Informist, Monday, Nov. 17, 2025
NEW DELHI – The Insolvency and Bankruptcy Board of India on Monday suggested that anyone appointed as a director or partner of an insolvency professional entity shall hold at least 5% of its paid-up equity share capital, provided the entity has more than 20 members. The minimum prescribed shareholding or the capital contribution of members, as the case may be, should be reduced on a pro rata basis, the board said in a discussion paper on empowering directors and partners in an insolvency professional entity by proposing minimum shareholding and capital contribution requirements. The Board has invited comments on its proposal by Dec. 7.
An insolvency professional entity is a firm,…