Skip to content

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

Meridian Textiles Ltd is admitted into CIRP and the committee of creditors (CoC) is constituted on 3 March. By when must the first meeting of the CoC be held under Section 22?

The first CoC meeting must be held within seven days of the constitution of the committee of creditors. The period is counted from constitution of the CoC, not from the insolvency commencement date, so for a CoC formed on 3 March the deadline is 10 March.

  1. AWithin seven days of constitution of the CoCCorrect
  2. BWithin fourteen days of constitution of the CoC
  3. CWithin thirty days of constitution of the CoC
  4. DWithin seven days of the insolvency commencement date

Explanation

Section 22(1) says the first meeting of the CoC shall be held within seven days of the constitution of the committee. The period runs from constitution of the CoC, not from the insolvency commencement date, so the 7-day option counted from commencement is wrong. Fourteen and thirty days have no basis in Section 22.

Did you get it right without looking?

One question tells you little. A timed set on Resolution Strategies (Elective 7.5) shows your real accuracy, how long you take and where you lose marks.

Practise Resolution Strategies (Elective 7.5)Free diagnostic mock

More Resolution Strategies (Elective 7.5) questions