CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP
An insolvency professional agency receives a complaint from a creditor that member Kavita Rao ignored basic diligence as resolution professional. The agency's bye-laws list neglect of duty as ground for suspension. Which combination best describes what the agency may do under the Code's list of its functions?
The agency may redress the creditor's grievance, monitor the member's performance, and suspend or cancel her membership on grounds set out in its bye-laws. These are listed agency functions. Cancelling Board registration is not among them, and suspension of membership is not reserved to the Board.
- ARedress the creditor's grievance, monitor Kavita's performance, and suspend or cancel her membership on grounds in its bye-lawsCorrect
- BCancel her registration with the Board directly, since agencies hold Board powers
- COnly forward the complaint to the Adjudicating Authority without any action of its own
- DRedress the grievance but not suspend, as suspension is reserved for the Board alone
Explanation
Section 204 lists functions of an agency: monitor the performance of members (c), suspend or cancel membership on grounds in its bye-laws (e), and redress grievances of consumers against members (f). Cancelling Board registration is not an agency function listed there, and the agency need not only forward the complaint. Option four is wrong because suspension of membership is an agency function.
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