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CS Professional · Insolvency and Bankruptcy - Law and Practice · Liquidation of Corporate Person

After preparing the Preliminary Report on Tara Metals Ltd, the liquidator finds that realizable assets cannot cover the cost of liquidation and no further investigation is needed. Under the regulation on early dissolution as amended in June 2026, what is the correct course?

The liquidator must place the agenda before the committee and, if at least sixty-six per cent of the voting share decides for early dissolution, apply to the Adjudicating Authority with a detailed report incorporating the decision. The earlier consultation committee advice and a simple majority are no longer the test.

  1. AApply directly to the Adjudicating Authority without consulting anyone
  2. BPlace the agenda before the committee and, if it votes for early dissolution by not less than sixty-six per cent, apply with a detailed report incorporating its decisionCorrect
  3. CConsult the consultation committee and apply if it merely advises early dissolution
  4. DObtain a simple majority of creditors by voting share before applying

Explanation

As amended, regulation 14 requires the liquidator to place the agenda before the committee, and only if it decides by a voting share of at least sixty-six per cent for early dissolution may he apply with a detailed report incorporating that decision. The older consultation committee advice route has been replaced. A simple majority is insufficient.

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