Management of affairs during pre pack insolvency: board retains control subject to creditor safeguards and committee approvals. Under Section 54H and Regulation 50 the Board of Directors or partners continue to manage the corporate debtor subject to prescribed conditions and duties to protect and preserve value and run the business as a going concern. Management must not act prejudicially to creditors or fraudulently and must obtain committee approval for transactions above committee thresholds and other specified matters. The corporate debtor, with the resolution professional, must provide monthly reports to the committee on material legal proceedings, key contracts and other matters materially affecting the business, while the resolution professional may request operational information, inspect assets and premises, and review compliance and litigation details.
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 of affairs during pre pack insolvency: board retains control subject to creditor safeguards and committee approvals.
Under Section 54H and Regulation 50 the Board of Directors or partners continue to manage the corporate debtor subject to prescribed conditions and duties to protect and preserve value and run the business as a going concern. Management must not act prejudicially to creditors or fraudulently and must obtain committee approval for transactions above committee thresholds and other specified matters. The corporate debtor, with the resolution professional, must provide monthly reports to the committee on material legal proceedings, key contracts and other matters materially affecting the business, while the resolution professional may request operational information, inspect assets and premises, and review compliance and litigation details.
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