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

Mr. Rohan Mehta, a chartered accountant, wishes to act as an insolvency professional under the Insolvency and Bankruptcy Code, 2016. He has not yet joined any insolvency professional agency. Which statement correctly describes the sequence the Code requires?

Under the Code, a person first obtains membership of an insolvency professional agency and only then registers with the Insolvency and Bankruptcy Board, within the time, manner and fee specified by regulations. Registration before membership is not the prescribed sequence.

  1. AHe must first obtain membership of an insolvency professional agency and then register himself with the BoardCorrect
  2. BHe must first register with the Board and then seek membership of an insolvency professional agency
  3. CHe may register with the Board or join an agency, as he chooses, since either route is enough
  4. DHe need not register with the Board if he is already a chartered accountant

Explanation

Section 207(1) says every insolvency professional shall, after obtaining membership of any insolvency professional agency, register himself with the Board. Membership therefore comes first. The option reversing the order is wrong because registration with the Board follows membership.

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