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Tutorial-3 Diagnosis, Surgery and operation of a sick company
Tutorial-3 Diagnosis, Surgery and operation of a sick company
Hey people, how are doing today. In my last articles, we learnt about reasons why company becomes sick and some other technical terms. Have you noticed, when a person gets sick then he has to visit the doctors for the diagnosis to know What's wrong with him and what remedies can he take to get himself cured. Similarly, The representatives of the sick company also has to take the said company to a doctor but in this case the doctor is BIFR.
So let's first understand what is BIFR ?
BIFR was set up as an apex board to tackle industrial sickness and was entrusted with the work of taking appropriate measures for revival and rehabilitation of potentially sick undertakings and for liquidation of non-viable companies.
The above was very technical definition right !!! I know.
In simple english , The government has set up a body to whom sick company will visit. Then this body will first understand why it became sick in the first place just like a doctor does diagnosis.
Once the reason for sickness and decided then , this body thinks and tries to implement ssome measures on how such sickness can be cured , so that it can be restored back to the same state. And trust me it really tries.
Naturally, BIFR will issue necessary orders that can be implemented as said above.
Now, what if company doesnot agree with the measures taken by BIFR. Then what can the company do.
There is another organisation to whom a sick company can go, to object against the order of BIFR.
The name of this body is Appellate Authority for Industrial and Financial Reconstruction (AAIFR). This organisation will listen to the problems that the sick company has against BIFR.
Stay tuned for our next update on sick company.
