IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Voluntary Liquidation Account
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Voluntary Liquidation Account in favour of entitled stakeholders. Brief background Regulation 39 of IBBI (Voluntary Liquidation Process)...
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Voluntary Liquidation Account in favour of entitled stakeholders.
Brief background
Regulation 39 of IBBI (Voluntary Liquidation Process) Regulations, 2017 provides a framework for management of unclaimed deposits and undistributed proceeds during the voluntary liquidation process. Regulation 39 mandates liquidators a to deposit unclaimed/undistributed amounts into the Corporate Voluntary Liquidation Account and inform the IBBI in Form-G containing the details regarding the stakeholders entitled to such deposited amount.
Procedure for release of amounts
When under Regulation 39(7), a stakeholder claims entitlement to any amount deposited into the Corporate Voluntary Liquidation Account and requests for its withdrawal before dissolution of the corporate person, then the Liquidator shall apply to IBBI (in the form as per Annexure) for the release of the amount for onward distribution to the stakeholders.
Ref. No. IBBI/LIQ/68/2024