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Preface: This post was originally published in 2018 and has been updated on November 06, 2025, to provide you with the most current and accurate information.
Corporate Insolvency Resolution Process (CIRP) is a legal procedure under Insolvency and Bankruptcy Code (IBC) 2016. It is a mechanism designed to revive a financially distressed company. During CIRP, a decision-making body is formed to manage the assets of the corporate debtor and resolve their debts.
This decision-making body is known as the Committee of Creditors (CoC). Throughout the CIRP, the CoC plays a central and supreme role. In this blog post, we shall explain to our readers what the Committee of Creditors under IBC is.
A Committee of Creditors meaning can be explained as a decision-making body in bankruptcy and insolvency proceedings. It consists of financial creditors of the company. The formation of committee of creditors takes place immediately after the initiation of the insolvency process.
The primary role of Committee of Creditors under IBC is to evaluate and approve a resolution plan to revive the company or maximize asset recovery for creditors. CoC is a key authority that possesses commercial power to decide the fate of company through approval or rejection of resolution plans.
The CoC is responsible for the following:
Making decisions in the routine tasks associated with the Corporate Insolvency Resolution Process (CIRP).
Approving or rejecting the insolvency resolution plan.
Deciding upon the liquidation of the corporate debtor.
Protecting the interests of all the creditors it represents, including its own members.
Approving major transactions and decisions like the sale of assets or entering into new contracts.
Ensuring the insolvency process is in compliance with the relevant laws.
Making sure that every creditor gets fair treatment during the course of bankruptcy process.
The CoC meeting, or committee of creditors meeting, is a crucial gathering during CIRP. In this meeting, the financial creditors evaluate and vote on a resolution, make important business decisions, monitor the insolvency professional and give a nod to process costs. The meeting of creditors is governed by Section 24 of IBC. According to this section, this meeting must be convened/conducted by the resolution professional (RP).
The RP must issue a notice of each CoC meeting to the CoC members, who are primarily all financial creditors. They can also include other relevant parties in the meeting, such as operational creditors (if their combined claims are 10% or more of total admitted debt). It is important to note that only the financial creditors have the right to vote in CoC meetings.
CoC notice refers to a formal notification issued by the resolution professional (RP) to the CoC members and other relevant parties regarding an upcoming meeting to discuss the resolution plan for a debtor.
Below, we have outlined the contents of the notice for a CoC:
The notice must include information about the venue of the meeting, the time of the meeting and the date of the meeting. Furthermore, options are to be made available for the participants to join the meeting through video conferencing or other audiovisual means. In such cases, the notice shall provide the participants the information about such options.
Information that the participants can either attend the meeting themselves or through an authorized representative. In the case where the authorized representative individual is to be present at the meeting, there should be prior information sent to the other representatives and the NCLT about the same.
The Notice of the meeting shall entail the following information as well:
Meeting’s agenda with the following information:
List of matters that are to be a point of discussion in the meeting
List of issues that are going to need the committee to exercise their voting power
Copies of all the documents that are relevant to the agenda of the meeting.
The notice has to state that the voting shall not be conducted for a member who is not present at the meeting.
Other details that the notice shall provide are the following:
The process and the manner of the voting process. This shall include the electronic process, the means of voting and the time of voting. The time shall include the time period during which the voting is to be cast.
Login ID and the password to the participants of the meeting so that the voting process using the electronic method is secure and unbiased.
Contact details of the person that addresses the queries in relation to the voting process.
CoC stands for Committee of Creditors. It plays an important role in ensuring that the CIRP process is fair, transparent and efficient. The members of CoC are financial creditors of the corporate debtor. The CoC possesses the authority to decide the fate of a financially distressed company. The RP is responsible for convening all meetings of the CoC and issuing the notice for them under the Insolvency and Bankruptcy Code 2016.
Q1. Which law governs insolvency and bankruptcy proceedings for companies in India?
A. The Insolvency and Bankruptcy Code 2016 governs insolvency and bankruptcy proceedings for companies in India.
Q2. Who are the members of CoC?
A. The members of CoC are financial creditors of the corporate debtor.
Q3. Who shall conduct the meetings of committee of creditors?
A. The Resolution Professional (RP) shall conduct the meetings of CoC, according to Section 24 of the Insolvency and Bankruptcy Code 2016.
Q4. What is CIRP?
A. Corporate Insolvency Resolution process, abbreviated as CIRP, is a process established under IBC 2016 to deal with financial distress and insolvency of a company. During this process, CoC consisting of financial creditors is given the authority to determine the financially distressed company’s future.
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