To understand the role and duties of an insolvency professional, you need to know the meaning of an Insolvency Professional. To put it simply, Insolvency Professionals are professionals registered under any Insolvency Agency, and they are a part of the termination process of an insolvent entity, firms, LLPs, or partnerships. These professionals are permitted to act on behalf of such insolvent entities, companies.
When a company faces bankruptcy, the insolvency professionals play a key role in liquidating the entity assets and carrying out other settlement processes. This procedure has gained momentum with the government introducing strict norms through India's Insolvency and Bankruptcy Code.
An insolvency professional agency is a consulting firm or insolvency organization registered under IBBI u/s 201 of Insolvency Code, 2016.
The main function of these agencies is to control the activities of insolvency professionals. Also, they make sure that they are emerging in the industry. These professional members must comply with the terms and conditions as restricted in the byelaws of the insolvency agency code. IBBI practices control over insolvency resolution professional agencies and its professionals concerning the complaints registered under section 217 of the Insolvency Code.
Apart from managing and registering the insolvency and bankruptcy professionals, the insolvency resolution professional agency also does the following as specified in section 204 of the Insolvency Code (with effect from 15-11-2016):
An entity is qualified to become an Insolvency Professional provided, he/she:
As a first step, any applicant must register with Insolvency Professional agency. Here are the qualifications and experience for the applicants to be registered as Insolvency Professionals:
One of the essential roles of the Insolvency Professionals is to measure the financial position of the business, partnership, LLPs, individuals., and to guarantee an effortless procedure of its termination. In certain cases, these professionals look for opportunities to even rescue businesses. Moreover, the main functions of an Insolvency Professional are:
Insolvency professionals are needed to organize and submit a report to the National Company Law Tribunal with the following:
TRC Corporate Consulting seeks to offer customized attention to its client and set up tailored services as per their requirement. So, be it the process of liquidation, Insolvency resolution, or Accounting and Financial Advisory services, our main concern is to deliver only the best to you. Our consultants also deliver extra services such as 29 A Verification, Collation of claims, FAR management, and much more.
At TRC, our team of Insolvency professionals adhere to an analysed and assessed approach with impartial understanding before taking any steps and keeps you in the loop by informing you on everything about the procedures. To know more about our Insolvency services better, contact us now!
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