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CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies

The CIRP of Kaveri Textiles Ltd was admitted and Mr. Iyer was confirmed as resolution professional. Under Section 23, what is the core role of the resolution professional during the CIRP period?

The resolution professional conducts the whole corporate insolvency resolution process and manages the corporate debtor's operations during the process period, subject to section 27. The role is not limited to calling creditor meetings, verifying claims or preparing documents.

  1. AConduct the entire CIRP and manage the operations of the corporate debtorCorrect
  2. BOnly convene meetings of the committee of creditors, leaving operations with the board
  3. COnly verify claims, while the promoters continue to run operations
  4. DOnly prepare the information memorandum and hand management to the liquidator

Explanation

Section 23(1), subject to section 27, requires the resolution professional to conduct the entire CIRP and manage the operations of the corporate debtor during the CIRP period. The other options describe only narrow parts of the role, or wrongly leave management with promoters or a liquidator.

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