Minimum qualification for board members of insolvency professional agencies proposed

The Insolvency and Bankruptcy Board of India (IBBI) has proposed setting minimum qualifications for members of governing boards of insolvency professional agencies (IPA) as well as introducing periodic self-evaluation by such agencies to strengthen their role in regulating work of insolvency professionals (IPs).

IPAs monitor the conduct and performance of IPs and initiate appropriate action against their members who do not comply with provisions of the Insolvency and Bankruptcy Code (IBC).

The IBBI has proposed an amendment to the bylaws of IPAs to set certain minimum qualifications for the appointment of independent and shareholder directors, which may include expertise in fields of finance, law, economics, management or insolvency.