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

Sharma Textiles Ltd is in CIRP. The resolution professional (RP) is planning the next meeting of the committee of creditors (CoC). Under the Code, who must conduct all meetings of the CoC?

The resolution professional conducts all meetings of the committee of creditors. Section 24(2) vests this function in the RP, not in the largest creditor, the Board or the Adjudicating Authority, however large a creditor's voting share may be.

  1. AThe Chairperson of the Insolvency and Bankruptcy Board of India
  2. BThe resolution professionalCorrect
  3. CThe largest financial creditor by voting share
  4. DThe Adjudicating Authority

Explanation

Section 24(2) states that all meetings of the committee of creditors shall be conducted by the resolution professional. The largest creditor may hold the biggest voting share but has no power to conduct meetings. The Board and the Adjudicating Authority do not run CoC meetings.

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