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CS Professional · Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

Rohan, the resolution professional of Anand Foods Ltd, is preparing notice for a CoC meeting. Operational creditors' aggregate dues are 14% of the total debt. Which of the following must he do?

He must give notice to the operational creditors or their representatives, because their aggregate dues of 14% are not below the ten per cent threshold. Their representative may attend the meeting but has no voting right.

  1. AGive notice to the operational creditors or their representatives, who may attend but cannot voteCorrect
  2. BGive notice to the operational creditors, who may vote in proportion to their dues
  3. CSkip notice to operational creditors because only financial creditors sit on the CoC
  4. DGive notice only to the suspended directors

Explanation

Notice must go to operational creditors or their representatives if their aggregate dues are not less than ten per cent of the debt. Here 14% exceeds 10%. One representative may attend but has no right to vote. Voting is by financial creditors per voting share based on financial debt.

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