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TMI BlogComposition of the Committee of creditors [ Section 21 ]X X X X Extracts X X X X X X X X Extracts X X X X ..... ate debtor owes financial debts to two or more financial creditors as part of a consortium or agreement, each financial creditors shall be part of the committee of creditors and their voting share is determined on the basis of the financial debts owed to them. Where there is no financial debt or where all Financial creditors (FC) are related parties of the corporate debtor (CD), the committee of creditors CoC consists of operational creditors only, comprising: the 18 largest operational creditors by value, one representative elected by all workmen and one representative of employees. Regulation 16B provides that where the corporate debtors has only creditors in a class and no other financial creditors eligible to join the committee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l debts owed to them. (4) Where any person is a financial creditor as well as an operational creditor,- (a) such person shall be a financial creditor to the extent of the financial debt owed by the corporate debtor, and shall be included in the committee of creditors, with voting share proportionate to the extent of financial debts owed to such creditor; (b) such person shall be considered to be an operational creditor to the extent of the operational debt owed by the corporate debtor to such creditor. (5) Where an operational creditor has assigned or legally transferred any operational debt to a financial creditor, the assignee or transferee shall be considered as an operational creditor to the extent of such assignment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial creditors, containing the name of an insolvency professional, other than the interim resolution professional, to act as their authorised representative who shall be appointed by the Adjudicating Authority prior to the first meeting of the committee of creditors; (c) Where a financial debt is represented by a guardian, executor or administrator, such person shall act as authorised representative on behalf of such financial creditors, and such authorised representative under clause (a) or clause (b) or clause (c) shall attend the meetings of the committee of creditors, and vote on behalf of each financial creditor to the extent of his voting share. Class of Creditors Section 21(6A) of the IBC states that a class of cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided in this Code, all decisions of the committee of creditors shall be taken by a vote of not less than fifty-one per cent. of voting share of the financial creditors: Provided that where a corporate debtor does not have any financial creditors, the committee of creditors shall be constituted and shall comprise of such persons to exercise such functions in such manner as may be specified. Furnishing Of financial information of corporate debtor [ Section 21(9) and (10) ] The committee of creditors shall have the right to require the resolution professional to furnish any financial information in relation to the corporate debtor at any time during the corporate insolvency resolution process. The resolution prof ..... X X X X Extracts X X X X X X X X Extracts X X X X
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