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WHY BECOME AN INSOLVENCY PRACTITIONER?
Insolvency is
possibly the most demanding career option a professional can undertake. It is
certainly one of the most challenging, involving and rewarding.
Insolvency
practitioners can find themselves running businesses, constructing and
negotiating deals or investigating and advising on the viability of a
business and its restructuring (and, sometimes, the integrity of its
directors). The work of the insolvency practitioner affects the lives,
prospects and livelihoods of both creditors and debtors. Insolvency work is
as much about people as it is about figures. Insolvency practitioners need
the skills to deal with creditors, anxious directors, concerned employees and
a range of other stakeholders in the business.
The insolvency
scene is always changing. Even in these cases, often regarded as the ‘end of
the line’ for businesses, imagination and determination are still needed to
preserve as much of the business (and its associated jobs) as possible, or as
a last resort to get the best possible price for its assets. Even where a
formal insolvency procedure is necessary, in many cases a positive approach
to the rescue of businesses and jobs can be taken through the application of
administrations, administrative receivership and voluntary arrangements.
In the current environment, with personal
debt at record levels, it is vitally important individuals get the correct
advice about the options open to them to resolve their difficulties. As
licensed insolvency practitioners are trained in all aspects of the law and
procedure, they are best placed to provide that advice and only they can act
as supervisors of individual voluntary arrangements or as trustees in
bankruptcies. The profession will be able to rescue increasing numbers of
jobs and businesses in recent years, both because of legislative changes and
the changing attitudes of creditors. Overall, some 20 per cent of insolvent
businesses are rescued in part or as a whole and one in every six insolvent
individuals enters a voluntary arrangement as an alternative to bankruptcy.
OPPORTUNITIES IN CORPORATE INSOLVENCY AND
RESTRUCTURING
Just like a
person requires treatment to treat his disease, a sick company also requires
some form of treatment to overcome its problem of debts. This treatment may
be in the form of restructuring of a company. Restructuring is the corporate
management term for the act of reorganizing the legal, ownership,
operational, or other structures of a company for the purpose of making it
more profitable, or better organized for its present needs. Alternate reasons
for restructuring include a change of ownership or ownership structure,
de-merger, or a response to a crisis or major change in the business such as
bankruptcy, re positioning, or buyout. Restructuring may also be described as
corporate restructuring, debt restructuring and financial restructuring.
There are a
broad range of opportunities that arise from corporate insolvency and
financial restructurings.
The number of
Insolvency professionals enrolled till now:
Less than 100 insolvency professionals have been enrolled till now. Enrolment of insolvency professionals has been started from December 1.
What qualifications do you need to practice as
insolvency professional?
An individual
shall be eligible for registration, if he -
a. has passed
the National Insolvency Examination.
b. has passed
the Limited Insolvency Examination, and has fifteen years of experience in
management, after he received a Bachelor’s degree from a university
established or recognized by law.
c. has passed
the Limited Insolvency Examination and has ten years of experience as -
(i) a
chartered accountant enrolled as a member of the Institute of Chartered
Accountants of India.
(ii) a
company secretary enrolled as a member of the Institute of Company
Secretaries of India.
(iii) a
cost accountant enrolled as a member of the Institute of Cost Accountants of
India, or
(iv) an
advocate enrolled with a Bar Council.
Limited Insolvency Examination
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Courtesy : CA ROHIT RUWATIA
