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

In the CIRP of Narmada Foods Ltd, the committee of creditors wishes to replace the RP appointed under section 22. What is the required vote at a meeting, and who confirms the new professional?

The committee must resolve at a meeting by 66% of voting shares, subject to written consent from the proposed resolution professional. It forwards the name to the Adjudicating Authority, which sends it to the Board for confirmation, and appointment follows the manner in section 16.

  1. ASimple majority of voting shares; the committee appoints directly
  2. B66% of voting shares with written consent from the proposed RP; the name goes through the Adjudicating Authority to the Board for confirmationCorrect
  3. C75% of voting shares; the Adjudicating Authority appoints without reference to the Board
  4. D66% of voting shares; no consent from the proposed RP is required

Explanation

Section 27 requires a vote of 66% of voting shares and written consent from the proposed RP. The name is forwarded to the Adjudicating Authority, which sends it to the Board for confirmation, and appointment follows the section 16 manner.

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