Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

In a pre-packaged insolvency resolution process of Anand Components Pvt Ltd, the pre-packaged insolvency commencement date is 1 March. The resolution professional constituted the COC on 6 March. By when must the first COC meeting be held, and what happens if the updated list of claims later changes the composition?

The first meeting must be held by 13 March, seven days after the COC was constituted on 6 March. If an updated list of claims changes the composition, the COC is altered accordingly, and the alteration does not affect the validity of any past decision of the committee.

  1. ABy 13 March; composition is altered and past decisions remain validCorrect
  2. BBy 8 March; composition is altered and past decisions become void
  3. CBy 13 March; composition cannot be altered after constitution
  4. DBy 20 March; composition is altered and past decisions remain valid

Explanation

Under section 54-I(2) the first meeting must be within seven days of constitution of the COC: 6 March plus 7 days is 13 March. The proviso to 54-I(1) allows alteration on the updated list of claims, without affecting validity of past decisions. Constitution itself was due by 8 March, which was met.

Did you get it right without looking?

One question tells you little. A timed set on Convening and Conduct of Meetings of Committee of Creditors shows your real accuracy, how long you take and where you lose marks.

Practise Convening and Conduct of Meetings of Committee of CreditorsFree diagnostic mock

More Convening and Conduct of Meetings of Committee of Creditors questions