More disclosures, status report now part of voluntary liquidation plan

Till financial year 2022-23, 1,562 companies initiated voluntary liquidation, of which final reports were submitted in 1,039 cases and 17 of these were withdrawn, according to the IBBI data

Company directors filing for voluntary liquidation process under the Insolvency and Bankruptcy Code (IBC) must disclose pending proceedings, assessments and litigations before the statutory authorities, the modified rules by the Insolvency and Bankruptcy Board of India (IBBI) have said.

The directors must also declare beforehand that sufficient provisions have been made to meet the likely obligations arising on account of the pending proceedings.

IBBI has amended the regulations “to streamline the voluntary liquidation process and facilitate the distribution of unclaimed proceeds to the stakeholders before the dissolution of the corporate person.”

In the amendments dated February 5, the IBC