A DESIGN OF IBC - A CONDUCTIVE PROCESS IN PROTECTING THE INTEREST OF STAKEHOLDERS- PPT July 16 2021.pptx

1. 1
BY
A DESIGN OF IBC - A CONDUCTIVE PROCESS IN PROTECTING
THE INTEREST OF STAKEHOLDERS

2. COVERAGE :
A DESIGN OF IBC -A CONDUCTIVE PROCESS IN
PROTECTING THE INTEREST OFSTAKEHOLDERS
1. NUDGING THEORY
2. DESIGN OF IBC
3. CONDUCTIVE PROCESS
4. PROTECTION OF INTEREST OF STAKEHOLDERS
5. Entrepreneurship development
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3. NUDGING THEORY
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4. NUDGING THEORY PEREPTION
•Perception nudges target the underlying
perceptions of organizational behaviour to
bring about a change in understanding,
and therefore, a change in behaviour.
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5. Nudging theory
• Influence of Human Behaviour
• Subtle Way to Enforce Change
• Small Action Indirect Change In Behaviour
• Influencing Choice Without Taking Power of Choice
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6. Nudging theory
Different Nudges
 Perception Nudge
Motivation Nudge
Ability And Simplicity Nudge
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7. Nudging theory
SEVEN STEPS
1) Define Change
2) Analysing Stakeholders
3) Work Plan and Timelines
4) Inclusive Decision Making
5) Receptive to Feedback
6) Removing Bottlenecks
7) Consistency
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8. DESIGN OF IBC
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9. Perception- change
one tap with multiple vessels.mp4
Codification of law
Multiple objects
Several features
Various authorities
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10. PERCEPTION NUDGES
•Impediments to change
•Employees’ perception of the desired change
•Perceptions of organizational behavior
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11. DESIGN OF IBC
OBJECTIVES
• To consolidate and amend the laws relating to re-organization and insolvency resolution
of corporate persons, partnership firms, and individuals.
• To fix time periods for execution of the law in a time-bound settlement of insolvency (i.e.
180 days).
• To maximize the value of assets of interested persons.
• To promote entrepreneurship.
• To increase the availability of credit.
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12. DESIGN OF IBC
• To balance all stakeholder’s interest (including alteration). Balance to be done in the order of
priority of payment of Government dues.
• To establish an Insolvency and Bankruptcy Board of India (IBBI) as a regulatory body for
insolvency and bankruptcy law.
• To establish higher levels of debt financing across a wide variety of debt instruments.
• To provide painless revival mechanism for entities.
• To deal with cross-border insolvency.
• To resolve India’s bad debt problem by creating a database of defaulters.
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13. SALIENT FEATURES OF IBC
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SOURCE: https://www.insightsonindia.com/wp-content/uploads/2020/10/insolvency.png

14. CONNECTED ACTS -INSOLVENCY
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SOURCE: https://www.google.com/url?sa=i&url=http%3A%2F%2Fvinodkothari.com%2Fwp
content%2Fuploads%2F2019%2F06%2FBooklet-IBC-
Final.pdf&psig=AOvVaw0u0zzADMsAieXf4CV0Vd77&ust=1625741310323000&source=images&cd=vfe&ved=0CAoQjRxqFwoTCIjki8zk0PEC
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15. DESIGN OF AUTHORITIES
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16. DESIGN OF AUTHORITIES

17. DESIGN OF AUTHORITIES
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18. design of IBC
S.NO NUDGE THEORY DESIGN OF IBC
1 Impediments to change Objectives Of Ibc
2 Employees’ perception of the desired change. Salient Features Of Ibc
3 Perceptions of organizational behavior Design Of Authorities
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19. CONDUCTIVE PROCESS
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https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRW44zOyj9HOF-EtKiEXxP_8mwExVzMTFJyAw&usqp=CAU

21. PROCESS OF NUDGING- ibc
• Creating Set Of Choices
• Judgmental Heuristics
• Decision Making
• Positive / Desired Outcome
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22. CORPORATE GOVERNANCE AND ITS
PRINCIPLES
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23. CONDUCTIVE PROCESS
CONDUCTIVE PROCESS
CIRP LIQUIDATION
VOLUNTARY
LIQUIDATION

24. CONDUCTIVE PROCESS - CIRP
Corporate insolvency & resolution process
Application by corporate/operational creditors along with copy of demand notice
or record of default submitted with information utility as the case may be
Acceptance/rejection of application by NCLT
If accepted NCLT will declare moratorium
Notice of acceptance or rejection
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25. CONDUCTIVE PROCESS - CIRP
Public announcement
Appointment of interim resolution professional
Constitution of committee of creditors by interim resolution
professional
Appointment of final resolution professional
Preparation of information memorandum
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26. CONDUCTIVE PROCESS - CIRP
Submission of resolution plan by resolution applicant
Approval of resolution plan by committee of creditors
Approval of resolution plan by NCLT
After approval of NCLT order of moratorium shall cease to have
effect
Initiation of resolution plan
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27. CONDUCTIVE PROCESS- LIQUIDATION
Process Of Liquidation
Appointment Of Liquidator
Liquidator Makes Public Announcements
Submission Of Preliminary Reports
Creation Of Progress Reports
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28. CONDUCTIVE PROCESS- LIQUIDATION
Maintenance Of Books And Records
Appointing An Assisting Professional
Recovery Of Assets
Asset Estate Creation
Preparation Of Asset Memorandum
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29. CONDUCTIVE PROCESS- LIQUIDATION
Valuation Of Assets
Realization Of Security Interest
Selling The Assets
Distributing The Profits Among Claimants
Distributing Unsold Assets Among Claimants
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30. CONDUCTIVE PROCESS- VOLUNTARY
LIQUIDATION
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SOURCE: https://cdn.wallstreetmojo.com/wp-content/uploads/2020/03/Liquidation-Main.jpg

