CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency
Ganga Insolvency Professionals Agency, a registered agency, drafts its bye-laws. Which statement correctly describes the requirement under the Code?
An insolvency professional agency must make its bye-laws after obtaining the Board's approval, and they must be consistent with the model bye-laws specified by the Board. Passing them internally and merely informing the Board, or departing from the model, is not permitted.
- ABye-laws take effect once the agency's governing body passes them, with the Board informed afterwards
- BBye-laws must be made after obtaining the Board's approval and be consistent with the model bye-laws specified by the BoardCorrect
- CBye-laws must be approved by the National Company Law Tribunal and may differ from the model bye-laws
- DBye-laws are optional if the agency follows the regulations
Explanation
Each agency must make bye-laws, subject to the Code, rules and regulations, after obtaining Board approval, and consistent with the Board's model bye-laws. Non-compliance with bye-laws is also a ground for suspension or cancellation of registration.
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