During Resolution process for Corporate Persons, the Insolvency and Bankruptcy Code (IBC), 2016 proposes two independent stages. What are those two independent stages as per the Code ?
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2023
During Resolution process for Corporate Persons, the Insolvency and Bankruptcy Code (IBC), 2016 proposes two independent stages. What are those two independent stages as per the Code ?
Answer & Explanation:
In resolution process for corporate persons, the Insolvency and Bankruptcy Code, 2016 proposes two independent stages: Corporate Insolvency Resolution Process (CIRP), during which the creditors assess the viability of debtor's business and the options for its rescue and revival. Liquidation, in case the insolvency resolution process fails or financial creditors decide to wind-up and distribute the assets of the debtor.
Topics: Insolvency and Bankruptcy Code (IBC)
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