Issue notice for conducting meeting - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Issue notice for conducting meeting [ Section 24(3) (4) read with Regulation 21, 22, 23 24 ] As per Section 24(3) , The resolution professional shall give notice of each meeting of the committee of creditors to - (a) members of committee of creditors, including the authorised representatives referred to in sections 21(6) and (6A) and section 24(5) ; (b) members of the suspended Board of Directors or the partners of the corporate persons, as the case may be; (c) operational creditors or their representatives if the amount of their aggregate dues is not less than ten per cent of the debt. As per section 24(4) , The directors, partners and one representative of operational creditors, as referred to in section 21(3), may attend the meetings of committee of creditors, but shall not have any right to vote in such meetings: Provided that the absence of any such direct or, partner or representative of operational creditors, as the case may be, shall not invalidate proceedings of such meeting. Contents of the Notice [ Regulation 21] The notice shall inform the participants of the venue, the time and date of the meeting and of the option available to them to participate through video conferencing or other audio and visual means, and shall also provide all the necessary information to enable participation through video conferencing or other audio and visual means. The notice of the meeting shall provide that a participant may attend and vote in the meeting either in person or through an authorised representative: such participant shall inform the resolution professional, in advance of the meeting, of the identity of the authorised representative who will attend and vote at the meeting on its behalf. The notice must contain a list of all matters to be discussed at the meeting and a list of issues to be voted on at the meeting, as well as copies of all documentation relevant to these matters and voting issues. It is advisable to keep the notice details to enable FCs to make an informed decision and be prepared at the meeting. Quorum at the meeting [ Regulation 22 ] The CIRP Regulations states that a minimum of 33 percent of voting rights is required to be present for the meeting to have a quorum. Members may be present either in person or by video conferencing, or by any audio-visual means. The CoC may modify the percentage of voting rights required for a quorum for future meetings. Where a meeting could not be held for want of quorum, it shall automatically be adjourned and reconvene at the same time and place the next day. The adjourned meeting shall be quorate with the members of the CoC attending the meeting. Video Participation [ Regulation 23 ] Members of the CoC can participate in the meeting through video conferencing. Regulation 23 of the CIRP Regulations deals with participation at a meeting via video conferencing or other audio-visual means. It mandates the RP to make all necessary arrangements to ensure an uninterrupted and clear audio and/or visual connection. In this regard, the RP must ensure: integrity of the meeting, by ensuring sufficient security of the meeting and identification procedures; availability of proper audio-visual equipment; proper recording and preparation of minutes of the proceedings; clearly marked and safe storage of recordings for safekeeping; attendance or access to the meeting is limited to people authorized to participate; proceedings be seen and heard clearly by all attendees. People who are differently abled may ask the RP to allow a person to accompany them to the meeting. Where a meeting is conducted through video conferencing or other audio and visual means, the scheduled venue of the meeting as set forth in the notice convening the meeting, which shall be in India, shall be deemed to be the place of the meeting and all recordings of the proceedings at the meeting shall be deemed to be made at such place. Conduct of the Meetings [ Regulation 24 ] The CIRP Regulations states that the resolution professional shall act as the chairperson of the committee of creditor meeting. At the beginning of the meeting, the resolution of professional is required to take a roll call, asking all participants to state the following for the record: their names; whether they are attending as a member of the committee of creditors or as any other participant; whether they are representing a member or group of members; the location from which they are participating; that the agenda has been received, together with all relevant material; that no one else is attending or has access to the proceedings of the meeting at their location. After the roll call, the RP is required to inform all participants of the names of all those present at the meeting and confirm if the required quorum is complete. The RP shall ensure that the required quorum is present throughout the meeting. As per regulation 22(2), if no quorum is present, the meeting will automatically adjourn and reconvene at the same time and place the next day. From the start of the committee of creditors meeting till its conclusion, no person other than the participants and any other person whose presence is required by the RP is allowed access to the place where the meeting is held or to the video conferencing or other audio and visual facility without the permission of the resolution professionals.