Resolution Plan

A resolution plan is a proposal that aims to provide a resolution to the problem of the corporate debtor’s insolvency and its consequent inability to pay off debts. To ratify a resolution plan regarding the revival of a corporate defaulter, the committee of creditors (CoC) should pass the plan by a majority vote of not less than 66% of the voting share of the financial creditors.

A definition of the resolution plan was made after the 2019 amendment. As per the amendment, a resolution of corporate debtor as a going concern may also include the provisions for corporate restructuring, including by way of merger, amalgamation and demerger.

August 15, 2019
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