The Insolvency and Bankruptcy Board of India (IBBI) was constituted on October 01, 2016, under the Indian Bankruptcy Code (IBC). Thus, the IBC consolidates and lends laws about insolvency, while the IBBI seeks to regulate professional bodies dealing with such issues.
Constitution of the Board:
The IBBI is constituted of members appointed by the central government. The board consists of the following:
a) Chairperson: The head of the board.
b) Three members appointed from the central government’s office should hold a rank not below that of a general officer. Each member should be from the Ministry of Finance and Law.
c) One member appointed by the Reserve Bank of India (RBI).
d) Out of the five members appointed by the central government, three should be whole-time members.
The members approved by the board of directors may not have pending charges over offences, but they must be well conversant with solving cases related to insolvency and bankruptcy. They should also be experienced in professions such as law, accounting and economics.
General Functions of the Board:
The board is entrusted with the following duties, as specified by the central government:
a) Register, renew, and specify eligibility criteria for appointing members in professional agencies involved in managing insolvency.
b) Regulate the functions of professional agencies and professional entities.
c) Inspect the functions of professional agencies and entities to ensure compliance with the provisions mentioned in the Indian Bankruptcy Code (IBC).
d) Publish records from the orders passed by the entities.
e) Promote best practices and transparency in board governance.
f) Maintain universally accessible websites, enhancing transparency and the board’s reputation globally.
Powers of the Board as Vested under CPC:
The board is empowered with the following powers, as vested under the Civil Procedure Code (CPC) of 1908, while dealing with matters related to:
a) Production or discovery of books of accounts or other documents.
b) Conducting inspections or checking the attendance of persons related to the board.
c) Inspecting documents, books, or files possessed by the members.
d) Issuing commissions for examining documents or witnesses.
Meetings of the Board:
The board conducts meetings according to the Insolvency and Bankruptcy Code guidelines. The board shall meet at least four times a year, one of which must be quarterly in nature. The chairperson presides over the headquarters of New Delhi. In the chairperson’s absence, the members choose a person to preside. All important decisions and amendments are discussed in these meetings.
Conclusion:
The IBBI plays a prominent role in shaping our society by regulating professional agencies and entities resolving insolvency issues and bankruptcy. Its duties include ensuring compliance, promoting transparency, and maintaining the board’s reputation.
