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

Mr. Raghav Iyer, a member of an insolvency professional agency, is handling a corporate insolvency resolution process for Kaveri Textiles Ltd. Which of the following describes a function the Code assigns to an insolvency professional once a process has been initiated?

Under section 208(1), an insolvency professional must take necessary actions in the listed matters, including CIRP and liquidation of a corporate debtor firm. Granting membership, setting conduct standards and publishing member lists are functions of the insolvency professional agency under section 204.

  1. ATo take such actions as may be necessary in the matters listed in the Code, including the corporate insolvency resolution process and liquidation of a corporate debtor firmCorrect
  2. BTo grant membership to persons who fulfil the requirements of the agency's bye-laws
  3. CTo lay down standards of professional conduct for all members of the agency
  4. DTo publish the list of members and the performance of members of the agency

Explanation

Section 208(1) makes it the function of an insolvency professional to take necessary actions in the listed processes, such as fresh start, individual insolvency resolution, CIRP, pre-packaged process, individual bankruptcy and liquidation. The other options (granting membership, laying down conduct standards, publishing member information) are functions of an insolvency professional agency under section 204, not of the professional.

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