Introduction The process of striking off a company from the official register, governed by the Registrar of Companies (RoC) under the provisions of Section 248 of the Companies Act 2013, represents a significant legal action that results in the dissolution of a company, stripping it of its corporate identity and…

Insolvency and Bankruptcy Code (IBC), 2016 is an effective and adequate framework for insolvency resolution of corporate debtors. The IBC has been a game-changer for handling stressed assets in India. Designed to streamline the process of insolvency resolution, the IBC provides a robust framework that not only safeguards creditors' interests…

INTRODUCTION: The Compulsorily Convertible Debentures or CCDs offer the benefits of both debt in terms of interest payment and equity in terms of ownership after conversion at a specified time or event. This dual nature of the CCDs – being a debt instrument initially and later converting into equity has…

The Insolvency and Bankruptcy Board of India (IBBI) introduced the IBBI (Voluntary Liquidation Process) (Amendment) Regulations, 2024 on 31st January, 2024. The amendment aims to make the process of voluntary liquidation of a company a smoother and a more transparent process. The amendment comprehensively addresses the procedural requirements for the…

The Voluntary Liquidation (VL) process in India was introduced to streamline business closure, aligning with the Government of India's objective of facilitating 'ease of doing business.' Despite this, there are situations post-commencement of VL where factors such as regulatory amendments, new government policies, or changes in market dynamics necessitate a…

India has received a good flow of investments in the form of Foreign Direct Investments (FDI). While most businesses have succeeded in India but a fair number have also lost money and for this reason or as a part of their global strategy, a call for closure of business in…

Voluntary liquidation is a process by which a company, which is otherwise financially viable, chooses to wind up its operations and dissolve its legal existence. Under the Insolvency and Bankruptcy Code (IBC), there are several safeguards in place to protect the rights of stakeholders during the voluntary liquidation process. A…

Have you ever come across a case where a notice has been issued by the Enforcement Directorate or any regulatory authority for violation of foreign exchange laws or any other law(s) to a Company that has been struck off or dissolved?  Can any inquiry or investigation be initiated against a…

The Voluntary Liquidation Regulations provides that the liquidator shall endeavour to complete the liquidation process of the corporate person within twelve months from the liquidation commencement date. As on 31st December, 2021, 1105 voluntary liquidation processes have been initiated; out of which only 546 voluntary liquidation cases have been completed…

There are different groups of people with different interests involved in the liquidation of a company. These include directors, shareholders, creditors who hold a security interest in the company’s assets, unsecured creditors, employees and customers. It is the duty of the liquidator to ensure fair treatment to all groups and in…