Section 189 IBC: Constitution of the Insolvency and Bankruptcy Board of India
Section 189 of the Insolvency and Bankruptcy Code, 2016 (IBC) specifies how the Insolvency and Bankruptcy Board of India (IBBI) is constituted. It establishes the categories of Board members, their qualifications, the selection process, tenure and service conditions.
1. Section 189(1): Composition of the Board
The Central Government appoints members in the following categories:
| Provision | Category | Number | Statutory requirement |
|---|---|---|---|
| 189(1)(a) | Chairperson | 1 | Appointed by the Central Government. |
| 189(1)(b) | Central Government representatives | 3 | Officers not below Joint Secretary or equivalent, representing the Ministries of Finance, Corporate Affairs and Law, one each; ex officio. |
| 189(1)(c) | RBI nominee | 1 | Member nominated by the Reserve Bank of India; ex officio. |
| 189(1)(d) | Other nominated members | 5 | Nominated by the Central Government; at least three must be whole-time members. |
| Total statutory positions | 10 | Actual occupancy may vary with appointments and vacancies. | |
Meaning of ex officio: A person serves on the Board by virtue of holding a specified public office or being nominated in that official capacity. The separate tenure provision in subsection (4) does not apply to ex officio members.
2. Section 189(2): Eligibility and expertise
The Chairperson and other members must be persons of ability, integrity and standing, with demonstrated capacity to address insolvency or bankruptcy issues and special knowledge and experience in one or more of the following fields:
- Law
- Finance
- Economics
- Accountancy
- Administration
These statutory criteria support the Board's specialist regulatory and institutional role.
3. Section 189(3): Selection committee
Except for ex officio appointments, the Central Government makes appointments after obtaining the recommendation of the following selection committee:
- Cabinet Secretary - Chairperson of the selection committee.
- One Secretary to the Government of India nominated by the Central Government - Member.
- Chairperson of IBBI - Member when the committee selects members of the Board.
- Three experts of repute in finance, law, management, insolvency or related subjects, nominated by the Central Government - Members.
The IBBI Chairperson's participation is specifically stated for the selection of Board members; the committee's composition should not be read as requiring an incumbent IBBI Chairperson to select their own successor.
4. Section 189(4): Term, age limit and reappointment
For the Chairperson and members other than ex officio members, the term ends on the earlier of:
- Completion of five years in office; or
- Attaining 65 years of age.
The statute permits reappointment, subject to applicable law and appointment requirements. It does not confer an automatic right to reappointment.
5. Section 189(5): Salary, allowances and service conditions
Salary, allowances and other terms of service for the Chairperson and non-ex officio members are prescribed by rules. The applicable framework includes the Insolvency and Bankruptcy Board of India (Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members) Rules, 2016, as amended. For the current position, consult the latest notified rules and amendments rather than relying on an earlier pay schedule.
6. Related provisions and institutional functions
- Section 188: Establishment and incorporation of the IBBI as a body corporate.
- Section 190: Grounds and safeguards for removal of a Board member.
- Section 191: Powers of the Chairperson, including general superintendence and direction, subject to regulations.
- Section 192: Board meetings, procedure and voting.
- Section 193: Disclosure of interests and non-participation in affected decisions.
- Section 196: Powers and functions of the Board, including regulation of insolvency professionals, professional agencies and information utilities.
The composition provisions in Section 189 concern the Board's governance; they do not, by themselves, establish the outcome of any particular insolvency proceeding.
7. Official legal sources
For the authoritative statutory text and subsequent amendments, consult India Code - Insolvency and Bankruptcy Code, 2016 (official PDF), the IBBI Legal Framework, and the Ministry of Corporate Affairs. The text and subordinate rules should be read together with applicable notifications and amendments.
Frequently asked questions
How many members are provided for under Section 189(1)?
The statutory composition provides for ten positions: one Chairperson, three Central Government ex officio members, one RBI-nominated ex officio member and five other Central Government nominees.
What is the minimum number of whole-time members?
At least three of the five members nominated under Section 189(1)(d) must be whole-time members.
What is the tenure of a non-ex officio Board member?
Five years or until attaining the age of 65 years, whichever is earlier; reappointment is permitted under Section 189(4).
Does the selection committee recommend ex officio members?
No. Section 189(3) excludes ex officio appointments from the selection-committee recommendation requirement.
Legal information only. Verify current rules, notifications and appointments from official publications before relying on them in a specific matter.