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Consider the following statements about the committee of creditors in liquidation after the 2026…

Section 21(11) states that the CoC "shall also supervise the conduct of the liquidation process by the liquidator", and section 34A lets it replace the liquidator by not…

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Consider the following statements about the committee of creditors in liquidation after the 2026 amendment:
(i) The committee of creditors constituted in the CIRP supervises the conduct of the liquidation process by the liquidator.
(ii) The committee may replace the liquidator by a vote of not less than sixty-six per cent of the voting share.
(iii) The Board may specify other classes of creditors who may attend committee meetings during liquidation with a right to vote.
(iv) The committee of creditors is dissolved as soon as the liquidation order is passed.
Which of the statements are correct?

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Answer and explanation

Correct answer A

Section 21(11) states that the CoC "shall also supervise the conduct of the liquidation process by the liquidator", and section 34A lets it replace the liquidator by not less than sixty-six per cent of the voting share. The proviso to section 21(11) allows the Board to specify other classes who may attend but who "shall not have any right to vote", so (iii) is wrong, and (iv) is wrong because the committee continues. Hence "Only (i) and (ii)" are correct.

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