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    Ankit Singh
    The document discusses the Sick Industrial Companies (Special Provisions) Act 1985 (SICA) which established the Board for Industrial and Financial Reconstruction (BIFR) to identify and take remedial measures for sick industrial companies. The BIFR has the role of securing timely detection of sick companies and determining expert measures to revive them through schemes like financial reconstruction, management changes, amalgamation or sale/lease of companies.

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    Ankit Singh
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    The document discusses the Sick Industrial Companies (Special Provisions) Act 1985 (SICA) which established the Board for Industrial and Financial Reconstruction (BIFR) to identify and take remedial measures for sick industrial companies. The BIFR has the role of securing timely detection of sick companies and determining expert measures to revive them through schemes like financial reconstruction, management changes, amalgamation or sale/lease of companies.

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    The document discusses the Sick Industrial Companies (Special Provisions) Act 1985 (SICA) which established the Board for Industrial and Financial Reconstruction (BIFR) to identify and take remedial measures for sick industrial companies. The BIFR has the role of securing timely detection of sick companies and determining expert measures to revive them through schemes like financial reconstruction, management changes, amalgamation or sale/lease of companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    12 views9 pages

    Presentation

    Uploaded by

    Ankit Singh
    The document discusses the Sick Industrial Companies (Special Provisions) Act 1985 (SICA) which established the Board for Industrial and Financial Reconstruction (BIFR) to identify and take remedial measures for sick industrial companies. The BIFR has the role of securing timely detection of sick companies and determining expert measures to revive them through schemes like financial reconstruction, management changes, amalgamation or sale/lease of companies.

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    of 9

    INTRODUCTION

    * SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT 1985, AS INDICATED BY ITS TITLE
    AND PREAMBLE, WAS A SPECIAL LEGISLATION ENACTED IN PUBLIC INTEREST WITH THE TWIN
    OBJECTS OF
     SECURING THE TIMELY DETECTION OF SICK AND POTENTIALLY SICK COMPANIES
     SPEEDY DETERMINATION AND ENFORCEMENT OF REMEDIAL MEASURES I.R.O SUCH
    COMPANIES.
    * SICA WAS BASICALLY AND PREDOMINANTLY A REMEDIAL AND AMELIORATIVE, IN SO FAR AS IT
    IS EMPOWERED A QUASI JUDICIAL BODYBOARD FOR INDUSTRIAL AND FINANCIAL
    RECONSTRUCTION (BIFR), TO TAKE APPROPRIATE MEASURES FOR REVIVALAND REHABILITATION
    OF POTENTIALLY SICK INDUSTRAIL UNDERTAKINGS AND FOR LIQUIDATION OF NON-VIABLE
    COMPANIES.
    Special Features of SICA

    > The Act provides a legal identification of sickness in an industrial company.


     The Act places the responsibility of reporting sickness and potential sickness of an
    industrial company the BIFR in the Board of Directors of such a company.
     The Act also provides for be establishment of an Appellate Authority for Industrial and
    Finance Reconstruction (AAIFR) for hearing appeals against the order of the BIFR.
    Objectives of SICA

     Those measures are to be taken by a body of experts.


     The measures are mainly – legal; financial restructuring and managerial.
     The SICA had been enacted in the public interest to deal with the problems of industrial
    sickness we regards to the crucial sectors where public money is locked up.
    INTRODUCTION

    ✓ The BIFR was established under the Sick Industrial Companies (Special Provisions) Act,
    1985 (SICA). The asset-up in January 1987 and became functional as of 15 May 1987. A new
    industrial policy was tabled amen on 24 July 1991.
    ✓ The companies (Amendment) Bill 2001 proposed to set-up a National Company Law
    Tribunal (NCLT) and a National Company Law Appellate Tribunal.
    Role of BIFR

     BIFR has a chairman and may have maximum of fourteen members, drawn from various
    fields including banking, labour, accountancy, economics, etc.
    * Securing the timely detection of sick and potentially sick companies.
    * Speedy determination by a group of experts of the various measures to be taken in
    respect of the sick company.
    Schemes under BIFR

     Financial reconstruction of the company.


     Proper management of the sick industrial company either by changing the management or
    takeover of management.
     Amalgamation of the sick industrial company with any other company.
     Sale or lease of a part or whole of the sick industrial company.
    Working of BIFR

     Under the Central Government established a Board for Industrial and Financial Re-
    construction (BIFR) to exercise the jurisdiction and powers and discharge the function
    and duties conferred or imposed on the Board by the Act.
    * The financial re-construction of the company.
    * The proper management of the sick industrial company by change in or takeover of
    management of the sick industrial company.

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