Former employees and entities rendering services to a company that is undergoing insolvency process will be obligated to share information with the resolution professionals, as per the Insolvency and Bankruptcy Code (IBC) amendments approved by Parliament recently.
Earlier, RPs could seek information only from the existing “personnel” during the corporate insolvency resolution process (CIRP). But their nature of work involves getting details on past transactions or financial statements of a company, they often would not get assistance from past employees or service providers like auditors and legal advisors (of the company) that resulted in significant delays.
Wider powers for resolution professionals
“The latest…