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CS Professional · Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

A complaint is received that Meera Associates, an insolvency professional who is a member of an insolvency professional agency, breached the standards of professional conduct. Which body, by the Code's statement of agency functions, must lay down those standards of professional conduct for its members and redress grievances against them?

The insolvency professional agency of which the professional is a member. Section 204 requires an agency to lay down standards of professional conduct for its members and to redress grievances against them. The Adjudicating Authority, committee of creditors and information utilities are not assigned these functions there.

  1. AThe Adjudicating Authority, through its orders in each case
  2. BThe insolvency professional agency of which the professional is a memberCorrect
  3. CThe committee of creditors of the corporate debtor
  4. DThe information utility holding the debtor's records

Explanation

Section 204 lists the functions of an insolvency professional agency, including laying down standards of professional conduct for its members (clause b) and redressing grievances against members (clause f). The committee of creditors and information utilities have no such role under this section.

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