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CS Professional · Corporate Restructuring, Valuation and Insolvency · Winding-up by Tribunal under the Companies Act, 2013

In the winding up of Ganga Steels Ltd, the Tribunal directed an advisory committee under section 287. Meena, the Company Liquidator, asks who chairs its meetings and how many members it can have. Which answer is correct?

The Company Liquidator chairs the advisory committee's meetings, and the committee may have not more than twelve members. Section 287 provides that the members are creditors, contributories or other persons in the proportion the Tribunal directs.

  1. AThe Company Liquidator chairs; not more than twelve membersCorrect
  2. BThe senior-most creditor chairs; not more than twelve members
  3. CThe Company Liquidator chairs; not more than five members
  4. DThe Tribunal's nominee chairs; not more than twelve members

Explanation

Section 287(6) says the advisory committee meeting is chaired by the Company Liquidator, and section 287(2) caps membership at twelve, drawn from creditors and contributories or other persons as the Tribunal directs. The senior-most creditor option is wrong because no such chairing rule exists, and five is not the statutory ceiling.

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