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

Trustee Meera has called a creditors' meeting for Mr. Kulkarni's bankruptcy. On the day, fewer creditors attend than she had expected. Under section 134, what is the correct position on quorum?

The trustee decides the quorum and may conduct the meeting only if the quorum is present. Section 134(2) gives her this power and also bars her from proceeding without quorum, so a thin attendance means the meeting cannot be conducted.

  1. AThe quorum is fixed by the Adjudicating Authority and the meeting proceeds with any attendance
  2. BMeera decides the quorum and may conduct the meeting only if that quorum is presentCorrect
  3. CMeera may conduct the meeting regardless of quorum if she records reasons
  4. DThe quorum is always one-half of the total debt, fixed by the Code

Explanation

Section 134(2) says the bankruptcy trustee decides the quorum and conducts the meeting only if the quorum is present. The Code does not fix the quorum or let the trustee proceed without it.

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