Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Mr. Arvind Rao, a registered insolvency professional, is appointed as resolution professional in a corporate insolvency resolution process for a Pune manufacturer. A colleague asks which standard governs how he must perform his functions and duties. Under the Insolvency and Bankruptcy Code, 2016, which is correct?

The resolution professional must perform his functions and duties in compliance with the code of conduct provided under section 208 of the Code. Creditor instructions, company law bye-laws or a self-set standard cannot replace this statutory conduct standard.

  1. AHe must comply with the code of conduct provided under section 208Correct
  2. BHe must follow only the directions of the committee of creditors
  3. CHe must follow only the bye-laws of the Companies Act, 2013
  4. DHe is free to set his own standard if the Adjudicating Authority is informed

Explanation

The Code provides that the resolution professional performs his functions and duties in compliance with the code of conduct provided under section 208. Creditor directions do not replace this statutory standard, so the other options are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Insolvency shows your real accuracy, how long you take and where you lose marks.

Practise InsolvencyFree diagnostic mock

More Insolvency questions