Committee of creditors assistance when non-bank creditors hold dominant voting share through observer participation and recorded observations. Where creditors other than a scheduled bank or a public financial institution hold more than sixty-six per cent of the voting share in the committee of creditors, the resolution professional must invite the five largest unrelated operational creditors, including the three largest authorities to whom statutory dues are owed, to attend committee meetings as observers without voting rights. Their observations, if any, must be recorded in the minutes of the committee meetings.
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.
Committee of creditors assistance when non-bank creditors hold dominant voting share through observer participation and recorded observations.
Where creditors other than a scheduled bank or a public financial institution hold more than sixty-six per cent of the voting share in the committee of creditors, the resolution professional must invite the five largest unrelated operational creditors, including the three largest authorities to whom statutory dues are owed, to attend committee meetings as observers without voting rights. Their observations, if any, must be recorded in the minutes of the committee meetings.
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