The Insolvency Regulator, Insolvency and Bankruptcy Board of India (IBBI) has standardised meetings norms of the disciplinary committee (DC) and appellate panel (AP) of Registered Valuers Organisations (RVOs).
The standardisation has come up with a series of directions to be followed by the DC and AP of the RVO while conducting their meetings including stipulation that meetings be held only if there is an agenda and preferably through a video conferencing facility, keeping in view the current pandemic.
It has been observed that the RVOs have been following different practices in conducting the meetings of the DC and AP.
Accordingly, the Board advises the RVOs to ensure the various aspects while conducting the meetings of the DC and AP of the RVOs.
Firstly, meetings of the DC and AP should be held only if there is an agenda for the meeting. Accordingly, the meeting of the DC will be held for considering the issue or disposal of a show cause notice (SCN) to a member. The meeting of an AP would be held to consider the issues raised in the appeal filed by the aggrieved against the order passed by the DC.
Secondly, facility, keeping in view the current pandemic.
Thirdly, one week’s notice is to be given to all the members for holding any meeting and notice for the same is to be sent through email.
Fourthly, the minutes shall be signed by the members of the committee present during the meeting.
Fifthly, the quorum for the meeting should be as provided in the Bye laws of the RVO but should be a minimum of two members including the Chairperson.
Sixthly, if a member of the committee is related to the person against whom action is proposed by the DC or AP, or there is any other issue of conflict of interest, the member shall recuse himself/herself from the proceedings.
The Board while imposing other conditions said that the governing Board of the RVO shall be the sole authority for fixing the amount of sitting fee to be paid to the members of the DC and AP, but it cannot be less than the amount payable to the independent director as sitting fee.
“In case, any of the members who has been nominated by the IBBI does not agree to the amount of fee proposed to be paid, then RVO shall bring this fact to the notice of IBBI within seven days, upon which another person will be nominated,” the IBBI said.
The tenure of IBBI’s nominee shall, in general, be for two years from the date of appointment, unless decided otherwise by the IBBI.
The move of IBBI is a worthy step regarding the conduct of the meeting of DC and AP because it will be held only if there is an agenda for the meeting.
It brings uniformity in the amount of sitting fees to be paid to the members of the DC and AP of the RVOs.Subscribe Taxscan AdFree to view the Judgment