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Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018
June 19 , 2018
2142 days
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- President Ram Nath Kovind has assented to the promulgation of Insolvency and Bankruptcy Code (Amendment) Ordinance.
- This ordinance makes some fine-tuning mechanisms in the Insolvency and Bankruptcy Code, 2016.
- This ordinance brings some specific changes affecting mainly real estate and financial sectors and key changes are,
- Homebuyers Recognized as Financial Creditors
- Special Provisions for MSME
- Withdrawal of Insolvency Application
- After this amendment, the IBC law will recognize the homebuyers as financial creditors, giving them due representation in the Committee of Creditors (CoC). Thus, now home buyers will be an integral part of the decision making process.
- Now, the promoters of MSMEs are allowed to bid for their companies as long as they are not wilful defaulters and don’t attract any other related disqualification.
- The ordinance permits the withdrawal of the insolvency applications only if it is approved by 90% vote share of the CoC.
- Further, the CoC voting threshold has been brought down to 66 percent from 75 percent for all major decisions.
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