MSME promoters likely to stay in charge during resolution process

However, all key decisions will have to be finalised by CoC; govt is also considering amending IBC to bring in the pre-packed scheme for all stressed companies

The special insolvency framework for micro, small, and medium enterprises (MSMEs) is likely to allow the insolvent debtor to retain possession of the company till a resolution is reached but all important decisions will have to be finalised by the committee of creditors, Insolvency and Bankruptcy Board of India Chairman M S Sahoo said on Friday.

“The current framework requires the company to go from promoter to interim resolution professional to the resolution professional and then to the resolution applicant. For a small company, this is a lot of business disturbance,” Sahoo said.

The move will not require any change in the