The Insolvency and Bankruptcy Code, 2016 (IBC) is a landmark legislation that aims to provide a speedy and efficient resolution of insolvency and bankruptcy cases in India. One of the key features of the IBC is the formation of a Committee of Creditors (CoC) that comprises of all the financial creditors of the corporate debtor undergoing insolvency resolution process. The CoC has the ultimate authority to decide the fate of the corporate debtor, whether to approve a resolution plan or initiate liquidation.
The CoC takes its decisions through voting, either in physical meetings or through electronic means. The voting process is governed by the provisions of the IBC and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations). The CIRP Regulations lay down various rules and guidelines for convening and conducting meetings of the CoC, appointing authorized representatives for financial creditors, voting by creditors in a class, voting through electronic means, recording and circulating minutes of the meetings, etc.
In this blog post, we will discuss some of the best practices and guidelines for e-voting under IBC and how Pollbag, a leading e-voting platform in India, ensures compliance with them.
What is e-voting under IBC?
E-voting under IBC refers to the process of casting votes by the members of the CoC through electronic means or through an electronic voting system. E-voting can be done either during a physical meeting or after a meeting. E-voting is mandatory for creditors who are not present in a meeting or who do not vote in a meeting. E-voting is also mandatory for creditors in a class who are represented by an authorized representative.
E-voting under IBC has several advantages over physical voting, such as:
It saves time and cost of travel and attendance for the creditors.
It enables faster and easier counting and verification of votes.
It ensures accuracy and transparency of the voting results.
It reduces the scope of disputes and litigation over voting outcomes.
It facilitates participation and engagement of all creditors in the decision-making process.
What are the best practices and guidelines for e-voting under IBC?
The CIRP Regulations prescribe various best practices and guidelines for e-voting under IBC, such as:
The resolution professional (RP) shall provide each member of the CoC with the means to exercise its vote by either electronic means or through an electronic voting system.
The RP shall announce and make a written record of the summary of the decision taken on each agenda item along with the names of the members who voted for or against the decision or abstained from voting.
The RP shall circulate a copy of the record to all participants by electronic means within 24 hours of the conclusion of the voting.
The RP shall circulate the minutes of the meeting by electronic means to all members of the CoC and the authorized representative, if any, within 48 hours of the conclusion of the meeting.
The RP shall seek a vote of the members who did not vote in the meeting on the matters listed for voting by electronic voting system where the voting shall be kept open for at least 24 hours from the circulation of the minutes.
The RP shall ensure that every creditor in a class has access to an electronic voting system through its authorized representative who shall cast its vote as per its instruction.
The RP shall ensure that every creditor has one vote for each rupee of its claim admitted by him.
The RP shall ensure that every creditor can change its vote, cast multiple votes, or abstain from voting until closure of voting period.
The RP shall ensure that every creditor can view its vote after closure of voting period.
How does Pollbag ensure compliance with these best practices and guidelines?
Pollbag is a secure, reliable, and user-friendly e-voting platform that enables online elections for various purposes, such as homeowners’ associations, professional associations, not-for-profit organizations, etc. Pollbag also offers e-voting services for insolvency professionals who need to conduct e-voting for creditors under IBC.
Pollbag ensures compliance with all the best practices and guidelines for e-voting under IBC by providing:
A robust and scalable e-voting system that can handle large number of voters and votes.
A simple and intuitive user interface that allows easy creation and management of online polls.
A secure and encrypted data transmission that protects voter identity and vote secrecy.
A transparent and auditable voting process that records every vote cast and generates instant results.
A customizable and flexible voting system that allows setting various parameters such as voting period, quorum, majority, etc.
A dedicated support team that provides assistance and guidance to insolvency professionals and creditors throughout the e-voting process.
Pollbag is the preferred choice of many insolvency professionals and creditors who have used it for e-voting under IBC. Pollbag has successfully conducted e-voting for several high-profile and complex insolvency cases in India, such as Jet Airways, Videocon, DHFL, Reliance Communications, etc.
If you are an insolvency professional or a creditor who needs to conduct e-voting under IBC, you can trust Pollbag to provide you with the best e-voting solution that meets your needs and complies with the law. To know more about Pollbag and its e-voting services for IBC, visit Pollbag website or contact us manoj@pollbag.com.
