12 Questions
What is the responsibility of the interim resolution professional and resolution professional during the CIRP?
They are responsible for compliance with legal requirements on behalf of the corporate debtor
What forms are prescribed for submission of claims by different stakeholders?
Form B, Form C, Form CA
How is the committee of creditors constituted during the CIRP?
By the interim resolution professional collating all claims
Can a financial creditor who is a related party of the corporate debtor participate or vote in the committee of creditors?
No, they are not allowed to participate in the committee
What information does the notice for the meeting contain?
Agenda, list of issues to be voted upon, and relevant documents
Is physical presence mandatory for a member of the committee of creditors to cast a vote?
No, electronic participation is allowed
How does the resolution professional take the vote of the committee of creditors?
By electronic voting system after the meeting
How is the authorised representative for the class of creditors appointed?
Chosen by the resolution professional
What happens if the corporate debtor owes financial debts to multiple financial creditors as part of a consortium or agreement?
Each financial creditor becomes part of the committee of creditors and their voting share is based on the financial debts owed to them.
What happens if the corporate debtor does not have any financial creditors or if all financial creditors are related parties?
The committee of creditors only comprises operational creditors as per regulation 16 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Who are the members of the committee of creditors when it consists only of operational creditors?
Eighteen largest operational creditors by value or all operational creditors if they are less than eighteen in number, a representative elected by workmen other than those included in the eighteen largest, and a representative elected by all employees other than those included in the eighteen largest.
How is the resolution professional appointed by the committee of creditors?
The resolution professional is appointed by the National Company Law Tribunal (NCLT).
This quiz focuses on the composition of the committee of creditors under the Insolvency and Bankruptcy Code, particularly in cases where there are no financial creditors or they are related parties. It covers the voting share determination and the implications for the corporate debtor.
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