Voluntary Liquidation pursuant to section 59(7) of IBC, 2016-Solvent Company Voluntary liquidation is a process of winding up voluntarily without the Court / NCLT intervention. Members of the Company and Creditors, if an

IBBI notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2024. As per Regulation 37 of the IBBI (Voluntary Liquidation Process) Regulations,2017 previously provided that if the liquidation process continues for more than 90 days when there is no claims and 270 days in case of claims from Creditors, the liquidator shall hold a meeting of the corporate person's contributories and present the status report of the liquidation process. However, with the Amendment Regulations, the timeline has been amended to provide that if the liquidation process continues beyond 90 (Ninety) days or 270 (Two Hundred and Seventy) days from the Liquidation Commencement Date where creditors have approved the resolution and 90 (ninety) days from the liquidation commencement date in other cases then, the liquidator shall: Hold a meeting of the contributories of the corporate person within 15 (Fifteen) days from the end of 270 (two hundred and seventy) days or 90 (Ninety) days, as the case maybe and thereafter, periodically, at the end of every such succeeding period till submission of application for dissolution of the Corporate Person; and Present a status report highlighting the liquidation progress and the reasons for non-completion of the process within the stipulated and the required additional time period for completion of the process. The Status Report shall enclose the audited accounts of the liquidation showing the receipts and payments pertaining to liquidation since the liquidation commencement date. The Amendment Regulations has further inserted Regulation 37 (4) which provides that the Liquidator shall file the Status Report with IBBI within 7 (seven) days of the meeting of contributories. Thus, in view of the above provisions, the requirement of meeting with shareholders comes only upon completion of twelve months from liquidation commencement date, and the fact that now the management of the Company rests in the hands of the liquidator and no decisions are to be taken by the shareholders with respect to the company or for approval of accounts, it is understood that the requirement to hold an Annual General Meeting of the Company is no longer applicable to the Company.