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CS Professional · Corporate Restructuring, Valuation and Insolvency · Liquidation on or after Failing of Resolution Plan

During the CIRP of Kaveri Steels Pvt Ltd, the resolution professional intimates the Adjudicating Authority of a committee of creditors decision to liquidate, before any resolution plan is confirmed. What minimum voting share must have approved that decision?

The committee of creditors decision to liquidate must be approved by not less than sixty-six per cent of the voting share. Once the resolution professional intimates it before plan confirmation, the Adjudicating Authority must pass the liquidation order.

  1. A51 per cent
  2. B75 per cent
  3. CNot less than sixty-six per cent of the voting shareCorrect
  4. D90 per cent

Explanation

Section 33(2) requires the CoC decision to liquidate to be approved by not less than sixty-six per cent of the voting share. The 51 and 75 per cent figures are incorrect for this decision.

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