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

In the CIRP of Ganga Foods Ltd, who determines the voting share of each financial creditor in the COC, and on what basis does each creditor vote?

The resolution professional determines each creditor's voting share in the manner specified by the Board. Each creditor then votes according to that share, which is based on the financial debts owed to it, not on headcount or the value of operational supplies.

  1. AThe Adjudicating Authority; by number of creditors present
  2. BThe resolution professional; by voting share based on financial debts owed to the creditorCorrect
  3. CThe suspended Board; by value of supplies made to the company
  4. DThe COC chairperson; by one vote per member

Explanation

Section 24(7) provides that the resolution professional determines each creditor's voting share in the manner specified by the Board, and section 24(6) says each creditor votes per the voting share assigned based on financial debts owed to it. Equal votes per member or supplies-based votes are not the rule.

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