Corporate insolvency has now become a highly regulated industry after the implementation of the Insolvency and Bankruptcy Code, 2016. With the changing rules, financial distress in the corporates should be handled more professionally with the help of experts.
However, one should be careful to distinguish between fraudulent practitioners and genuine ones. One of the features of IBC, 2016, states that the Insolvency process shall be carried out by licensed insolvency professionals in India, who can act on behalf of an entity or individual insolvency. Insolvency accountants, insolvency practitioners, and varied insolvency professional agency or professionals all abide by the Insolvency and Bankruptcy Code, 2016.
Insolvency Professionals or Insolvency accountants are certified professionals who help companies and individuals who become insolvent or are under substantial financial burden. These professionals work with the directors of the companies, debtors, etc. and advise them on the insolvency procedures. Comprehensively, they also help maximize the returns for the stakeholders and creditors.
Apart from participating in the liquidation process, Insolvency accountants or professionals play different roles, like an Administrator, Supervisor or nominee, or a trustee in bankruptcy for the Insolvency Bankruptcy Code proceedings.
According to the First Schedule of Insolvency And Bankruptcy Board Of India (For Insolvency Professionals, Insolvency accountants, Insolvency practitioners, and every Insolvency Professional Agency) Regulations, 2016:
1. Insolvency Professionals In India, cannot involve his relatives or related parties directly or indirectly connected with the assignment he/she is working on.
2. He/she should provide the services for a remuneration that should be charged for the work, which has to be necessarily undertaken. This should be set transparently.
3. Insolvency Practitioners should never hide any material information knowingly, and should not make any misleading statements to the Adjudicating Authority, the Board, or any other stakeholder as applicable.
4. Insolvency Professionals In India must ensure that all the information relating to the Insolvency resolution process, bankruptcy process, or liquidation process shall be kept confidential and discussed with anybody.
5. Insolvency Practitioners must take a limited number of assignments such that he/she is able to devote the required time to all the projects.
6. Insolvency Professional should never conduct any business which is inconsistent with the profession's reputation in the opinion of the Board.
Recognized insolvency professional agencies like the Indian Institute of Insolvency Professionals of ICAI, ICSI Insolvency Professionals Agency, were registered by IBBI (Insolvency and Bankruptcy Board of India) in 2016, and are the regulators for insolvency professionals. These agencies develop a code of ethics and professional standards for other service providers to follow.
During times of financial distress, you're probably not ready to involve yourself in another mishap. Therefore, before choosing the right Insolvency Professional Agency or Insolvency Practitioner for your firm, you should always check if the person has relevant experience and expertise for delivering relevant results.
Also, it would help if you were vigilant enough to know that your chosen insolvency professionals or agency are not involved in several assignments at one time when taking up your job. This ensures that you get personalized attention for efficient and reliable liquidity proceedings.
Section 20 obliges that he/she should take every inch of effort to protect the property of the corporate debtor.
TRC Corporate Consulting aims to provide personalized attention to its client and prepare customized services as per their requirement. So, be it liquidation process, Insolvency resolution, or Accounting and Financial Advisory services, our priority is to deliver only the best to you. Our professionals also provide additional services such as 29 A Verification, Collation of claims, FAR management, and much more.
At TRC, Our expert team of Insolvency professionals follows an analyze and assess approach with unbiased understanding before taking any further steps and keeps you in the loop by updating you on everything about the proceedings. For understanding our Insolvency services better, contact us now!