committee of creditors

IBBI circular dated 16th April, 2021 on the subject of matters to be considered by the committee of creditors on request by members of the committee. Read on.

Regulation 18 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations,
2016 (CIRP Regulations) provides that a resolution professional (RP) may convene a meeting
of the committee of creditors (CoC), when he considers it necessary. He shall, however,
convene a meeting of the CoC, if a request to that effect is made by members of the CoC
representing 33% of the voting rights.

  1. Regulation 19 of the CIRP Regulations requires a notice in writing for calling a meeting of
    the CoC. Regulation 21 requires that the notice for a meeting of the CoC shall contain a list of
    matters to be discussed, the list of issues to be voted, and copies of all documents relevant to
    the matters to be discussed and issues to be voted upon at the meeting.
  2. It is clear from a joint reading of the provisions of regulations 18, 19 and 21 of the CIRP
    Regulations that members of the CoC having 33% of the voting rights may request the RP to
    convene a meeting of the CoC. Such request shall include a note proposing the matters to be
    discussed or issues to be voted upon, along with relevant documents, if any. On receipt of the
    request, the RP shall convene a meeting of the CoC for consideration of the note. These
    provisions envisage the following situations:

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