Voting by Committee of Creditors under IBC Regulation

Voting by Committee of Creditors under IBC Regulation

• circulate the minutes of the meeting by electronic means to all members of the committee and the authorised representative, if any, within forty-eight hours of the conclusion of the meeting; and
• Seek a vote of the members who did not vote at the meeting on the matters listed for voting, by electronic voting system in accordance with regulation 26 where the voting shall be kept open for at least twenty-four hours from the circulation of the minutes.

Authorised Representative (AR) of Financial Creditors under IBC Regulation – Sec 25A

• AR to attend and vote on behalf of financial creditors with prior voting instruction of the creditors.
• Authorised Representative to circulate the agenda and minutes of the meeting of CoC to the creditors he represents.
• AR shall cast his vote on behalf of the financial creditor he represents as per their instruction.
• if the AR represents several financial creditors, then he shall cast his vote in respect of each financial creditor in accordance with instructions received from each financial creditor, to the extent of its voting share.

Voting for Creditors in a Class under IBC Regulation  Reg 25 (6)

• Authorised Representative shall circulate minutes of the meeting received from RP amongst the creditors in a class
• Voting window to be announced at least 24 hours before voting window opens
• Keep the voting window open for at least 12 hours.

Voting through electronic means under IBC Regulation Reg 26

Resolution Professional shall:

• provide each member of the committee the means to exercise its vote by either electronic means or through electronic voting system;
• At the conclusion of a vote, announce and make a written record of the summary of the decision taken on a relevant agenda item along with the names of the members of the committee who voted for or against the decision, or abstained from voting;
• circulate a copy of the record to all participants by electronic means within twenty four hours of the conclusion of the voting
• At the end of the voting period, the voting portal shall be blocked.
• Resolution Professional to prepare summary of the decision taken on relevant agenda item along with names of the Committee members who voted for or against the matter or abstained from voting.
• The summary shall be circulated to all the participants within 24 hours of the conclusion of the voting.

Provisions relating to minutes of the meeting under IBC Regulation

• IRP/Resolution Professional to record the proceeding and prepare the minutes of the meeting [Reg.23(3)(c)
• Resolution Professional to ensure minutes are prepared for each meeting. Minutes shall disclose the particulars of participants who attended in person and those who attended through video conferencing. [Reg. 24 (6)]
• RP to circulate minutes of the meeting to all participants by electronic means within forty eight hours of the said meeting [Reg. 24 (7)]
• Authorised Representative shall circulate minutes of the meeting to creditors in a class and announce voting window at least 24 hours before it opens [Reg 26 (6)].

Voting share required under various sections/ regulations

Section/ Regulation	Matter concerning	Minimum vote share required (%_
Section 22	Appointment of resolution professional replacing the existing IRP/ resolution professional	66
Section 12	One time extension for CIRP period beyond 180 days	66
Section 12A/ Reg 30A(4)	Withdrawal of application	90
Section 28	Matters listed under section 28	66
Reg 29(2)	Sale of the assets by resolution professional outside the ordinary course of business	66
Section 30(4)	Approval/ rejection of Resolution Plan	66
	All other matters	51

Voting by Committee of Creditors under IBC Regulation Reg 25

• Actions listed in section 28(1) shall be considered at meeting of Committee of Creditors
• An Actions other than those listed in section 28(1) may be considered in the meeting
• Resolution Professional shall:
  • take a vote of the members of the committee present in the meeting, on any item listed for voting after discussion on the same.
  • Resolution Professional to then announce the decision taken on items along with the names of the members of the committee who voted for or against the decision, or abstained

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