The Enhancement Of Corporate Governance In The Post-Ibc Scenario

Mradul Prakash Agnihotri, BA.LLB. (Hons.), University of Petroleum and Energy Studies

ABSTRACT

The Insolvency and Bankruptcy Code (IBC), which was implemented in 2016, is the bankruptcy legislation of India. It combines many current statutes/acts into a single, comprehensive framework that addresses different facets of corporate insolvency and bankruptcy. Before to the introduction of the IBC, lenders found it difficult to handle the legal dispute because they had little control over the corporate debtor's operations as a result of laborious procedures and numerous legal loopholes that favored the corporate debtor and significantly slowed down the process of debt recovery, resolution, and firm liquidation. IBC is speeding up the process of debt recovery for banks and other financial institutions by simplifying the liquidation of unprofitable business units and the speedy resolution of viable corporate units with a change in ownership or other restructuring tools. In this situation, the IBC presents a chance to improve corporate governance for both banks and corporations, as well as the ability to supervise debtors with strict loan covenants and allow corporations to adopt diversified ownership structures. Analyzing the IBC in the larger context of corporate governance is the goal of the current study.

Keywords: Insolvency, Bankruptcy, Corporate, Liquidation, Governance, Resolution.