Skip to content

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

A resolution plan for Kaveri Textiles Ltd is being drafted. The resolution applicant asks what the plan must state about its own record. Under the Regulations as given, which statement must the plan include?

The plan must include a statement giving details if the applicant or its related parties failed to implement, or contributed to the failure of implementing, any other resolution plan approved by the Adjudicating Authority in the past. The other options are not required.

  1. AA statement giving details if the applicant or any of its related parties has failed to implement, or contributed to the failure of implementing, any other approved resolution plan in the pastCorrect
  2. BA statement that the applicant has never been a party to any civil litigation
  3. CA statement of the applicant's net worth certified by the Adjudicating Authority
  4. DA statement that the applicant will appoint the existing resolution professional as its permanent CEO

Explanation

Regulation 38(1B) requires the plan to include a statement giving details if the applicant or any of its related parties has failed to implement or contributed to the failure of implementation of any other approved plan at any time in the past. The other options describe requirements that do not appear in the text.

Did you get it right without looking?

One question tells you little. A timed set on Preparation and Approval of Resolution Plan shows your real accuracy, how long you take and where you lose marks.

Practise Preparation and Approval of Resolution PlanFree diagnostic mock

More Preparation and Approval of Resolution Plan questions