Regulation 5A

(1) An insolvency professional agency shall, subject to the guidelines issued by the Board from time to time, determine the qualification and experience, manner of appointment, terms and conditions of appointment and other procedural formalities associated with the selection and appointment of the managing director, subject to the condition that- (a) an individual shall be selected as managing director through an open advertisement in all editions of at least one national daily newspaper; (b) an individual at the time joining as managing director shall not be above the age of fifty-five years, which may be relaxed by the Governing Board up to sixty years, after recording reasons therefor; and (c) an individual shall not serve as managing director after he attains the age of sixty-five years. (2) The appointment of an individual as the managing director shall be for a tenure of not less than three years but not exceeding five years. (3) An individual may serve as managing director for a maximum of two terms. (4) The process of appointment for the second term of an individual as managing director shall be conducted afresh. (5) The appointment and remuneration payable to the managing director shall be approved by a compensation committee constituted by the Governing Board. 15 Inserted by Notification No. IBBI/2020-2021/GN/REG068 dated 14th January, 2021 (w.e.f. 14-01-2021). 16 Inserted by Notification No. IBBI/2026-27/GN/REG140, 13th May. 2026 (w.e.f. 13-05-2026).

(6) The appointment, renewal of appointment and termination of service of the managing director shall be subject to prior approval of the Board. 17 [ “(6A) For the purpose of obtaining prior approval of the Board under sub-regulation (6) for appointment or renewal of appointment of the managing director, an insolvency professional agency shall forward not less than two names to the Board, at least one month prior to the expiry of the tenure of the existing managing director.] (7) The managing director shall be liable for removal or termination of services by the Governing Board, with the prior approval of the Board, for failure to give effect to the directions, guidelines and other orders issued by the Governing Board or the Board, or the rules, the articles of association or bye-laws of the insolvency professional agency or on the ground of misconduct or incapacity to continue in office. (8) The Board may suo motu remove or terminate the services of the managing director, if it deems fit, in the interest of stakeholders of the insolvency resolution process or in the public interest, after giving a reasonable opportunity of being heard. (9) The managing director shall be an ex-officio member of Membership Committee, Monitoring Committee, Grievance Redressal Committee and Disciplinary Committee.