Committee of creditors approval required for major RP actions; approval demands a supermajority vote and unauthorized acts are void. Section 28 mandates that the resolution professional obtain prior approval of the committee of creditors before taking material actions such as raising interim finance beyond CoC limits, creating security interests, changing capital or ownership structure, authorizing large debits, entering related party transactions, amending constitutional documents, delegating authority, disposing of shareholder shares, changing management, transferring rights or debts outside ordinary course, and altering appointments or terms of specified personnel or auditors. The RP must convene a CoC meeting and secure a supermajority vote; actions taken without such approval are void and may be reported by the CoC to the Board.
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 approval required for major RP actions; approval demands a supermajority vote and unauthorized acts are void.
Section 28 mandates that the resolution professional obtain prior approval of the committee of creditors before taking material actions such as raising interim finance beyond CoC limits, creating security interests, changing capital or ownership structure, authorizing large debits, entering related party transactions, amending constitutional documents, delegating authority, disposing of shareholder shares, changing management, transferring rights or debts outside ordinary course, and altering appointments or terms of specified personnel or auditors. The RP must convene a CoC meeting and secure a supermajority vote; actions taken without such approval are void and may be reported by the CoC to the Board.
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