NEW DELHI: Providing clarity, the government today said resolution plans under the Insolvency and Bankruptcy Code does not require approval of the shareholders.
The clarification comes against the backdrop of concerns in certain quarters about the possibility of promoters of a company blocking insolvency resolution process under the existing provisions of the Code.
Provisions of Section 30 and 31 provide a detailed procedure from the time of receiving the resolution plan by the insolvency resolution professional to its approval by the adjudicating authority, the corporate affairs ministry said in a circular.
“… there is no requirement for obtaining approval of shareholders/ members of the corporate debtor during this pr…
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