ICAI Permits CAs to act as Insolvency Professional under the Insolvency and Bankruptcy Code, 2016 [Read Announcement]

Insolvency - ICAI - Taxscan

The Institute of Chartered Accountants of India (ICAI), recently made an announcement permitting its members to act as Insolvency Professional under the Insolvency and Bankruptcy Code, 2016 and related matters.

The Institute, in connection with this, has decided to amend the provisions of section 2(2)(iv) so as to include the words “acting as Insolvency Professional” under Management Consultancy Services.

The announcement made by V. Sagar, Secretary of ICAI, said that “thus members enrolled as Professional under the Insolvency and Bankruptcy Code, 2016 can render services under the said Code either individually or as an entity. Such members may also become a full time director of a company registered as Professional Entity in compliance with Council guidelines for Management Consultancy Services”.

Those members enrolled as Insolvency professional be allowed to charge fee as a percentage of recovery/assets for the services rendered either individually or as an entity under Bankruptcy Code, 2016 and rules made thereunder.

The Council also released certain clarifications in relation to holding COP and acting as a Professional.

Read the full text of the Announcement below.

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