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CS Professional · Corporate Restructuring, Valuation and Insolvency · Liquidation on or after Failing of Resolution Plan

The Adjudicating Authority directs the Board to propose a replacement liquidator for Sundaram Plastics Ltd. Within how many days must the Board propose a name, and what must accompany it?

The Board must propose the name within ten days of the Adjudicating Authority's direction, and the proposal must come with the insolvency professional's written consent in the specified form. The Authority then appoints that person as liquidator by order.

  1. ASeven days, with the consent of the creditors
  2. BTen days, with written consent from the insolvency professional in the specified formCorrect
  3. CFifteen days, with a performance bond from the professional
  4. DThirty days, with the approval of the former board

Explanation

Section 34(6) requires the Board to propose another insolvency professional, along with written consent in the specified form, within ten days of the direction under section 34(5). On receiving the proposal, the Authority appoints that person by order under section 34(7).

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