Question

Under the Insolvency and Bankruptcy Code, 2016, which of the following is NOT a priority in the order of payment to creditors during the Corporate Insolvency Resolution Process (CIR

Q: Answer-Under the Insolvency and Bankruptcy Code, 2016, which of the following is NOT a priority in the orde...

The order of priority during the distribution of assets in the event of liquidation under IBC is as follows Insolvency Resolution Process Costs highest priority Secured creditors , including their dues after they are paid, if there are any remaining funds Operational creditors , including employees and workmen such as wages, unpaid dues Unsecured creditors such as suppliers and bondholders Equity shareholders last in line for payment Preference shareholders are not prioritized in the liquidation process under the IBC, as they rank after creditors but before equity shareholders .