CS Professional · Corporate Restructuring, Valuation and Insolvency · Preparation and Approval of Resolution Plan
Under section 30(4), the CoC approves a resolution plan submitted by Veda Metals Pvt Ltd. What minimum vote is needed, and who votes?
The plan needs approval by not less than 66% of the voting share of the financial creditors. Section 30(4) sets this threshold, having replaced the earlier seventy-five per cent, and operational creditors do not vote.
- ANot less than 75% of voting share of all creditors
- BNot less than 51% of voting share of financial creditors
- CNot less than 66% of voting share of financial creditorsCorrect
- DNot less than 66% of voting share of operational creditors
Explanation
Section 30(4), as amended, requires a vote of not less than sixty-six per cent of the voting share of the financial creditors. The 75% figure was the earlier threshold, replaced in 2018.
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