Insolvency Professionals

A company with hundreds of crores of debt stops paying. Overnight its directors lose control and a stranger walks in to run the factory, collect the claims, call the lenders’ meetings and look for a buyer. That stranger is not a judge and not a civil servant. He is a qualified private professional whom the law calls an insolvency professional. What qualifies him, what must he do, and what stops him from abusing the trust placed in him?

In two minutes

An insolvency professional is a person enrolled with an insolvency professional agency and registered with the IBBI, who alone may act as interim resolution professional, resolution professional, liquidator or bankruptcy trustee, and who must follow the statutory code of conduct in s.208(2).

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