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CS Professional · Corporate Restructuring, Valuation and Insolvency · Pre-Packaged Insolvency Resolution Process

Before approaching its financial creditors, Rohini Engineering Pvt Ltd wants to know who must declare that the pre-pack is not being initiated to defraud any person and that an application will be filed within a fixed period. Which is correct under section 54A(2)(f)?

The declaration must be made by a majority of the directors or partners of the corporate debtor. It states that the application will be filed within a definite period not exceeding ninety days, that the process is not meant to defraud anyone, and names the proposed resolution professional.

  1. AThe insolvency professional, with a period of up to 180 days
  2. BA majority of the directors or partners, with a period not exceeding ninety daysCorrect
  3. CThe members by ordinary resolution, with a period not exceeding sixty days
  4. DAll the directors, with a period not exceeding one hundred and twenty days

Explanation

Section 54A(2)(f) requires a declaration by the majority of the directors or partners. It states that the application will be filed within a definite period not exceeding ninety days, that the process is not to defraud any person, and the name of the approved insolvency professional.

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