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

Meridian Insolvency Professionals Agency is drafting its bye-laws based on the Insolvency and Bankruptcy Board of India's model bye-laws. Its governing board asks what the model bye-laws may provide on disciplinary matters concerning members. Which of the following is within the matters on which the Board may make model bye-laws under Section 196(2)?

The model bye-laws may cover the manner of conducting disciplinary proceedings against members and imposing penalties. Section 196(2)(p) says so. Cancelling registrations and levying fees on information utilities are the Board's own functions, and imprisonment is outside bye-laws altogether.

  1. AThe manner of conducting disciplinary proceedings against members and imposing penaltiesCorrect
  2. BThe power to sentence a member to imprisonment after trial
  3. CThe power to cancel a member's registration as an insolvency professional
  4. DThe power to levy registration fee on information utilities

Explanation

Section 196(2)(p) lists the manner of conducting disciplinary proceedings against members and imposing penalties as a matter for model bye-laws. Cancelling registration and levying fees on information utilities are functions of the Board under Section 196(1), not model bye-law matters. Imprisonment is not a bye-law matter at all.

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