November 29, 2019
Summary of Circulars and Notifications issued by MCA and IBBI dated 28/11/2019 and 27/11/2019 are listed below:
1. Extension of time for filing of Financial Statements for the FY 2018-19 for companies falling under UT of J&K and Ladakh jurisdiction
Due date for filing of e-Forms AOC-4, AOC-4(CFS), AOC-4(XBRL), and MGT-7 by the companies falling under the jurisdiction of Union Territory of Jammu and Kashmir and Ladakh, has been extended from 30/11/2019 (for e-Forms AOC-4, AOC-4(CFS), AOC-4(XBRL) and 31/12/2019 (for e-form MGT-7) to 31/01/2020 without any levy of additional fee.
2. Due date for submission of Form PAS-6 on Half-yearly Reconciliation of Share Capital Audit Report by unlisted companies
Due date for filing e-Form half-yearly return PAS-6 on reconciliation of share capital audit report under Rule 9A(8) of the Companies (Prospectus and Allotment of Securities) Rules, 2014, by unlisted companies for the half year ended 30/09/2019 has been extended from 29/11/2019 to 60 days from the date of deployment of the said form in MCA website.
3. IBBI amends Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016Through this notification,following key provisions are amended in the aforesaid Regulation:·
- Guidelines for Voting by Authorised Representative, acting on behalf of Financial Creditors is inserted.
- Insolvency Resolution Plan to consider “restructuring of the corporate debtor, by way of merger, amalgamation and demerger”, as one of the possible resolution measures in maximizing the value of assets of the Corporate Debtor while devising its resolution plan.
- Payment under Resolution Plan shall be paid on priority, only next to Operational Creditor, to Financial Creditors, who are eligible to vote under Section 21(2) of the IB Code, 2016 and didn’t vote in favour of the resolution plan over the Financial Creditors who voted in favour of the resolution plan.
- Timeline and penalty for delayed filing of forms IP-1 (Pre-assignment), CIRP 1 (From Commencement of CIRP till Issue of Public Announcement), CIRP 2 (From Public Announcement till confirmation / replacement of IRP), CIRP 3 (From Appointment of RP till issue of Information Memorandum (IM) to Members of CoC), CIRP 4 (From Issue of IM till issue of RFRP), CIRP 5(From Issue of RFRP till completion of CIRP), CIRP 6 (Event Specific filings specified in the said notification under IBC, 2016) shall be filed by the insolvency professional or interim resolution professional or resolution professional, as the case may be , in IBBI’s electronic platform.
- Formats of Form B (Proof of Claim by Operational Creditors except Workmen and Employees) and Form H (Compliance Certificate)have been revised as specified in the said notification.4. Corrigendum to Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules,2019.As per this Corrigendum, words “Financial Creditor” are replaced with “Appropriate Regulator” in Part-IV(Particulars of Default) of Form 1 of the said rule dealing with Application by Appropriate Regulator to Initiate Insolvency Resolution Process under the Code.
5. Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2019
This Guideline replaces ‘the Insolvency Professionals to act as Interim Resolution Professionals and Liquidators (Recommendation) Guidelines, 2019’ dated 14th May, 2019 and shall be effective from 1st January, 2020.
The revised guidelines intend to avoid administrative delays from the Insolvency Board in recommending the name of Insolvency Professional (IP) to Adjudicating Authority to be appointed as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees by providing for setting up a Panel of IPs.
This panel will be formed by the Board based on the expression of interest submitted by IPs in Form A, and have a validity of six months, after which a new panel will be constituted. The Adjudicating Authority may pick up any name for appointment from the Panel, where eligible IPs will be selected based on their score according to the volume of their ongoing assignment.