Skip to content

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

In a pre-packaged process, the committee of creditors of Himalaya Cement Pvt Ltd votes on a plan that has been selected for approval. What minimum vote is needed to approve it for submission to the Adjudicating Authority?

The committee of creditors must approve the resolution plan by a vote of not less than 66% of the voting shares, after considering its feasibility and viability and the proposed distribution according to the priority order in section 53(1).

  1. ANot less than 51% of the voting shares
  2. BNot less than 75% of the voting shares
  3. CUnanimous vote of all financial creditors
  4. DNot less than 66% of the voting sharesCorrect

Explanation

Section 54K(13) requires approval of the resolution plan by not less than 66% of the voting shares, after considering feasibility, viability and the distribution in line with the section 53(1) priority. 51% and 75% are not the thresholds stated.

Did you get it right without looking?

One question tells you little. A timed set on Resolution Strategies (Elective 7.5) shows your real accuracy, how long you take and where you lose marks.

Practise Resolution Strategies (Elective 7.5)Free diagnostic mock

More Resolution Strategies (Elective 7.5) questions