CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies
The CoC of Himalaya Foods Ltd resolved to replace the IRP, and the Adjudicating Authority forwarded the name of the proposed resolution professional to the Board. The Board has not confirmed the name within ten days of receipt. What follows under Section 22?
The Adjudicating Authority, by order, directs the IRP to continue as resolution professional until the Board confirms the proposed appointment. Section 22(5) provides this where the Board has not confirmed the name within ten days. The proposed person is not deemed appointed.
- AThe proposed professional is deemed appointed
- BThe Adjudicating Authority directs the IRP to continue as resolution professional until the Board confirms the proposed appointmentCorrect
- CThe CoC must restart the process with a fresh vote
- DThe corporate debtor's board appoints a professional of its choice
Explanation
Section 22(5) provides that if the Board does not confirm within ten days of receiving the name, the Adjudicating Authority shall by order direct the IRP to continue to function as resolution professional until the Board confirms the proposed appointment. There is no deemed appointment of the proposed person, and no fresh vote is mentioned.
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