The insertion of Section 29A provided further fillip to the notion that an insolvent debtor has to be protected from its own management, if required, for the maximisation of value from the debtor to the society as a whole.
Thus, for the first time, the promoters faced with the possibility of losing control of their respective companies if financial stress is not addressed in a timely and comprehensive manner. The Code also established Committee of Creditors as a public institution with the paramount responsibility of ensuring maximisation of value for stakeholders during the resolution of a corporate debtor.