Management of affairs of the corporate debtor during the pre-packaged insolvency resolution process [ Section 54H ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Management of affairs of corporate debtor during the pre-packaged insolvency resolution process As per Section 54H read with Regulation 50 provides for management of affairs of the corporate debtor during the pre-packaged insolvency resolution process period,- (a) the management of the affairs of the corporate debtor shall continue to vest in the Board of Directors or the partners of the corporate debtor, subject to such conditions as may be specified; (b) the Board of Directors or the partners, of the corporate debtor, shall make every endeavour to protect and preserve the value of the property of the corporate debtor, and manage its operations as a going concern; and (c) the promoters, members, personnel and partners of the corporate debtor, shall exercise and discharge their contractual or statutory rights and obligations in relation to the corporate debtor, subject to the provisions of this Chapter and such other conditions and restrictions as may be prescribed. Management during the process [ Regulation 50 (1) (2) of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ] (1) The corporate debtor shall not manage the affairs of the corporate debtor in a manner prejudicial to the creditors of the corporate debtor or in a fraudulent manner. (2) The corporate debtor shall not undertake any of the following actions without obtaining prior approval of the committee , namely:- (a) transaction above a threshold as decided by the committee; and (b) any other matter as decided by the committee and not covered under section 28 . Monthly Reporting [ Regulation 50 (3) (4) of IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021 ] (3) The corporate debtor in consultation with the resolution professional shall prepare a monthly report and forward it to the members of the committee with the following details:- (a) details of legal proceedings having a material impact on the business of the corporate debtor; (b) details of key contracts executed during the reporting period; and (c) any other relevant matter(s) that may have a material impact on the business of the corporate debtor. (4) The resolution professional may- (a) call for information related to operations of the corporate debtor, including payments made; (b) visit premise(s) of the corporate debtor; (c) inspect the assets of the corporate debtor; (d) call for information related to compliances applicable to the corporate debtor and its status; (e) ask for details related to litigation initiated by or against corporate debtor; and (f) ask details for ascertaining the conduct of corporate debtor during the process.