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CS Professional · Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

A CoC meeting of Sagar Steels Pvt Ltd could not be held for want of quorum and stood adjourned automatically to the next day at the same time and place. On the adjourned day, only two members holding 12% of the voting rights attend. Which statement is correct?

The adjourned meeting is quorate with whichever members attend. After an automatic adjournment for want of quorum, no minimum voting percentage is required at the adjourned meeting, so the attendance of members holding 12% is sufficient.

  1. AThe adjourned meeting is quorate with the members attendingCorrect
  2. BThe adjourned meeting needs at least 33% of voting rights to be valid
  3. CThe adjourned meeting needs at least 10% of voting rights to be valid
  4. DThe adjourned meeting must be adjourned again for lack of quorum

Explanation

Where an adjourned meeting follows an automatic adjournment for want of quorum, it is quorate with the members of the committee attending. No percentage threshold applies, so 12% attendance suffices. Requiring 33% again would defeat the purpose of the adjournment rule.

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