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CS Professional · Corporate Restructuring, Valuation and Insolvency · Voluntary Liquidation

Under a resolution plan rejection, the Adjudicating Authority orders liquidation of a corporate debtor and replaces the resolution professional because he did not file written consent to act as liquidator. The Authority directs the Board to propose another insolvency professional. Within what time must the Board propose the name, and what must accompany it?

The Board must propose the name within ten days of the Adjudicating Authority's direction, accompanied by the proposed insolvency professional's written consent in the specified form. This follows section 34(6). Seven days, creditor approval and solvency declarations relate to different provisions.

  1. ATen days; written consent of the insolvency professional in the specified formCorrect
  2. BSeven days; a valuation report of the assets
  3. CFourteen days; approval of two-thirds of creditors by value
  4. DThirty days; a declaration of solvency from the directors

Explanation

Section 34(6) requires the Board to propose another insolvency professional along with that person's written consent in the specified form within ten days of the Authority's direction under section 34(5). The seven-day, creditor and solvency items belong to other provisions, such as section 59 creditor approval.

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