If there is NO Financial Creditor, how will the Committee of Creditors be constituted ?
CS Professional · Insolvency - Law and Practice · PYQS · December 2019
If there is NO Financial Creditor, how will the Committee of Creditors be constituted ?
Answer & Explanation:
As per Regulation 16 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, where the corporate debtor has no financial debtor or where all financial creditors are related parties of the Corporate Debtor, the Committee shall be formed comprising of the following members: 18 largest Operational Creditors by value. 1 representative elected by all workmen other than those workmen included under sub-clause (a). 1 representative elected by all employees other than those employees included under sub-clause (a). Where the number of Operational Creditors is less than 18, the Committee shall include all such Operational Creditors.
Topics: Corporate Insolvency Resolution Process (CIRP)
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