Government Approves Changes to Insolvency and Companies Legislation
Insolvency Law and Companies Act Amendments Approved by Union Cabinet
The Union Cabinet has approved amendments to the Insolvency and Bankruptcy Code (IBC) and the Companies Act, 2013. The amendments, which were cleared by the Cabinet, are expected to have a significant impact on the corporate landscape.
The Corporate Affairs Ministry, which is responsible for implementing both laws, had introduced a Bill in the Lok Sabha in August 2024 to amend the IBC. The proposed changes included provisions to reduce the time taken for the admission of insolvency resolution applications. The Bill was referred to a select committee of the Lok Sabha, which submitted its report in December 2025.
In a related development, Finance and Corporate Affairs Minister Nirmala Sitharaman had announced plans to introduce the IBC (Amendment) Bill, 2025 in the second half of the Budget session, which commenced on Monday.
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