The Insolvency and Bankruptcy Board of India (IBBI) has notified the IBBI (Model Bye- Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2021.
The notification seeks to amend IBBI (Model Bye- Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020.
In regulation 5, sub-regulation (4A) “A shareholder director shall be an individual, who satisfies the eligibility norms, including experience and qualification, as decided by the Governing Board.” shall be inserted.
In regulation 5 (6), for clause (b), “who has expertise in the field of finance, law, economics, accountancy, valuation, management or insolvency”, the clause shall be substituted.
As per the amendment, a director shall disclose any order of any authority that affects his character or reputation, to the insolvency professional agency, within one week of issue of such order. Provided that a copy of the order shall be placed forthwith on the website of the insolvency professional agency.
The further condition was imposed that such director shall forthwith cease to be a director of the insolvency professional agency where the order disqualifies him to be a director of a company.
The IBBI inserted the provision related to Self-evaluation, which said that the Governing Board shall evaluate its performance in a financial year within three months of the closure of the year, in the manner decided by it. The insolvency professional agency shall publish a report on self-evaluation referred to in sub-regulation (1) on its website.
The Board has also notified the process for appointment of Compliance Officer who shall be responsible for ensuring compliance with the provisions of the Code and regulations, circulars, guidelines, and directions issued thereunder. The compliance officer shall, immediately and independently, report to the Board any non-compliance of the provisions. The compliance officer shall submit a compliance certificate to the Board annually, verifying that the insolvency professional agency has complied with the provisions.
Provided that the annual compliance certificate shall also be signed by the managing director of the insolvency professional agency.
The Governing Board shall appoint or remove the compliance officer only by means of a resolution passed in its meeting, IBBI notified.
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