Corporate Updates – 03-04-2017


IBBI has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2016 which shall come into effect from 1 st April, 2017. The regulations provide the process from initiation of voluntary liquidation of a companies, limited liability partnerships and any other persons incorporated with limited liability – till its dissolution. A corporate person may initiate a voluntary liquidation proceeding if majority of the directors or designated partners of the corporate person make a declaration to the effect that it has no debt or it will be able to pay its debts in full from the proceeds of the assets to be sold under the proposed liquidation, and it is not being liquidated to defraud any person. The regulations specify the manner and content of public announcement, receipt and verification of claims of stakeholders, reports and registers to be maintained, preserved and submitted by the liquidator, realisation of assets and distribution of proceeds to stakeholders, distribution of residual assets, and finally dissolution of corporate person. These oblige a liquidator to preserve a physical or an electronic copy of the reports, registers and books of account for at least eight years after the dissolution of the corporate person, either with himself or with an information utility.


MCA has issued exemption notification to exempts certain enterprises from Section 5 of the Competition Act, for a period of five years from the date of publication of this notification in the official gazette i.e 27-03-2017. The Central Government exempts the enterprises being parties to any acquisition referred to in clause (a) of section 5 of the Competition Act or acquiring of control by a person over an enterprise when such person has already direct or indirect control over another enterprise engaged in production, distribution or trading of a similar or identical or substitutable goods or provision of a similar or identical or substitutable service, referred to in clause (b) of section 5 of the Competition Act; and any merger or amalgamation, referred to in clause (c) of section 5 of the Competition Act where the value of assets being acquired, taken control of, merged or amalgamated is not more than rupees three hundred and fifty crores in India or turnover of not more than rupees one thousand crores in India, from the provisions of section 5 of the Act.

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