Sections 190 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 190 to 193 are the governance rules of the Insolvency and Bankruptcy Board of India. Section 190 lists four grounds on which the Central Government may remove a member. Section 191 gives the Chairperson general superintendence. Section 192 deals with meetings and voting. Section 193 bars a director-member with a pecuniary interest from taking part in deliberations on that matter.
The article follows the IBBI consolidated text of the Code amended up to 12 August 2021 (the "consolidated text").
The Central Government may remove a member who is an undischarged bankrupt, has become physically or mentally incapable, has been convicted of an offence involving moral turpitude in its opinion, or has so abused his position as to make his continuation detrimental to the public interest, the last only after a reasonable opportunity of being heard. The Chairperson has powers of general superintendence and direction. Questions at Board meetings are decided by majority of members present and voting, with a casting vote for the person presiding. A member who is a director with a pecuniary interest in a matter must disclose it and stay out of the deliberation and decision.
Section 190: removal of a member
"The Central Government may remove a member from office if he –"
| Clause | Ground |
|---|---|
| (a) | Is an undischarged bankrupt as defined under Part III |
| (b) | Has become physically or mentally incapable of acting as a member |
| (c) | Has been convicted of an offence, which in the opinion of the Central Government involves moral turpitude |
| (d) | Has so abused his position as to render his continuation in office detrimental to the public interest |
The proviso: "no member shall be removed under clause (d) unless he has been given a reasonable opportunity of being heard in the matter."
Points to note:
- Clause (a) uses the Part III definition. An "undischarged bankrupt" is a bankrupt who has not received a discharge order under section 138 (section 79(22)). See Section 139 of this series for what discharge does.
- Clause (c) hinges on the Central Government's opinion that the offence involves moral turpitude; the conviction itself is a fact.
- Clause (d) is the only ground with an express hearing safeguard. The proviso names clause (d) alone, so the text does not provide the same safeguard in terms for clauses (a), (b) and (c). This article does not add one.
- The section says "a member". Section 189 provides for a Chairperson and members; the text does not say whether "member" in section 190 includes the Chairperson, and nothing is added here. If you need to apply this section to a particular office-holder, a legal consultation with our team can help you read it with the constitution of the Board in section 189.
Section 191: powers of the Chairperson
"Save as otherwise determined by regulations, the Chairperson shall have powers of general superintendence and direction of the affairs of the Board and may also exercise such other powers as may be delegated to him by the Board."
| Element | Words in the text |
|---|---|
| Source of power | The Code itself, subject to regulations |
| Content | General superintendence and direction of the affairs of the Board |
| Additional | Such other powers as may be delegated by the Board |
The opening words, "Save as otherwise determined by regulations", make the power subject to regulations. The text does not say which regulations, and none are described here.
Section 192: meetings of the Board
Sub-section (1). "The Board shall meet at such times and places, and observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be determined by regulations." Times, places, procedure and quorum are left to regulations. The Code fixes none of them.
Sub-section (2): who presides. "The Chairperson, or if, for any reason, the Chairperson is unable to attend any meeting of the Board, any other member chosen by the members present at the meeting shall preside at the meeting."
Sub-section (3): decisions. "All questions which come up before any meeting of the Board shall be decided by a majority votes of the members present and voting, and, in the event of an equality of votes, the Chairperson, or in his absence, the person presiding, shall have a second or casting vote."
| Question | Rule |
|---|---|
| How are questions decided? | By majority of members present and voting |
| Equality of votes? | The Chairperson, or in his absence the person presiding, has a second or casting vote |
| Who presides if the Chairperson cannot attend? | Any other member chosen by the members present |
"Majority votes" is printed as such. The Code leaves quorum to regulations and states no numerical quorum.
Section 193: member not to participate in certain cases
"Any member, who is a director of a company and who as such director has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Board, and the member shall not take any part in any deliberation or decision of the Board with respect to that matter."
Elements of the rule:
- Who. A member who is a director of a company.
- What interest. "Direct or indirect pecuniary interest" in a matter coming up for consideration at a meeting.
- When to disclose. "As soon as possible after relevant circumstances have come to his knowledge."
- How. Disclose the nature of the interest at the meeting; the disclosure is recorded in the proceedings.
- Consequence. The member "shall not take any part in any deliberation or decision" on that matter.
The text does not say what happens to a decision taken in breach, and section 194(1) addresses acts of the Board and defects in constitution or procedure: see Sections 194 and 195. The disclosure duty applies to a "director of a company" and is not worded for other kinds of interest.
A worked example
At a meeting of the Board, a proposal arises on a matter in which a member, Meera Joshi, who is a director of a company, has an indirect pecuniary interest through that company. As soon as possible after she becomes aware of the circumstances, she must disclose the nature of her interest at the meeting; it is recorded; and she takes no part in the deliberation or decision. The remaining members vote and the result is 4 in favour and 4 against. The Chairperson, or in his absence the person presiding, has a second or casting vote under section 192(3).
Separately, if a member were convicted of an offence that the Central Government considers involves moral turpitude, section 190(c) allows removal. If the ground were abuse of position, the member must first be given a reasonable opportunity of being heard. The names and numbers are invented.
The wider chapter
These sections sit in Chapter I of Part IV with section 188 and section 189: see Sections 188 and 189. The live post on IBBI establishment and constitution under sections 188 to 198 also covers the Board's governance provisions.
Law around these sections
The Amendment Act, 2026 (No. 6 of 2026) has no clause that amends sections 190, 191, 192 or 193. It comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether any change to a related provision has been notified.
For section 192, the Board's own meeting procedure is set by regulations as the section says; the regulations are not described in this article. Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help understanding how the regulator is governed?
Registered professionals, agencies and information utilities sometimes need to understand how decisions of the Board are taken and who may take part in them. Our team can help you read the governance sections of Part IV through a legal consultation.
Key takeaways
- The Central Government may remove a member on four grounds: undischarged bankrupt, incapacity, conviction for moral turpitude in its opinion, and abuse of position detrimental to the public interest.
- Removal on abuse of position requires a reasonable opportunity of being heard.
- The Chairperson has general superintendence and direction, subject to regulations, plus delegated powers.
- Board questions are decided by majority of members present and voting, with a casting vote for the person presiding.
- Quorum, times, places and procedure are left to regulations.
- A director-member with a pecuniary interest must disclose it and not take part in the deliberation or decision.
Read next
- Sections 194 and 195: vacancies, officers of the Board and designated financial sector regulator
- Sections 188 and 189: establishment and constitution of the Insolvency and Bankruptcy Board of India
- Section 196 of the Insolvency and Bankruptcy Code, 2016: powers and functions of the Board
- The Insolvency and Bankruptcy Board of India
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.