NEW DELHI: The Insolvency and Bankruptcy Board of India (IBBI) has tightened norms governing resolution professionals, wherein they would be barred from having employment when they are in possession of authorisation to take up work under the insolvency law.Also, restrictions will also be in place for their relatives in taking up employment after completion of the resolution process.
Besides, as per the amended norms, the resolution professional, and his or her relatives, cannot accept any employment from the successful resolution applicant concerned for one year. An insolvency professional should not undertake any assignment unless he or she holds an “Authorisation for Assignment’’ issued by the insolvency professional agency concerned. This would be effective from January 1, 2020, according to a release.
This would be applicable for an individual acting as an interim resolution professional, resolution professional, liquidator, bankruptcy trustee, authorised representative or in any other role under the Insolvency and Bankruptcy Code.“An insolvency professional shall not engage in any employment when he holds an “Authorisation for Assignment” or when he is undertaking an assignment.
The IBBI has notified amended regulations related to insolvency professionals as well as model bye-laws and the governing board of insolvency professional agencies.“An insolvency professional agency shall issue/renew an ‘Authorisation for Assignment’ to insolvency professionals in accordance with its bye-laws,” the IBBI release said. Further, an individual would be permitted to serve as an independent director on the governing board of an insolvency professional agency up to the age of 75 years.