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

State Bank of Dharwad, a financial creditor and CoC member in a CIRP, wishes to be represented at CoC meetings by a professional other than the resolution professional. Which statement is correct under Section 24(5)?

A CoC member creditor may appoint an insolvency professional other than the resolution professional to represent it at meetings, subject to the Section 21 provisions on authorised representatives. The fees of that representative are borne by the appointing creditor, not by the process.

  1. AIt may appoint an insolvency professional other than the RP, and his fees are borne by the company's CIRP costs
  2. BIt may appoint any insolvency professional other than the RP, subject to the specified provisions of Section 21 on authorised representatives, and bears the fees itselfCorrect
  3. CIt may appoint the RP himself to represent it, with fees shared by all creditors
  4. DIt cannot appoint any representative; members must attend personally

Explanation

Section 24(5) permits a CoC member creditor to appoint an insolvency professional other than the RP to represent it, subject to sub-sections (6), (6A) and (6B) of Section 21. The proviso says the fee for representing an individual creditor is borne by that creditor, not by the CIRP costs. Using the RP is excluded by the text.

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