CAIRR update 26 July, 2019

Summary of notifications under the Companies Act, 2013 and IB Code, 2016 issued on 25/07/2019 and 23/07/2019 respectively are listed below:

1. Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 with immediate effect:
   a. MCA extends the due date for submitting the e-Form DIR-3 KYC for a financial year, by a Director from 31^st July to 30^th September of the subsequent financial year.

   b. If a Director has filed his KYC with MCA in e-form DIR-3 KYC in the previous financial year, for subsequent years, they can submit web-form DIR-3 KYC-WEB through the web service to be compliant. For updating personal information like change in mobile number and e-mail ID, they would have to file e-Form DIR-3 KYC. Read more…

2. Companies (Registration Offices and Fees) Fourth Amendment Rules, 2019:

No fee shall be paid if e-Form DIR-3 KYC-Web is filed by the individual within 30th September of every year, failing which, Rs. 5000 shall be paid as delayed filing fees. Read more…

3. IBBI (Engagement of Research Associates and Consultants) (Amendment) Regulations, 2019:

Schedule I of IBBI (Engagement of Research Associates and Consultants) (Amendment) Regulations, 2017 is substituted to widened the scope of discipline of Research Associate/Consultant by including Insolvency and Valuation. Further, the desirable qualifications for existing disciplines viz., Economics/Public Policy, Law and Business Management is expanded to include a wider net of academic skill sets. Read more…

4. Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2019:

IBBI has amended the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. Highlights are:

a. Regulation 7A: An Insolvency Professional (IP) shall not accept any assignment after 31^st December, 2019 unless the IP holds a valid authorization issued by an IPA.

b. Regulation 10(1): IPA to inform the Board about the renewal /issue /suspension /cancellation /revocation/acceptance/surrender of an authorisation for assignment by an IP within one working day. Earlier it was within seven days from the approval of application.

c. Regulation 11(8) pertaining to the order disposing of a show cause notice against the IPs, now include ‘suspension or cancellation of authorisation for assignment’ issued to IP as an additional disciplinary action to be taken by the Board.

d. In First Schedule under regulation 7(2)(h)- Code of Conduct for IP:

• Insertion of clause 3A: IP to disclose conflict of interest, if there is any during the assignment;
• Substitution of clause 23: Clause 23 is substituted to make employability restrictions on an IP more stringent by restricting them from taking services or employing their relatives for an assignment under this Act. Read more…

5. IBBI (Procedure for Governing Board Meetings) (Amendment) Regulations, 2019:

IBBI has increased the notice period for Governing Board Meetings from “7 working days” to “10 days”. Read more…

6. IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2019:

Through this notification, following amendments have been for existing regulations:

• In Regulation 5(8), age restriction for an independent director to serve on the Board of Insolvency Professional Agencies (IPA) has been increased from 70 to 75 years.
• In the Schedule to the said Regulation,

  a. clause 4(a) under Definitions is substituted to include the definitions of ‘assignment’, ‘authorisation of assignment’, and ‘certificate of membership’.b. in addition to the existing list of items to be maintained in the Register by an IPA under clause 12 under ‘Register of Professional Members’, a new register entry “date of issue, renewal, suspension, revocation of suspension, cancellation and acceptance of surrender of authorisation for assignment and authorisation number;” also needs to be maintained;

  c. a new clause 12A is inserted to deal with the eligibility and application procedure on ‘Authorisation for Assignment’ for a professional member under the Bye-Laws of the agency;

  d. a new clause 23A under Disciplinary Proceedings is inserted to handle disciplinary actions related to Authorisation for Assignment;

  e. Clause 26 is substituted under ‘Surrender of Authorisation for Assignment’ to specify the procedure for Surrender of Authorisation for Assignment by a professional member;

  f. In the Annexure to the Schedule, a new form, ‘Form B’ for granting “Authorisation for Assignment” is inserted. Read more…

7. Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) (Amendment) Regulations, 2019.

Regulation 5(2)(c) is substituted to provide that an IPA shall pay annual fee to the Board within 15 days from the date of commencement of the financial year. In case of any delay, simple interest at the rate of 12 percent per annum till the date of payment shall be paid. Read more…