The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020 on 15th January. 2020.

2. The said amendment provides that a Liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon into the Corporate Voluntary Liquidation Account before he submits an application for dissolution of the corporate person. It also provides a process for a stakeholder to seek withdrawal from the Corporate Voluntary Liquidation Account.

3. The amended regulations are effective from today. These are available at www.mca.gov.in and www.ibbi.gov.in.

 

Deposit of unclaimed dividends and undistributed proceeds must be made into the Corporate Voluntary Liquidation Account before dissolution. The amendment mandates that a liquidator must deposit any unclaimed dividends, undistributed proceeds and income earned thereon into the Corporate Voluntary Liquidation Account before applying for dissolution, and it provides a prescribed process for stakeholders to seek withdrawal from that account.