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

The CoC of Veena Pharma Ltd resolves by the required majority to continue the existing IRP as the resolution professional (RP). What must happen under Section 22(3)(a)?

When the CoC resolves to continue the IRP as RP, it communicates the decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent in the specified form. The application and Board confirmation procedure applies only when replacing the IRP.

  1. AThe CoC must file an application with the Adjudicating Authority for Board confirmation
  2. BThe CoC communicates its decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent in the specified formCorrect
  3. CThe decision takes effect only after the Board confirms within ten days
  4. DThe IRP's term ends and a fresh appointment by the Adjudicating Authority is needed

Explanation

For continuation, Section 22(3)(a) provides that the CoC communicates its decision to the IRP, the corporate debtor and the Adjudicating Authority, subject to the IRP's written consent. The application and Board confirmation route under sub-sections (3)(b) and (4) applies only to replacement.

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