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

In the CIRP of Kaveri Textiles Ltd, the resolution professional (RP) is planning the first meeting of the committee of creditors (CoC). Which statement correctly reflects Section 24 on who conducts the meeting and how members may attend?

All CoC meetings are conducted by the resolution professional, and members may attend either in person or through such electronic means as are specified. Neither the Adjudicating Authority nor a financial creditor conducts the meeting, and physical attendance is not compulsory.

  1. AThe meeting must be conducted by the chairperson of the CoC, and members must attend physically
  2. BThe meeting is conducted by the resolution professional, and members may meet in person or by specified electronic meansCorrect
  3. CThe meeting is conducted by the Adjudicating Authority, and members may attend only electronically
  4. DThe meeting is conducted by the largest financial creditor, and members may meet in person or electronically

Explanation

Section 24(1) lets CoC members meet in person or by specified electronic means, and Section 24(2) says all CoC meetings are conducted by the resolution professional. The other options give the conduct of the meeting to someone other than the RP or restrict the mode of attendance.

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