- Under the proposed changes, a committee of creditors (CoC) may act as a stakeholders’ consultation committee (SCC), which is typically set up within 60 days from the date of commencement of the liquidation, to monitor the process from the beginning.
- Besides It is also proposed that creditors can now replace the liquidator, by a majority vote, in case his conduct is not satisfactory.
- The SCC works as a monitoring mechanism for liquidation, similar to the CoC in corporate insolvency.
- This step has been taken because the need was felt to enhance the accountability of the liquidator, like in the case of the resolution professional.
- Apart from that to empower the stakeholders during the liquidation process, the stakeholders’ consultation committee may, by a majority vote of not less than 66%, can propose the replacement of the liquidator and it shall apply to the adjudicating authority for the appointment of the proposed liquidator.
- IBBI proposes the completion of the liquidation process in 30 days from the current 90 days in select cases.
Question:
Q.1 According to the proposed amendments to the liquidation regulations IBBI has reduced the completion of liquidation from 90 days to _______ days in special cases?a. 45 Days
b. 50 Days
c. 60 Days
d. 30 Days
