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The Tax Publishers Voluntary Liquidation of Companies : New Governance Framework P. Narayanan Introduction of the Insolvency and Bankruptcy Code, 2016 made varied changes to the provisions of winding up, i.e. under Chapter XX of the Companies Act, 2013 in the manner specified in the Eleventh Schedule of the Code. Before the arrival of this Code, winding up of companies was solely governed by the provisions of Companies Act, 1956, however, now voluntary liquidation of a corporate person is governed only by the provisions of Insolvency and Bankruptcy Code, 2016 and Regulations made thereunder by the Board. The learned author briefly discusses the process of voluntary liquidation and dissolution of a company under the Code. 1. Introduction Voluntary liquidation means the liquidation or winding up of any corporate entity by its own will. Voluntary winding up of a company was governed by the provisions of the Companies Act, 1956 prior to 15-11-2016. Thereafter, Schedule XI to the Insolvency and Bankruptcy Code(IBC), 2016 (Code) omitted the mode of voluntary winding up under the provisions of Companies Act, 2013 being inserted in Part II of Chapter XX before coming into effect. Voluntary winding up is now being governed by section 59 of Chapter V of the Code, i.e., 'Voluntary Liquidation of Corporate Persons'(including company). Insolvency and Bankruptcy Board of India (IBBI) has also notified Regulations in that behalf, namely 'Insolvency and Bankruptcy Board of India (Voluntary Liquidation) Regulations, 2017' w.e.f. 1-4-2017. Thus, now, if any company wishes to liquidate itself, it has to go through the procedure prescribed in Regulations issued by the Board along with the provisions of the Code and not the Companies Act, 1956 or 2013. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Voluntary Liquidation of Companies : New Governance Framework

P. Narayanan

Introduction of the Insolvency and Bankruptcy Code, 2016 made varied changes to the provisions of winding up, i.e. under Chapter XX of the Companies Act, 2013 in the manner specified in the Eleventh Schedule of the Code. Before the arrival of this Code, winding up of companies was solely governed by the provisions of Companies Act, 1956, however, now voluntary liquidation of a corporate person is governed only by the provisions of Insolvency and Bankruptcy Code, 2016 and Regulations made thereunder by the Board. The learned author briefly discusses the process of voluntary liquidation and dissolution of a company under the Code.

1. Introduction

Voluntary liquidation means the liquidation or winding up of any corporate entity by its own will. Voluntary winding up of a company was governed by the provisions of the Companies Act, 1956 prior to 15-11-2016. Thereafter, Schedule XI to the Insolvency and Bankruptcy Code(IBC), 2016 (Code) omitted the mode of voluntary winding up under the provisions of Companies Act, 2013 being inserted in Part II of Chapter XX before coming into effect. Voluntary winding up is now being governed by section 59 of Chapter V of the Code, i.e., 'Voluntary Liquidation of Corporate Persons'(including company). Insolvency and Bankruptcy Board of India (IBBI) has also notified Regulations in that behalf, namely 'Insolvency and Bankruptcy Board of India (Voluntary Liquidation) Regulations, 2017' w.e.f. 1-4-2017. Thus, now, if any company wishes to liquidate itself, it has to go through the procedure prescribed in Regulations issued by the Board along with the provisions of the Code and not the Companies Act, 1956 or 2013.