Report of The Insolvency Law Committee (2020) discussed the possibility of providing voting rights to operational creditors. However, it adopted a conservative approach and recommended that voting rights should only be bestowed to financial creditors for the foreseeable future. What was the reason to restrict voting rights to only financial creditors?
Report of The Insolvency Law Committee (2020) mentions all the three reasons to not provide voting rights to the operational creditors and noted that: ‘operational creditors may not be provided with voting rights at present.’ However, in due time assessment may be made to determine if institutional capacities have developed and operational creditors are equipped to take decisions on insolvency.