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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

An insolvency professional, Mr. Rohan, has repeatedly violated the agency's bye-laws on conduct. Which action may his insolvency professional agency itself take against him under the Code's list of agency functions?

The agency may suspend or cancel Mr. Rohan's membership on the grounds set out in its bye-laws. Section 204(e) gives it this function. Cancelling registration, making regulations on standards and exercising civil court powers are Board powers under section 196.

  1. ASuspend or cancel his membership on the grounds set out in its bye-lawsCorrect
  2. BCancel his registration with the Board and levy a registration fee
  3. CExercise civil court powers to seize his books and records
  4. DSpecify by regulations the standards for the functioning of all insolvency professionals

Explanation

Section 204(e) empowers the agency to suspend or cancel membership of its members on grounds set out in its bye-laws. Cancelling registration, making regulations on standards and civil court powers belong to the Board under section 196.

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