Voluntary Liquidation Only If Company Has No Debt, Or Can Fully Repay It

A company can voluntarily liquidate assets under the Insolvency and Bankruptcy Code if it does not have not have any debt, according to rules notified on Friday.

The Insolvency and Bankruptcy Code, notified by the government in May last year, seeks to consolidate and amend laws relating to re-organisation as well as insolvency resolution of companies, partnership firms and individuals in a time-bound manner.

Also Read: Insolvency Board Lays Down ‘Fit And Proper’ Criteria