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CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies

In its first meeting, the CoC of Indus Cables Ltd resolves by the required majority to continue the IRP, Ms Mehta, as resolution professional. Which statement matches Section 22(3)(a)?

The CoC communicates its decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent in the specified form. Board confirmation under Section 22(4) applies only when a new professional is proposed to replace the IRP.

  1. AThe decision needs no communication to anyone, as the IRP simply continues
  2. BThe CoC communicates its decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent in the specified formCorrect
  3. CThe CoC must apply to the Board for a fresh confirmation of Ms Mehta
  4. DThe CoC files the decision only with the Board

Explanation

Section 22(3)(a) says that when the CoC resolves to continue the IRP as resolution professional, it communicates the decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent in the specified form. No Board confirmation is needed in this case, as that step applies only to a replacement under sub-section (4).

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