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

Meera Iyer, a chartered accountant, has been advising lenders on stressed assets and now starts accepting appointments as an interim resolution professional in a corporate insolvency matter. She is a member of an insolvency professional agency but has never applied to the Insolvency and Bankruptcy Board of India for registration. Under the Code, what is her position?

Meera cannot act as an insolvency professional. Section 206 requires a person to be both enrolled as a member of an insolvency professional agency and registered with the Board. Agency membership alone, or a professional qualification, does not satisfy the registration requirement.

  1. AShe may act, because membership of an insolvency professional agency alone is sufficient
  2. BShe may act, because being a chartered accountant qualifies her automatically
  3. CShe may act only if the Adjudicating Authority approves her individually
  4. DShe cannot render services as an insolvency professional, as she must be both enrolled with an agency and registered with the BoardCorrect

Explanation

Section 206 bars any person from rendering services as an insolvency professional unless enrolled as a member of an insolvency professional agency and registered with the Board. Meera satisfies only the first condition. Option A treats one condition as enough, which is wrong because both are required.

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