TMI BlogMODEL BYE-LAWS OF AN INSOLVENCY PROFESSIONAL AGENCYX X X X Extracts X X X X X X X X Extracts X X X X ..... authorisation for assignment means an authorisation to undertake an assignment, issued by an insolvency professional agency to an insolvency professional, who is its professional member, in accordance with its bye-laws; (ab) certificate of membership means the certificate of membership of the Agency granted under bye-law 10; ] (b) Code means the Insolvency and Bankruptcy Code, 2016 (31 of 2016); (c) Governing Board means the Board of Directors of the Agency as defined under section 2(10) of Companies Act, 2013 (18 of 2013); (d) professional member means an insolvency professional who has been enrolled as such, in accordance with Part VI of these bye-laws; (e) relative shall have the same meaning as assigned to it in section 2(77) of the Companies Act, 2013. (2) Unless the context otherwise requires, words and expressions used and not defined in these bye-laws shall have the meanings assigned to them in the Code. III. OBJECTIVES 5. (1) The Agency shall carry on the functions of the insolvency professional agency under the Code, and functions incidental thereto. (2) The Agency shall not carry on any function other than those specified in sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name of financial creditor (s) Interim finance prov- ider (s) Name of pros- pective resolution appli- cant(s) Interim resolution professional / resolution professional NA Registered valuer NA Accountant NA A Advocate NA Any other professional (write kind of profession) NA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, shall be enrolled as a professional member if it is not eligible to be registered as an insolvency professional with the Board. ] Process of Enrolment as Professional Member. 10. (1) 24 [ (1) An individual or an insolvency professional entity may apply for enrolment as a professional member by submitting an application in Part I of Form A and Part I of Form AA, respectively, of the Second Schedule to Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, in such manner and with such fees as may be specified by the Agency. ] (2) The Agency shall examine the application in accordance with the applicable provisions of the Code, and rules, regulations and guidelines thereunder. (3) On examination of the application, the Agency shall give an opportunity to the applicant to remove the deficiencies, if any, in the application. (4) The Agency may require an applicant to submit additional documents, information or clarification that it deems fit, within reasonable time. (5) The Agency may reject an application if the applicant does not satisfy t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ency resolution process where the professional member has been appointed as an interim resolution professional, or (d) any other person who has obtained the consent of the member for such inspection. 3 [ 12A. Authorisation for Assignment. (1) The Agency, on an application by its professional member, may issue or renew an authorisation for assignment. (2) A professional member shall be eligible to obtain an authorisation for assignment, if 17 [ the professional member ] - (a) is registered with the Board as an insolvency professional; (b) is a fit and proper person in terms of the Explanation to clause (g) of regulation 4 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016; (c) is not in employment; (d) is not debarred by any direction or order of the Agency or the Board; (e) has not attained the age of seventy years; (f) has no disciplinary proceeding pending against 20 [ it ] before the Agency or the Board; (g) complies with requirements, as on the date of application, with respect to- (i) payment of fee to the Agency and the Board; (ii) filings and disclosures to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Agency. ] 28 [ (6) An authorisation for assignment issued or renewed by the Agency shall be valid for a period of one year from the date of its issuance or renewal, as the case may be: Provided that an authorisation for assignment issued or renewed by the Agency shall be valid till 30th of June of the year where the expiry of the period of one year falls from 1st of January to 30th of June, or till 31st of December of the year where the expiry of the period of one year falls from 1st of July to 31st of December: Provided further that if the professional member attains the age of seventy years during this period, the authorisation for assignment shall be valid till such date. ] (7) An applicant aggrieved of an order of rejection of 19 [ its ] application] by the Agency may appeal to the Membership Committee within 10 [ fifteen days ] from the date of receipt of the order. 8 [ Provided that, where an application for issue of authorisation for assignment has been rejected by an insolvency professional agency, on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Model Bye- Laws and Governing Board of Insolvency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A professional member shall submit information, including records of ongoing and concluded engagements as an insolvency professional, in the manner and format specified by the Agency, at least twice a year. 17. The Monitoring Committee shall review the information and records submitted by the professional members in accordance with the Monitoring Policy. 18. The Monitoring Policy shall provide for the following - (a) the frequency of monitoring; (b) the manner and format of submission or collection of information and records of the professional members, including by way of inspection; (c) the obligations of professional members to comply with the Monitoring Policy; (d) the use, analysis and storage of information and records; (e) evaluation of performance of members; and (f) any other matters that may be specified by the Governing Board. 