General Knowledge · Corporate Law
Under Section 32A of the Insolvency and Bankruptcy Code (IBC), after the approval of a resolution plan and a change in management, the corporate debtor's liability for offences committed prior to the commencement of CIRP:
- 1Is suspended for a period of one year
- 2Transfers completely to the new management
- 3Ceases, but persons responsible for those offences remain liable✓
- 4Continues without any change
Correct answer
Ceases, but persons responsible for those offences remain liable
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