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CS Professional · Corporate Restructuring, Valuation and Insolvency · Pre-Packaged Insolvency Resolution Process

The board of Meera Polymers Pvt Ltd has finalised a declaration under section 54A(2)(f) for a pre-pack. Which of the following content is consistent with the statutory requirement?

The valid declaration is made by a majority of directors, commits to filing within a definite period not exceeding ninety days, states the process is not initiated to defraud anyone, and names the professional approved by creditors, as section 54A(2)(f) requires.

  1. AThe company will file the application within 120 days, and the declaration is signed by one director
  2. BThe company will file within 90 days, and the declaration is made by a majority of the directors, stating the process is not to defraud any person and naming the approved professionalCorrect
  3. CThe company will file within 60 days, and the declaration is made by the financial creditors
  4. DThe company will file within 90 days, and the declaration omits the name of the professional, which is given later

Explanation

Section 54A(2)(f) requires a declaration by the majority of directors stating the application will be filed within a definite period not exceeding ninety days, that the process is not to defraud any person, and the name of the professional approved under clause (e). Option A exceeds 90 days and uses one director. Option C has the wrong declarants, and option D omits the name.

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