The Central government had on December 1 notified amendments to the Insolvency and Bankruptcy Code (IBC), 2016, in which it had brought a corporate debtor’s personal guarantor under the purview of the Code.
The Insolvency and Bankruptcy Board of India (IBBI), as well as the Ministry of Corporate Affairs (MCA), is in favour of disallowing individuals who have been declared insolvent, from holding any public office or being the personal guarantor to any company, government sources close to the development said.
“We have discussed that they (individuals declared insolvent) should not be allowed to hold or run for any public office. The repayment plan and schedules also have to be thought of. Because unlike corporate insolvency, here no one is taking over,” a top executive from the IBBI said.
The Central government had on December 1 notified amendments to the Insolvency and Bankruptcy Code (IBC), 2016, in which it had brought a corporate debtor’s personal guarantor under the purview of the Code.
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