19. The Monitoring Policy shall (a) have due regard for the privacy of members, (b) provide for confidentiality of information received, except when disclosure of information is required by the Board or by law, and (c) be non-discriminatory. 20. The Agency shall submit a report to the Board in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 [ 23A. The authorisation for assignment shall stand suspended upon initiation of disciplinary proceedings by the Agency or by the Board, as the case may be. ] 22 [Explanation .- A disciplinary proceeding shall be considered as pending against the professional member from the date he has been issued a show cause notice by the Agency or the Board, as the case may be, till its disposal by the Disciplinary Committee of the Agency or the Board, as the case may be. ] 24. (1) The Agency shall have a Disciplinary Policy, which shall provide for the following - (a) the manner in which the Disciplinary Committee may ascertain facts; (b) the issue of show-cause notice based on the facts; 5 [ (ba) cancellation of authorisation for assignment; ] (c) disposal of show-cause notice by a reasoned order, following principles of natural justice; (d) timelines for different stages of disposal of show cause notice; and (e) rights and obligations of the parties to the proceedings. (2) The orders that may be passed by the Disciplinary Committee shall include- (a) expulsion of the professional member; (b) suspension of the professional member for a certain period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Up to ₹ 1,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 50,000. 9. Fails to make public announcement in the manner provided for in the relevant Regulations. Up to ₹ 2,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 1,00,000. 10. Fails to provide notice regarding meetings of creditors. Up to ₹ 1,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 50,000. 11. Fails to reject resolution plan from ineligible resolution applicants. Up to ₹ 2,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 1,00,000. 12. Fails to take action in respect of preferential, undervalued, fraudulent or extortionate credit transactions. Up to ₹ 2,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 1,00,000. 13. Enters into contract or agreement with professionals in an incomplete and improper manner. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall promptly realise the monetary penalty imposed by the Disciplinary Committee and credit the same to the Fund constituted under section 222 of the Code. ] 25. (1) The Governing Board shall constitute an Appellate Panel consisting of one independent director of the Agency, one member from amongst the persons of eminence having experience in the field of law, and one member nominated by the Board. (2) Any person aggrieved of an order of the Disciplinary Committee may prefer an appeal before the Appellate Panel within thirty days from the receipt of a copy of the final order. (3) The Appellate Panel shall dispose of the appeal in the manner it deems expedient, within thirty days of the receipt of the appeal. XI. SURRENDER OF PROFESSIONAL MEMBERSHIP AND EXPULSION FROM PROFESSIONAL MEMBERSHIP 6 [Surrender of Authorisation for Assignment.` 26. (1) A professional member shall make an application to surrender 19 [ its ] authorisation for assignment to the Agency at least thirty days before he- (a) becomes a person resident outside India; (b) takes up an employment; or (c) starts any business, except as specifically permitted under the Code of Conduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agency (a) if it becomes ineligible to be enrolled under clause 9; (b) on expiry of thirty days from the order of the Disciplinary Committee, unless set aside or stayed by the Appellate Panel; (c) upon non-payment of professional membership fee despite at least two notices served in writing; (d) upon the cancellation of its certificate of registration by the Board; (e) upon the order of any court of law. (2) While expelling the professional member, the Agency may take into account the factors provided in clause 29. ] *********** Notes 1. Substituted vide NOTIFICATION No. IBBI/2019-20/GN/REG043 dated 23-07-2019 before it was read as (a) certificate of membership means the certificate of membership of the Agency granted under bye-law 10; 2. Inserted vide NOTIFICATION No. IBBI/2019-20/GN/REG043 dated 23-07-2019 3. Inserted vide NOTIFICATION No. IBBI/2019-20/GN/REG043 dated 23-07-2019 4. Inserted vide NOTIFICATION No. IBBI/2019-20/GN/REG043 dated 23-07-2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ency under the orders of the Disciplinary Committee shall be credited to the Insolvency and Bankruptcy Fund constituted under section 224 of the Code. 13. Re-Numbered vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 before it was read as, 9. 14. Inserted vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 15. Substituted vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 before it was read as, An individual 16. Inserted vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 17. Substituted vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 before it was read as, he 18. Inserted vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 19. Substituted vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 before it was read as, his 20. Substituted vide Notification No. IBBI/2022-23/GN/REG100 dated 03-10-2022 before it was read as, him 21. Inserted vide Notification No. IBBI/2022-23/GN/REG101 dated 31-10-2022 22. Inserted vide Notification No. IBBI/2022-23/GN/REG101 dated 31-10-2022 23. Substituted vide Notification No. IBBI/2022-23/GN/REG101 d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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