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CS Professional · Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

Trustee Anil conducts a section 133 creditors' meeting for bankrupt Mr. Desai. Which statement correctly describes the business that may be conducted under section 134(3) and the record of the meeting?

The meeting can establish a committee of creditors and take up any other business the trustee thinks fit, with resolutions allowed. The trustee must have minutes recorded, signed and retained as part of the bankruptcy process records under section 134(3) and (4).

  1. AOnly the establishment of a committee of creditors may be transacted, and minutes are optional
  2. BThe committee of creditors is established and any other business the trustee thinks fit may be transacted; minutes are recorded, signed and retained as part of the bankruptcy recordsCorrect
  3. CThe Adjudicating Authority decides the business, and minutes are filed only with the Board
  4. DThe trustee may transact any business but must destroy minutes after the meeting once resolutions are filed

Explanation

Section 134(3) lists establishing a committee of creditors and any other business the trustee thinks fit, on which a resolution may be passed. Section 134(4) requires minutes to be recorded, signed and retained as part of the bankruptcy records. The restrictive and destruction options contradict these.

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