Current context: The government has raised the threshold for invoking insolvency under the Insolvency Bankruptcy Code (IBC) to Rs 1 crore from the current Rs 1 lakh on 24th March 2020.
a. 10 lakh
b. 50 lakh
c. 1 crore
d. 5 crore
- The threshold has been increased in the view to prevent the triggering of such proceedings against small and medium enterprises that are facing problems due to the COVID 19 pandemic.
- The threshold of default has been raised under section 4 of the IBC 2016.
- The Companies Act 2013 prescribed interval of 120 days of holding meetings of the Board of the companies, shall be extended by a period of 60 days till the next two quarters i.e., till 30th September.
- Also, if independent directors of a company have not been able to hold even one meeting for the year 2019-20, it wouldn't be seen as a violation.
- The independent directors are required to hold at least one meeting without the attendance of non-independent directors and members of management, as per the Schedule IV of the Companies Act.
- The government also announced that Companies (Auditor’s Report) Order, 2020 would be made applicable from the financial year 2020-2021 instead from 2019-2020 notified earlier.
Question:
Q.1 The government has recently raised the threshold for invoking insolvency under the Insolvency Bankruptcy Code (IBC) to Rs __________ from the current Rs 1 lakh?a. 10 lakh
b. 50 lakh
c. 1 crore
d. 5 crore
