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

Mr. Arjun Mehta, an insolvency professional, is appointed as resolution professional in a corporate insolvency resolution process of Kaveri Textiles Ltd. A creditor asks which instrument sets the standard of conduct he must follow while performing his functions and duties. Under the Insolvency and Bankruptcy Code, 2016, which is correct?

The professional must comply with the code of conduct provided under section 208 of the Code. It applies to every insolvency professional and is not set by creditors, the debtor's articles or the Adjudicating Authority case by case.

  1. AThe code of conduct provided under section 208Correct
  2. BThe code of conduct framed by the committee of creditors
  3. CThe articles of association of the corporate debtor
  4. DThe code of conduct set by the Adjudicating Authority in each case

Explanation

The standard of conduct provisions (sections 93, 120 and 143 for individual processes) state that the professional performs functions and duties in compliance with the code of conduct under section 208. Neither creditors nor the debtor's articles nor the Adjudicating Authority frame this code.

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