Shareholders' approval not required for resolution plans; Adjudicating Authority approval binds stakeholders and deems consent. There is no requirement to obtain shareholders' or members' approval for a resolution plan during consideration under the Code; the resolution professional must ensure plans comply with applicable laws so they are legally implementable. A resolution plan approved by the Adjudicating Authority is binding on the corporate debtor and all stakeholders, and actions that would otherwise require shareholder/member consent are deemed to have been given upon such approval.
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.
Shareholders' approval not required for resolution plans; Adjudicating Authority approval binds stakeholders and deems consent.
There is no requirement to obtain shareholders' or members' approval for a resolution plan during consideration under the Code; the resolution professional must ensure plans comply with applicable laws so they are legally implementable. A resolution plan approved by the Adjudicating Authority is binding on the corporate debtor and all stakeholders, and actions that would otherwise require shareholder/member consent are deemed to have been given upon such approval.
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