What are the various facets of voluntary liquidation under IBC?
- A corporate person who intends to liquidate it-self voluntarily and has not committed any default may initiate voluntary liquidation proceedings as per section 59 of IBC-2016 read with IBBI (Voluntary Liquidation Process) Regulations, 2017.
- It needs to convene general meeting of members of the company within 4 weeks from declaration for approval of the following;
- Voluntary liquidation shall be approved by the shareholders of the company by passing special resolution,
- Appoint insolvency professional to act as a liquidator.
- In case company owes any debt from any person, it shall be approved by creditors representing 2/3rd in value of the debt of the company within 7 days from the date of shareholder’s approval.
- Once the affairs of the company are being fully wound up, the liquidator shall make an application to the adjudicating authority (i.e. the NCLT) for the dissolution of the corporate person.
- A copy of the NCLT order shall be forwarded to the ROC with which the company is registered, within 14 days from such order.
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