31. PROCESS OF NUDGING
S.NO NUDGING FUNCTIONS IBC FUNCTIONS
1 Influencing people judgment judgment of resolution/ liquidation
2 choice/ behavior in a predictable way Running the going concern /closure of the
company
3 Making posing barriers for people Motivating existing employees to run the
company
4 Self declared interest Appointments made by IPI and
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32. PROTECTION OF INTEREST OF
STAKEHOLDERS
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33. SOURCE: https://images.financialexpress.com/2017/11/Opinion.jpg

34. STEPS OF NUDGING FOR IMPLEMENTING
CHANGE - STAKEHOLDER ANALYSIS
• There are different nudges which can be taken at organization level:
a) Perception Nudge
b) Motivation Nudge
c) Ability And Simplicity Nudge
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35. STEPS OF NUDGING FOR IMPLEMENTING
CHANGE - STAKEHOLDER ANALYSIS
• SEVEN STEPS
a) Define Change
b) Analyzing Stakeholders
c) Work Plan and Timelines
d) Inclusive Decision Making
e) Receptive to Feedback
f) Removing Bottlenecks
g) Consistency
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36. National Guidelines on Responsible
Business Conduct
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Principle 1: Businesses should conduct and govern
themselves with integrity, and in a manner that is ethical,
transparent, and accountable.
Principle 2: Businesses should provide goods and services in a
manner that is sustainable and safe.
Principle 3: Businesses should respect and promote the well-
being of all employees, including those in their value chains.
Principle 4: Businesses should respect the interests of and be
responsive to all its stakeholders.
Principle 5: Businesses should respect and promote human rights.

37. National Guidelines on Responsible
Business Conduct
Principle 6: Businesses should respect and make efforts to
protect and restore the environment.
Principle 7: Businesses, when engaging in influencing public and
regulatory policy, should do so in a manner that is
responsible and transparent.
Principle 8: Businesses should promote inclusive growth and
equitable development.
Principle 9: Businesses should engage with and provide value to
their consumers in a responsible manner.
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PROTECTING THE
INTEREST OF
STAKEHOLDER
CIRP LIQUIATION VOLUNTARY LIQUIDATION

39. PROTECTING THE INTEREST OF
STAKEHOLDER
PROTECTION
GOVERNANCE INITIATIVE
TRANSPARENCY
CONFLICT OF INTEREST
INFORMATION
ACCOUNTABILITY
INDEPENDENCE
TRUE AND FAIR
AUTONOMY
PRINCIPLES OF JUSTICE
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40. claims
SOURCE: https://taxguru.in/wp-content/uploads/2018/09/chart.png

41. Protecting the interest of stakeholders
S.NO NUDGE THEORY DESIGN OF IBC
1 Perception Nudges  Personal Values
 Corporate Values
 Ethical Values
2 Motivation Nudges Prioritize Each Stakeholders
3 Ability And Simplicity Nudges Encouraging Entrepreneurship
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42. “A CONDUCTIVE PROCESS IN PROTECTING
THE INTEREST OF STAKEHOLDERS"
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43. How to Maximize the value of assets
by Insolvency Professional
1. Insolvency Professional have to run Corporate Debtor as going
concern to achieve the maximization value of assets.
2. Insolvency Professional have to improve Operational and Financial
efficiency of Corporate Debtor.
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44. How to Contribute for balancing the interest of
stakeholders
• Strong Corporate Governance
• Leadership
• Heart warming involvement
• Inclusiveness
• Fairness
• Impartial judgment
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45. how to determine Balancing the STAKEHOLDERS
• Not all stakeholders play an equal role
• Conflict in interest and values
• Assessment of the stakeholder’s power
• Impact on the company’s performance
• Influence on different stakeholders
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46. how to Aligne with stakeholders
1. Personal values
Corporate values
Ethical values
2. Prioritize each stakeholders
3. Encouraging entrepreneurship
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47. Concluding remarks
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48. Concluding remarks
S.NO NUDGE THEORY DESIGN OF IBC
1 Perception nudge:
a) Perceptions of organizational behavior
b) Employees’ perception of the desired change.
c)Impediments to change
Objects of the above authorities and salient
features
2 Process of nudging:
a) Creating set of choices
b) Judgmental heuristics
c) Decision making
d) Positive/ desired outcome
Conductive process:
a) CIRP
b) Liquidation
c) Voluntary Liquidation
3 Stakeholders perception:
a) Perception nudges
b) Motivation nudges
c) Ability and simplicity nudges
Protection of interest of stakeholders:
a) Maximization of value of assets
b) Entrepreneurship development
c) Value development system
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