Summary of the notifications issued by IBBI on 13/09/2022
IBBI prescribes minimum fees and performance incentive for Interim Resolution Professionals(IRPs)/Resolution Professionals(RPs) under CIRP Regulations
IBBI has notified the defined fee structure payable to IRPs and RPs who are appointed on or after 1st October 2022. It constitutes-
1. Minimum fixed fee payable every month, based on the quantum of claims admitted, starting from Rs. 1 lakh to a maximum of Rs. 5 lakhs. This shall be paid till such period as prescribed in the schedule. The Corporate Debtor or the committee may also decide to fix higher amount of fee for the reasons to be recorded, taking into consideration market factors such as size and scale of business operations etc.;
2. Performance linked incentive:
- performance-linked incentive for timely submission of the resolution plan, which may range from 0.50% to 1% of the realisable value;
- performance-linked incentive fee for value maximisation, in cases where the realisable value is more than the liquidation value and a sum of 1% on the difference shall be paid as the incentive towards value maximisation.
- It is to be noted that the performance-linked incentive shall not exceed Rs 5 Crores.
IBBI amends Code of Conduct guidelines of Insolvency Professionals(IPs)
Through this notification, IBBI has amended the code of conduct to be abided by an IP, requiring him/her not to accept /share any fees or charges from any professional and/or support service provider who are appointed under the resolution/liquidation/bankruptcy processes.