IBC-SECTION 27 TO SECTION 29

Section 27 Replacement of resolution professional by committee of creditors

INSOLVENCY AND BANKRUPTCY CODE, SECTION 27 REPLACEMENT OF RESOLUTION PROFESSIONAL BY COMMITTEE OF CREDITORS

Process flow:- 

1. At any time during the CIRP process, COC is of the opinion that RP is required to replace with another RP.
2. COC may at the meeting, by a vote 66% of voting share then to replace RP to another RP and subject to a written consent from the proposed RP in the specified form.
3. COC shall forwards the name to NCLT.
4. After NCLT shall forwards the name to IBBI (board) for its confirmation and a RP shall be appointed in the same manner as laid down in section 16.
5. If any disciplinary proceedings are pending against the Proposed RP then RP shall continue till the appointment of another RP.

SECTION 27-CHART

Section 28 Approval of committee of creditors for certain actions

INSOLVENCY AND BANKRUPTCY CODE, SECTION 28 APPROVAL OF COMMITTEE OF CREDITORS FOR CERTAIN ACTIONS

1. RP shall not take any action during the CIRP without prior approval of the CIRP (without a vote 66% of voting share otherwise action will be void).
2. If RP raise any interim finance in excess of the amount as may be decided by COC in their meeting. 
3. RP create any security over the assets of the corporate debtor.
4. RP are change the capital structure of the corporate debtor then prior approval of COC.
5. If RP are change the ownership interest of the corporate debtor then prior approval of COC.
6. From any such accounts RP has given the instructions to financial institutions maintaining the accounts of the corporate debtor for a debit transaction in excess of the amount as may be decided by the COC in their meeting. 
7. RP has undertaken any related  party transaction, then prior approval of COC.
8. RP has amend any constitutional documents of the corporate debtor. 
9. RP delegates the authority to any other person with the prior approval of COC.
10. If RP has disposed of or permit the disposal of shares of any shareholder of the corporate debtor. 
11. RP makes any change in the management of the corporate debtor. 
12. RP makes changes in the appointment or terms of contract of statutory auditors or internal auditors of the corporate debtor.

SECTION 28-CHART

Section 29 Preparation of information memorandum

INSOLVENCY AND BANKRUPTCY CODE, SECTION 29 PREPARATION OF INFORMATION MEMORANDUM

RP shall provide all relevant information to resolution applicant and all relevant information its access by RP in physical or electronic from, provided such resolution applicant undertakes:- 

• Relating to confidentiality and insider-trading.

• Resolution applicant has to protect any intellectual property of the corporate debtor.

• Resolution applicant has not to share relevant information with third parties.

SECTION 29-CHART