IBBI amends Insolvency and Bankruptcy Board of India Regulations, 2017

The Insolvency and Bankruptcy board of India recently amended the Insolvency and Bankruptcy Board of India Regulations. This is the second amendment. The amendment has made major changes to the voluntary liquidation process.
The amendment allows the corporate persons to replace the liquidator with another liquidator or insolvency professional to initiate voluntary liquidation process.
Earlier, the corporate personnel appoint insolvency professional to conduct voluntary liquidation process but not change the liquidator in due process. However, there can be situations that require appointment of another resolution professional as liquidator. The situations might arise due to conflicts or inadequate expertise.
The Insolvency and Bankruptcy Code requires interim professional to provide choice of three insolvency professionals in public announcement. The creditors select one of them as their authorized representative. The amendments now say that these three professionals should be from the State or Union Territory that has highest number of creditors according to the record of corporate debtor.
The amendment now makes it necessary for the Committee of Creditors to vote for the resolution. The resolution plan that receives not less than 66% of votes is to be considered as approved.