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CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Insolvency

Gangotri Steel Ltd has Indian and overseas creditors. Its IP, Ms. Iyer, is a member of an insolvency professional agency (IPA). A foreign creditor asks what the Board must keep in mind when registering such agencies. Which of the following is among the principles the Board must have regard to under the Code?

One of the principles the Board must have regard to while registering insolvency professional agencies is promoting good professional and ethical conduct amongst insolvency professionals. Section 200 does not promise creditor recovery or require foreign qualifications, so those options are incorrect.

  1. APromoting good professional and ethical conduct amongst insolvency professionalsCorrect
  2. BGuaranteeing full recovery to every foreign creditor
  3. CRestricting membership to professionals who hold foreign qualifications
  4. DEnsuring that every agency functions only for corporate debtors

Explanation

Section 200 lists the principles for registering insolvency professional agencies, including promoting good professional and ethical conduct among insolvency professionals (clause (c)). Guaranteed recovery, foreign qualifications and corporate-only focus do not appear.

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