TaxTMI 
TaxTMI 
Composition of the Committee of creditors [ Section 21 ]
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.... financial creditors as part of a consortium or agreement, each financial creditors shall be part of the committee of creditors and their voting share is determined on the basis of the financial debts owed to them. Where there is no financial debt or where all Financial creditors (FC) are related parties of the corporate debtor (CD), the committee of creditors CoC consists of operational creditors only, comprising: the 18 largest operational creditors by value, one representative elected by all workmen and one representative of employees. Regulation 16B provides that where the corporate debtors has only creditors in a class and no other financial creditors eligible to join the committee of creditors, the committee of creditors shall consis....
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.... creditor,- (a) such person shall be a financial creditor to the extent of the financial debt owed by the corporate debtor, and shall be included in the committee of creditors, with voting share proportionate to the extent of financial debts owed to such creditor; (b) such person shall be considered to be an operational creditor to the extent of the operational debt owed by the corporate debtor to such creditor. (5) Where an operational creditor has assigned or legally transferred any operational debt to a financial creditor, the assignee or transferee shall be considered as an operational creditor to the extent of such assignment or legal transfer. Consortium [ Section 21(6) ] Where the terms of the financial debt extended as part o....
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....presentative who shall be appointed by the Adjudicating Authority prior to the first meeting of the committee of creditors; * (c) Where a financial debt is represented by a guardian, executor or administrator, such person shall act as authorised representative on behalf of such financial creditors, and such authorised representative under clause (a) or clause (b) or clause (c) shall attend the meetings of the committee of creditors, and vote on behalf of each financial creditor to the extent of his voting share. * Class of Creditors * Section 21(6A) of the IBC states that a "class of creditors" can be represented by an Authorized Representative (AR). The interim resolution professional (IRP) is responsible for ensuring the AR's appoin....