Question
Consider the following statements regarding the recent amendments done in IBC 2016:
Select the correct answer using the code given below
- It is applicable for corporate debtor and corporate guarantor
- New management is ringfenced from offences committed by the erstwhile management
Select the correct answer using the code given below
Answer: Option B
Answer: (b)
If a company has given a guarantee to another company, then the IBC will be applicable to that corporate guarantor also.
If the previous management did some offence/fraud then the new management taking over the company will be protected (also called ringfenced) from the crimes done by the previous management.
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Answer: (b)
If a company has given a guarantee to another company, then the IBC will be applicable to that corporate guarantor also.
If the previous management did some offence/fraud then the new management taking over the company will be protected (also called ringfenced) from the crimes done by the previous management.
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