https://www.taxtmi.com/highlights?id=104391 Related-party status under the IBC extends to indirect corporate control through a subsidiary chain. Section 5(24)(i), read with the Companies Act definitions incorporated through Section 3(37), recognises a corporate debtor as a step-down subsidiary where an upstream holding company controls it through another subsidiary; direct shareholding is not required. Board-composition control is an independent basis for related-party classification under Section 5(24)(l), supported by appointment rights, voting arrangements, management rights and substantive control evidence. A related financial creditor is excluded from representation, participation and voting in the Committee of Creditors under the first proviso to Section 21(2), while remaining able to pursue adjudication of its claim. en-us Wed, 30 Sep 2026 11:55:53 +0530 Wed, 30 Sep 2026 11:55:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=104391 Related-party status under the IBC extends to indirect corporate control through a subsidiary chain. Section 5(24)(i), read with the Companies Act definitions incorporated through Section 3(37), recognises a corporate debtor as a step-down subsidiary where an upstream holding company controls it through another subsidiary; direct shareholding is not required. Board-composition control is an independent basis for related-party classification under Section 5(24)(l), supported by appointment rights, voting arrangements, management rights and substantive control evidence. A related financial creditor is excluded from representation, participation and voting in the Committee of Creditors under the first proviso to Section 21(2), while remaining able to pursue adjudication of its claim. Highlights IBC Wed, 30 Sep 2026 11:55:53 +0530 https://www.taxtmi.com/highlights?id=104391