Stakeholders' Consultation Committee

ResBazz

Administrator
Regulation 31 A has been introduced in the Liquidation Regulations to provide that a stakeholders' consultation committee is required to be constituted by the liquidator within 60 days from the liquidation commencement date, to advice the liquidator on matters relating to the sale of assets of the corporate debtor. However, the advice, which is required to be cleared by 66% voting share of the committee, shall not be binding on the liquidator.

The maximum representation on the stakeholders' consultation committee has been reserved for the secured financial creditors who have relinquished their security interest, followed by unsecured financial creditors, with the shareholders being last in the order of priority.
 

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