Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 Chapter X MANAGEMENT OF AFFAIRS OF THE CORPORATE DEBTOR
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Management restrictions during pre pack process: committee approval required for significant actions and regular reporting to the committee. The corporate debtor must avoid conduct prejudicial to creditors and must obtain committee approval for transactions above committee set thresholds or other specified matters; it must, with the resolution professional, prepare monthly reports for the committee on material legal proceedings, key contracts, and other matters materially affecting the business. The resolution professional may require operational and payment information, visit premises, inspect assets, obtain compliance and litigation details, and examine the debtor's conduct during the process.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Management restrictions during pre pack process: committee approval required for significant actions and regular reporting to the committee.
The corporate debtor must avoid conduct prejudicial to creditors and must obtain committee approval for transactions above committee set thresholds or other specified matters; it must, with the resolution professional, prepare monthly reports for the committee on material legal proceedings, key contracts, and other matters materially affecting the business. The resolution professional may require operational and payment information, visit premises, inspect assets, obtain compliance and litigation details, and examine the debtor's conduct during the process.
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