Alerts & Updates 7th Sep 2018
In a strictly worded circular (available here) issued by the Insolvency and Bankruptcy Board of India (“IBBI”), issued on 16 January 2018, IBBI has put mechanism in place to ensure transparency around appointment of the insolvency professionals (“IPs”) and professionals like registered valuers, accountants, legal and other professionals (“Professionals”) appointed by such IPs involved in conducting the resolution process. Every IP is also required to confirm that appointment of every Professional has been made at arms’ length relationship.
Kind of relationship | Nature of relationship |
A | Where the IP or the Professional, as the case may be, has derived 5% or more of his / its gross revenue in a year from professional services to the related party. |
B | Where the IP or the Professional, as the case may be, is a shareholder, director, key managerial personnel or partner of the related party. |
C | Where a relative (spouse, parents, parents of spouse, sibling of self and spouse, and children) of the IP or the Professional, as the case may be, has a relationship of kind A or B with the related party. |
D | Where the IP or the Professional, as the case may be, is a partner or director of a company, firm or LLP, such as, an IPA or registered valuer, the relationship of kind A, B or C of every partner or director of such company, firm or LLP with the related party. |
Disclosures by IP of relationship with following: | Disclosures by each Professional of relationship with following: |
|
|
Please feel free to reach us for views / questions / queries at ibcupdate@elp-in.com.
As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.