Summary of the notification issued by IBBI on 28/09/2022
IBBI notifies additional rules for IPEs which intend to get appointed as IPs under Insolvency Professionals Regulations
Key highlights of the amendment are:
1. Eligibility criteria for an Insolvency Professional Entity (IPE)– No IPE shall be eligible to be registered as an insolvency professional, if the entity and/or any of its partner or director, as the case may be, is not fit and proper person, as prescribed under the Regulations.
2. Application for certificate of registration: IPE, desirous of being appointed as an IP, is required to make an application to the Board in Form AA, whose format is prescribed, along with a nonrefundable fee of Rs. 2 lakhs.
3. Pre-requisites for registration as an IP: An IPE shall allow only a partner or director, as the case may be, who is an insolvency professional and holds a valid authorisation for assignment to sign and act on behalf of it.
4. In case an IPE is a Company, then in addition to holding the majority of the equity shares, its directors (who are the IPs) shall also hold majority of voting rights.
5. Where an IPE is enrolled with the Insolvency Professional Agency(IPA), in addition to intimating the Board, it shall also intimate the IPA on Appointment/cessation of its Directors/Partners, to update its Register of Professional Members.
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