The Institute of Chartered Accountants of India ( ICAI ) has recently rolled out a comprehensive handbook in February 2024, aimed at providing detailed guidance to insolvency professionals navigating the voluntary liquidation process under the Insolvency and Bankruptcy Code, 2016 ( IBC ).
This strategic move comes in the wake of the IBC’s six amendments, reflecting a commitment to addressing implementation challenges and adapting to evolving requirements. The IBC facilitates solvent corporations to voluntarily undergo liquidation within the framework of its provisions, with supervision from a designated insolvency professional.
The handbook, an invaluable resource for professionals involved in insolvency proceedings, covers a range of crucial topics, including but not limited to:
1. Voluntary Liquidation by Corporate Entities
2. Step-by-Step Process for Voluntary Liquidation
3. Conditions and Procedural Requirements for Voluntary Liquidation
4. Determination of Quantum of Claims
5. Verification of Claims
6. Realization of Assets
7. Distribution of Proceeds and Return of Funds
8. Detection of Fraud or Insolvency
9. Completion of Liquidation
10. Company’s Declaration of Liquidation Status
11. Admissibility of Company Documents as Evidence
12. Tribunal’s Authority to Declare Dissolution Void
13. Non-Impediment of Investigation Proceedings during Voluntary Winding Up
14. Documents required for Voluntary Liquidation Process – A checklist
The handbook, structured as a practical guide, serves as a valuable tool for insolvency professionals, offering insights into the entire voluntary liquidation process. With its comprehensive checklist of documents required for the voluntary liquidation process, this guide is set to become an indispensable resource for industry practitioners navigating the complex landscape of corporate insolvency.
As the IBC continues to play a pivotal role in reshaping India’s economic landscape, this latest initiative by the ICAI reinforces its commitment to providing practitioners with the tools and knowledge needed to navigate the evolving insolvency landscape seamlessly.
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