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CS Professional · Corporate Restructuring, Valuation and Insolvency · Winding-up by Tribunal under the Companies Act, 2013

The Tribunal winds up Kaveri Textiles Ltd and constitutes a winding up committee under section 277. Which set of persons forms this committee?

The winding up committee comprises the Official Liquidator attached to the Tribunal, a nominee of secured creditors and a professional nominated by the Tribunal. Section 277(4) prescribes this composition, and the Company Liquidator only convenes its meetings.

  1. AOfficial Liquidator attached to the Tribunal, a nominee of secured creditors, and a professional nominated by the TribunalCorrect
  2. BTwo directors of the company, a nominee of unsecured creditors, and the Registrar
  3. CCompany Liquidator, the petitioner, and a nominee of the shareholders
  4. DOfficial Liquidator, a nominee of the Central Government, and the auditor of the company

Explanation

Section 277(4) lists three members: the Official Liquidator attached to the Tribunal, a nominee of secured creditors, and a professional nominated by the Tribunal. The Company Liquidator acts as convener of the meetings rather than as a listed member, so the option naming him as a member is wrong.

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