IBBI adds nominee director to IPA governing boards
Insolvency professional agencies must seat an IBBI nominee director without counting that nominee toward the seven-director minimum
IBBI
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Change
IBBI amended IPA governing-board rules to add an IBBI nominee director with equal director status, rights, duties, powers and responsibilities.
Why it matters
The amendment changes the required board composition of insolvency professional agencies. IPAs must accommodate the IBBI nominee as a full director while still maintaining at least seven other directors, and must send at least two managing-director candidates to IBBI before renewal or appointment approval.
Implications
- — Insolvency professional agencies must include the IBBI nominee director on their governing boards and grant the nominee the same status, rights, duties, powers and responsibilities as other directors.
- — IPA company-secretary and governance teams must maintain the minimum seven-director board composition excluding the IBBI nominee director.
- — IPAs seeking appointment or renewal approval for a managing director must send at least two names to IBBI at least one month before the existing managing director's term expires.
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