a) Valuations under the Code
IBBI issued a circular on 17 October, 2018 directing that with effect from 1 February, 2019, no Insolvency Professional shall appoint a person other than a Registered Valuer to conduct any valuation under the Code or any of the regulations made thereunder.
IBBI also clarified that every valuation required under the Code or any of the regulations made thereunder shall be conducted by a Registered Valuer (RV), that is, a valuer registered with IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017.
b) Voting in the Committee of Creditors
IBBI issued a circular on 14th September, 2018 clarifying that in the meeting of Committee of Creditors (CoC), the voting power of the member in CoC is based on the amount of admitted claim in respect of the financial debt. Further the financial Creditor whose claim has not been admitted, is included in the CoC as member, as and when its claim is admitted.
It is also elucidated by the IBBI that the inclusion of financial creditor in the CoC as a member subsequent to constitution of the CoC does not affect the validity of any decision taken by the CoC prior to such inclusion.
Thus, a person, who is not a member of the CoC, does not have voting right in the CoC. A person, who is not a member of the CoC, cannot be regarded as one who has voted against a resolution plan or abstained from voting.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.