Azerbaijan proposes to expand powers of creditors’ committees
Baku, Azerbaijan, Jan. 30
Azerbaijan proposes to expand the powers of the creditors’ committees of banks which are being liquidated.
The corresponding proposal was reflected in the draft amendments to the Law on Banks, prepared by Bank Standard's creditors' committee.
According to the draft, the establishment of the creditors’ committees must be mandatory. Moreover, the committee will be able to make decisions on the bank liquidation process if they do not contradict the court decision, the adopted bankruptcy procedure or the liquidator's activity.
The draft amendments also imply that the creditors' committee will directly monitor the activity of the bank liquidator and participate in litigation as a third party.
According to the current legislation, the creditors’ committee of a liquidated bank can be established only if the court recognizes the need for such a step. The creditors do not have the right to intervene in the liquidation process.