August 10, 2020
Summary of the notification issued by IBBI on 07/08/2020
IBBI amends IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 Key highlights of the notification are as follows:
1. Basis for Appointment of Authorised Representative(AR): The three IPs offered by the interim resolution professional for the financial creditors to choose from, must be from the State or Union Territory, which has the highest number of creditors in the class as per records of the corporate debtor, to ensure ease of coordination and communication between the AR and the creditors in the class he represents.
2. Voting by AR: AR shall seek voting instructions from the creditors only after circulation of minutes of meeting and vote accordingly. AR can also seek preliminary views of creditors in the class before the meeting, with adequate notice window, as prescribed, to enable him to effectively participate in the meeting.
3. Approval of Resolution Plan: The committee of creditors shall vote on all compliant resolution plans simultaneously, after evaluation of all compliant resolution plans as per evaluation matrix. Only the resolution plan that receives the highest share of votes, which must not be less than 66% of voting, shall be considered as approved.
This notification is integrated in our free-to-use website ca2013.com for your ready reference.
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