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CS Professional · Insolvency and Bankruptcy - Law and Practice · Liquidation of Corporate Person

Regulation 44A was amended with effect from 2 June 2026. A liquidator now drafting the avoidance-transaction plan for the final report asks what changed. Which is correct?

The 2026 amendment replaced 'on the advice of' with 'with the approval of' and omitted the word 'consultation' before 'committee', effective 2 June 2026. The liquidator therefore needs the committee's approval, not just its advice, for the plan on pursuing avoidance and trading proceedings after closure.

  1. AThe words 'on the advice of' were replaced by 'with the approval of', and the word 'consultation' before 'committee' was omittedCorrect
  2. BThe requirement of a final report was removed
  3. CApproval of the Adjudicating Authority replaced the committee
  4. DThe regulation now applies only to section 66(2) proceedings

Explanation

The footnotes show 'on the advice' was substituted by 'with the approval', and the earlier word 'consultation' before 'committee' was omitted, both w.e.f. 02-06-2026. The committee's role thus moved from advisory to approving. The regulation still covers both Chapter III avoidance transactions and Chapter VI fraudulent or wrongful trading, and the final report remains.

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