Rights and duties of authorised representative of financial creditors [ Section 25A ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Rights and duties of authorised representative of financial creditors Right of participation of financial creditors in CoC meeting [ Section 25A((1) ] T h e authorised representative under section 21(6) or (6A) or section 24(5) shall have the right to participate and vote in meetings of the committee of creditors on behalf of the financial creditor he represents in accordance with the prior voting instructions of such creditors obtained through physical or electronic means. AR to circulate agenda [ Section 25A(2) ] I t shall be the duty of the authorised representative to circulate the agenda and minutes of the meeting of the committee of creditors to the financial creditor he represents. AR not to act against the interest of the FC [ Section 25A(3) ] T h e authorised representative shall not act against the interest of the financial creditor he represents and shall always act in accordance with their prior instructions: AR representing several FC [ First Proviso ] T h e first proviso to this sub-section provides that if the authorized representative represents several financial creditors, then he shall cast his vote in respect of each financial creditor in accordance with instructions received from each financial creditor, to the extent of his voting share: AR not to vote in CoC Meeting if no instructions is received from FC [ Second Proviso ] T h e second proviso provides that if any financial creditor does not give prior instructions through physical or electronic means, the authorised representative shall abstain from voting on behalf of such creditor. Vote by AR [ Section 25A(3A) ] N o t w i th s ta n d i n g anything to the contrary contained in section 25A(3), the authorised representative under section 21(6) shall cast his vote on behalf of all the financial creditors he represents in accordance with the decision taken by a vote of more than fifty per cent. of the voting share of the financial creditors he represents, who have cast their vote: P r o v id e d that for a vote to be cast in respect of an application under section 12A , the authorised representative shall cast his vote in accordance with the provisions of section 25A(3) . Voting by electronic means [ Section 25A(4) ] T h e authorised representative shall file with the committee of creditors any instructions received by way of physical or electronic means, from the financial creditor he represents, for voting in accordance therewith, to ensure that the appropriate voting instructions of the financial creditor he represents is correctly recorded by the interim resolution professional or resolution professional, as the case may be. E xp l a n a ti o n . - For the purposes of this section, the electronic means shall be such as may be specified. Fees of Resolution Professional : A s per Section 5(13)(b) (c) of the Code, the fees payable to any person acting as a resolution professional and any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern shall be included in the insolvency resolution process costs and shall be paid in priority before payment to any other creditor.