Protective Committee Law and Legal Definition

Protective committee means a group of security holders or preferred stockholders appointed on liquidation or reorganization of a corporation. They are appointed to protect and secure the interests and welfare of a certain class or all of the security holders. For example the bondholder’s protective committee shall protect the interest of the holders of bond. Generally, there can be three protective committees for the security holders of the debtor company, such as the lien bondholder's protective committee, income bondholders' protective committee, and funding bondholders' protective committee.