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

A newly set up insolvency professional agency applies for registration. Which of the following is a principle the Board must have regard to under the Code while registering it?

The Board must have regard to promoting good professional and ethical conduct amongst insolvency professionals, one of the principles listed in section 200. Other principles include protecting debtors' and creditors' interests and promoting agency growth. Fee maximisation or limiting agencies is not a stated principle.

  1. AMaximising the fee income of the Board from registrations
  2. BPromoting good professional and ethical conduct amongst insolvency professionalsCorrect
  3. CRestricting the number of agencies to avoid competition
  4. DEnsuring that members are drawn only from a single profession

Explanation

Section 200 lists the principles, including promoting professional development and regulation, competent services, good professional and ethical conduct, protecting interests of debtors and creditors, and growth of agencies. Fee maximisation, restricting agencies and single-profession membership do not appear; indeed the Board may specify professionals from finance, law, management or insolvency.

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