Composition of Committee of Creditors: inclusion rules and majority voting requirement determine control over insolvency resolution decisions. The committee of creditors shall comprise all financial creditors of the corporate debtor, excluding related parties from representation or voting. Each creditor in consortium or syndicated facilities is included with a voting share proportionate to the financial debt owed. If no financial creditors exist, the committee consists of operational creditors and worker/employee representatives. A class of creditors may be represented by an authorised representative appointed by the adjudicating authority, with prescribed remuneration. Committee decisions require a majority of voting share, and the resolution professional must furnish requested financial information within seven days.
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Composition of Committee of Creditors: inclusion rules and majority voting requirement determine control over insolvency resolution decisions.
The committee of creditors shall comprise all financial creditors of the corporate debtor, excluding related parties from representation or voting. Each creditor in consortium or syndicated facilities is included with a voting share proportionate to the financial debt owed. If no financial creditors exist, the committee consists of operational creditors and worker/employee representatives. A class of creditors may be represented by an authorised representative appointed by the adjudicating authority, with prescribed remuneration. Committee decisions require a majority of voting share, and the resolution professional must furnish requested financial information within seven days.
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