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

Anita Rao is resolution professional in a pre-packaged insolvency resolution process. She wants to review the corporate debtor's records and collect information to check for avoidable or fraudulent transactions. Which statement correctly reflects her powers?

She may access all books and records, electronic records from an information utility, and documents held by Government authorities and auditors. She may collect information on operations and payments for the previous two years from the pre-packaged commencement date, to detect avoidable or fraudulent transactions.

  1. AShe may access the debtor's books and also its electronic records from an information utility, and collect information on business operations and payments for the previous two years from the pre-packaged insolvency commencement dateCorrect
  2. BShe may access only records the promoters voluntarily hand over, and the look-back is five years
  3. CShe may access the books but not records held by statutory auditors or Government authorities
  4. DShe may collect information only about the list of assets and liabilities, with no review of past operations

Explanation

Section 54F(3) empowers her to access all books and records, electronic records from an information utility, and records with Government authorities and statutory auditors. She may also collect information on business operations and financial and operational payments for the previous two years from the commencement date, plus assets and liabilities as on the initiation date. The other options misstate these powers.

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