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CS Professional · Corporate Restructuring, Valuation and Insolvency · Preparation and Approval of Resolution Plan

A resolution applicant's plan, selected by the CoC of Godavari Pharma Ltd in a pre-packaged process, is compared with the base plan. The CoC, using its own criteria, decides the selected plan is significantly better than the base plan. What follows under the Code?

The selected plan may be taken up for approval, and the CoC may then approve it for submission to the Adjudicating Authority by a vote of not less than sixty-six per cent. Promoter approval is not required, and the CoC's approval is still needed.

  1. AThe selected plan may be selected for approval, and then may be approved by the CoC for submission to the Adjudicating AuthorityCorrect
  2. BThe selected plan goes straight to the Adjudicating Authority without CoC approval
  3. CThe base plan must still be approved first
  4. DThe selected plan must be approved by the promoters

Explanation

Under section 54K(10), if the CoC decides on its criteria that the selected plan is significantly better than the base plan, it may be selected for approval under sub-section (12). Under sub-section (12), the CoC may then approve it for submission, with the sixty-six per cent. vote under sub-section (13).

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