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CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

Meera Iyer, an insolvency professional registered with an insolvency professional agency (IPA), is acting in a corporate insolvency resolution process of Kaveri Textiles Ltd. Under the Code, which of the following is part of the code of conduct she must follow as an insolvency professional?

The insolvency professional must take reasonable care and diligence in performing duties, as required by the code of conduct in Section 208(2)(a). The Code does not demand IPA pre-approval of filings, and records must go to the Board and the IPA, not only the Adjudicating Authority.

  1. ATake reasonable care and diligence while performing her dutiesCorrect
  2. BObtain prior approval of the IPA before every filing with the Adjudicating Authority
  3. CSubmit the records of the proceedings only to the Adjudicating Authority
  4. DAllow inspection of her records only if the Board specifically directs so

Explanation

Section 208(2)(a) requires every insolvency professional to take reasonable care and diligence while performing his duties. The Code does not require prior IPA approval of each filing. Records of proceedings before the Adjudicating Authority go to both the Board and the IPA, not only to the Adjudicating Authority, and the IPA is entitled to inspect records.

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