SICA

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 on 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 orders of the BIFR.

Objectives of SICA

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

• The measures are mainly — legal; financial re-structuring and managerial.

• The SICA had been enacted in the public interest to deal with the problems of industrial sickness we regard to the crucial sectors where public money is locked up.

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

• The measures are mainly — legal; financial re-structuring and managerial.

•The SICA had been enacted in the public interest to deal with the problems of industrial sickness we regard 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 2001proposed 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 a 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 BIFRUnder 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.

o The financial re-construction of the company.

o The proper management of the sick industrial company by change in or takeover of management of the sick industrial company.