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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Anita Rao, an insolvency professional, is named in an application by a corporate debtor for a pre-packaged insolvency resolution process, and her name as proposed resolution professional is approved by the creditors under Section 54A(2)(e). Before the pre-pack process formally commences, what does Section 208(1A) provide?

Once her name is approved as resolution professional under Section 54A(2)(e), Anita must take the actions necessary to perform her functions and duties before the pre-packaged insolvency resolution process is initiated. Section 208(1A) therefore extends her function to the pre-initiation stage.

  1. AShe has no function until the process begins
  2. BShe must take actions necessary to perform her functions and duties before the pre-packaged process is initiatedCorrect
  3. CShe must file for liquidation first
  4. DShe must hand over records to the Central Government

Explanation

Section 208(1A) states that where the proposed resolution professional's name is approved under section 54A(2)(e), it is that professional's function to take such actions as may be necessary to perform functions and duties prior to initiation of the pre-packaged process. So the duty begins before commencement.

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