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CS Professional · Insolvency and Bankruptcy - Law and Practice · Resolution Strategies (Elective 7.5)

At each CoC meeting of Orion Steel Pvt Ltd, the RP is required to seek approval of costs. Which set of items must the RP place at each meeting in connection with this?

At each meeting the RP must place estimates of income, expense and cash flow until the next meeting, seek approval for costs to be incurred until then, and compare actual costs with the estimates approved at the previous meeting.

  1. AOnly a list of claims admitted so far
  2. BStatements of estimated income, expense and cash flow up to the next meeting, approval request for costs until the next meeting, and a comparison of actual costs with the estimates approved at the previous meetingCorrect
  3. COnly the audited balance sheet of the corporate debtor
  4. DOnly a statement of the RP's fee, with no estimates

Explanation

Regulation 31B(5) requires, at each meeting, estimates of income, expense and cash flow up to the next meeting, a request for approval of costs until the next meeting, and a comparison of actual costs with previously approved estimates. The other options list items that are not the prescribed set.

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