Regulation 16 - Committee with only operational creditors
Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 Chapter V COMMITTEE OF CREDITORS
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Operational-creditor committee where no independent financial creditors exist: membership by largest operational creditors with proportional voting. Where a corporate debtor has no financial debt or all financial creditors are related parties, a committee composed of the largest operational creditors plus elected workmen and employee representatives must be formed; members have voting rights in proportion to the debt they represent, and the committee has the same rights, powers, duties and obligations as a committee of financial creditors.
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Provisions expressly mentioned in the judgment/order text.
Operational-creditor committee where no independent financial creditors exist: membership by largest operational creditors with proportional voting.
Where a corporate debtor has no financial debt or all financial creditors are related parties, a committee composed of the largest operational creditors plus elected workmen and employee representatives must be formed; members have voting rights in proportion to the debt they represent, and the committee has the same rights, powers, duties and obligations as a committee of financial creditors.
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