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CS Professional · Corporate Restructuring, Valuation and Insolvency · Voluntary Liquidation

Kaveri Engineering Ltd is in voluntary liquidation. Its liquidator asks the finance head and accounts staff for records and help in managing the affairs of the company. What is the staff's obligation under the Code?

Personnel must extend all assistance and cooperation the liquidator requires. Section 34(3) imposes this duty and applies section 19 with the liquidator replacing the interim resolution professional. It is not conditional on a board resolution or a tribunal direction, and staff cannot simply decline.

  1. AThey must extend all assistance and cooperation required by the liquidatorCorrect
  2. BThey may assist only if the board of directors passes a resolution
  3. CThey must cooperate only after the Adjudicating Authority issues a direction
  4. DThey are free to decline since their employment ends on commencement

Explanation

Section 34(3) requires the personnel of the corporate debtor to extend all assistance and cooperation to the liquidator in managing the company's affairs, and applies section 19 with the liquidator substituted for the interim resolution professional. No board resolution or tribunal direction is a precondition.

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