Hope you’re enjoying our corporate law updates. Insolvency and Bankruptcy Board of India issued a circular (Circular No. IBBI/IP/013/2018) dated 12.06.2018 regarding fee and other expenses incurred for Corporate Insolvency Resolution Process.
When a corporate debtor undergoes corporate insolvency resolution process (CIRP), an Insolvency Professional (IP) is vested with the management of its affairs and he manages its operations as a going concern. He complies with the applicable laws on behalf of the corporate debtor. He conducts the entire CIRP. Such responsibilities of an IP require the highest level of professional excellence, dexterity, and integrity. He needs to be compensated for his professional services commensurate with his ability, duties, and responsibilities. He also needs to pay a fee or incur other expenses for various goods and services required for conducting the CIRP and or managing the operations of the corporate debtor as a going concern.
You can read full circular through this link – Click Here