidation in cases of default in payment or repayment of any debt is not directly possible. For such entities, the emphasis is on resolution, and if the resolution process does not result in an approved resolution plan, a liquidation order is passed by the Adjudicating Authority under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be specified by the [ Section 59(2) of the IBC, 2016 ] The voluntary liquidation of a corporate person under section 59(1) shall meet such conditions and procedural requirements as may be specified by the Board. Conditions of initiation of voluntary liquidation proceedings [ Section 59(3) of the IBC, 2016 Read with Regulation 5 of IBBI (Voluntary Liquidation Process) Regulations, 2017 and Rule 8 of Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 ] Without prejudice to section 59(2), voluntary liquidation proceedings of a corporate person registered as a company shall meet the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company shall be dissolved, as the case may be and appointing an insolvency professional to act as the liquidator: Provided that the company owes any debt to any person, creditors representing two-thirds in value of the debt of the company shall approve the resolution passed under sub-clause (c) within seven days of such resolution. Notification to Registrar of company and the Board [ Section 59(4) of the IBC, 2016 ] The company shall notify the Registrar of Companies and the Board about the resolution under sub-section (3) to liquidate the company within seven days of such resolution or the subsequent approval by the creditors, as the case may be. Commencement of liquidation pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the IBC, 2016 ] A copy of an order under section 59(8) shall within 14 days from the date of such order , be forwarded to the authority with which the corporate person is registered. Preservation of Records [ Regulation 41 of IBBI (Voluntary Liquidation Process) Regulations, 2017 ] The copy of the reports and books of account (physical or electronic) referred to Regulation 8 and Regulation 10 of IBBI (Voluntary Liquidation Process) Regulations, 2017 shall be preserved for at least 8 years after dissolution either with himself or with an information utility. Forms Under Insolvency And Bankruptcy Board Of India (Voluntary Liquidation Process) Regulations 2017 a) Public announcemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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