Meetings of the Committee of Creditors (CoC): Procedures and Quorums
The Committee of Creditors (CoC) is the central decision-making body in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). Effective functioning of the CoC hinges on well-defined procedures for its meetings, ensuring that decisions are made democratically and with proper representation. This module delves into the procedural aspects and quorum requirements for CoC meetings.
Convening CoC Meetings
The Resolution Professional (RP) is responsible for convening meetings of the CoC. Meetings can be called as and when required, or upon a request from members representing at least 33% of the voting rights. The IBC and related regulations prescribe specific timelines and notice periods for these meetings.
Quorum Requirements
A quorum is the minimum number of members required to be present for a meeting to be validly constituted and for decisions to be taken. For CoC meetings, the quorum is determined by the voting rights of the members present.
| Meeting Type | Quorum Requirement |
|---|---|
| First CoC Meeting | At least 33% of the total voting rights of creditors |
| Subsequent CoC Meetings | At least 33% of the total voting rights of creditors |
It's important to note that the quorum is based on the total voting rights of the creditors, not just the number of members present. This ensures that decisions reflect a significant portion of the financial interests involved.
Voting and Decision Making
Decisions in CoC meetings are made by a majority vote, with voting rights allocated based on the financial claim of each creditor. The IBC specifies different thresholds for various decisions.
Minutes of Meetings
Accurate and detailed minutes of CoC meetings are essential. The RP is responsible for preparing and circulating these minutes to all members within a specified timeframe. The minutes serve as a record of discussions, decisions made, and votes cast, and are crucial for transparency and accountability.
The minutes of CoC meetings are legally significant documents and can be used as evidence in subsequent legal proceedings.
Virtual Meetings and Technology
The IBC framework accommodates the use of technology for CoC meetings, including video conferencing and other electronic means. This flexibility ensures that meetings can be conducted efficiently, even when members are geographically dispersed, thereby facilitating timely decision-making.
Key Takeaways
7 days
33% of the total voting rights
66% of the voting rights
Learning Resources
The primary legislation governing corporate insolvency resolution in India. Essential for understanding the legal framework, including CoC meeting procedures.
Detailed regulations that provide the procedural specifics for CoC meetings, voting, and decision-making under the IBC.
The official website of the NCLT, which adjudicates insolvency matters. Provides access to orders, judgments, and procedural information relevant to CoC meetings.
A blog post explaining the role and powers of the CoC, including aspects of its meetings and decision-making processes.
An article detailing the critical provisions related to the Committee of Creditors, offering insights into their functioning and meetings.
Explains the duties of the Resolution Professional, including the responsibility to convene and manage CoC meetings.
A video tutorial that breaks down the functions of the CoC and the process of approving a resolution plan, touching upon meeting procedures.
A video discussing the powers and functions of the CoC, with emphasis on how decisions are made during their meetings.
Provides a general overview of the concept of a Committee of Creditors, which can offer broader context to its role in insolvency.
An overview of the IBC, providing context for the importance of CoC meetings within the larger framework of bankruptcy resolution.