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Amendments to bankruptcy code
Why is it in the news
- The Union Cabinet approved amendments to the Insolvency and Bankruptcy Code.
- The amendments placed a greater emphasis on more time-bound resolution and laying down voting rules of the financial creditors.
More in the news
New Amendments:
- Mandatory deadline for the completion of the resolution process within 330 days, including all litigation and judicial processes.
- Votes of all financial creditors covered under Section 21(6A) shall be cast in accordance with the decision approved by the highest voting share [more than 50%] of financial creditors on present and voting basis.
- Another amendment allows for creditors who voted against the majority to receive a minimum liquidation value.
- The resolution plan will be binding on all the stakeholders, including governments, to whom a debt is owed.
Source
The Hindu