Clarification regarding approval of resolution plans under section 30 and 31 of Insolvency and Bankruptcy Code, 2016

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....5.10.2017 To The Chairperson, IBBI All Regional Directors All Registrar of Companies All Stakeholders Subject: Clarification regarding approval of resolution plans under section 30 and 31 of Insolvency and Bankruptcy Code, 2016 Sir/Madam, Clarification has been sought by stakeholders as to whether approval of shareholders/members of the corporate debtor/company is required ....

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....ailed procedure from the time of receipt of resolution plan by the resolution professional to its approval by the Adjudicating Authority and there is no requirement for obtaining approval of shareholders/members of the corporate debtor during this process. 3.  It is understood that the requirement of section 30(2) (e) of the Code is to ensure that the resolution plan(s) considered and appr....

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....ing on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan. The notes to clauses appended to the Insolvency and Bankruptcy Code, 2015 (Bill) in respect of such clause explains: "Therefore, if a plan requires stakeholders to do or not do certain actions for the successful implementation of a plan, it shall be binding on all t....