Managing the Committee of Creditors:
A meeting of the CoC is organized
by the RP on an on-going basis throughout the CIRP process. The purpose of the
meeting is to update the members of the CoC on the status of the insolvency
process and operations, while discussing the key issues, challenges faced and to
take votes upon the necessary items as required by the code. To organize and
manage a CoC is a 3 steps process that covers steps to be takenby the RP
Pre-CoC, during the CoC and Post CoC.
Managing Pre-CoC: To call upon a meeting of the CoC, the RP needs
to send a seven days’ notice in writing to every participant. Along with the
notice, the RP also needs to send an agenda note that contains the key items
that need to be discussed in the meeting and voted upon by the CoC. Under
Section 28 of the code, there are certain actions that need CoCs approval
before the RP can take any action. Notice also mentions the date, time and
venue of the meeting.
The RP is expected to apprise the
CoC on the update that may have occurred between 2 CoCs. Status update includes
key communications & meetings with various authorities, business update of
the corporate debtor and other updates as decided by the RP.
As per the code, in case all the
members of the committee are not present, then voting is to be done in an
electronic manner. Arrangements for e-voting are also required in such cases.
The RP needs to provide a secure voting platform to the voters.
Other details like video recording
(as mandated by the code), ID proofs, attendance sheets, roll call sheets are
also taken care of at this stage for the smooth conduct of the meeting.
Managing the CoC meeting: Before the CoC meeting begins, the RP also
ensures that an attendance sheet is signed by the attendees, so as to keep a
record of the creditors attending the meeting. Thereafter, the RP begins the
meeting by taking a roll call and apprising the members by running through the
presentation on status of the Company and discuss the agenda items that require
Managing post-CoC: In case the voting is to be held by electronic
means, the minutes of the meeting are to be sent to the members of the CoC
within 48 hours of the meeting. The minutes should specifically disclose the
particulars of the participants who attended the meeting in person/video
conferencing/other audio visual means.
The e-voting needs to be
concluded within 24 hours of sending the minutes to the CoC. Results of the
voting are to be circulated within 24 hours of the closing of the voting. The
RP is expected to proceed as per the results of the voting in conducting the
resolution process of the corporate debtor.