Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Insolvency

Ms. Iyer is an insolvency professional seeking to handle a cross-border matter. Her peer argues about who sets the minimum eligibility requirements for registration of insolvency professionals and the standards for their functioning. Which view matches the Code?

The Board sets both. Section 196(1)(b) lets it specify minimum eligibility requirements for registration of insolvency professionals, and section 196(1)(d) lets it specify by regulations standards for their functioning. Agencies work within the Board's model bye-laws rather than independently.

  1. AThe Board specifies the minimum eligibility requirements for registration, and specifies by regulations standards for the functioning of insolvency professionalsCorrect
  2. BEach foreign court sets eligibility and standards for professionals appearing before it, and the Board has no role
  3. CThe Adjudicating Authority fixes eligibility case by case
  4. DThe insolvency professional agency alone fixes both, with no Board involvement

Explanation

Section 196(1)(b) gives the Board power to specify minimum eligibility requirements for registration, and section 196(1)(d) to specify by regulations standards for functioning. The agency's bye-laws follow the Board's model bye-laws under section 196(2), so the agency cannot act without the Board.

Did you get it right without looking?

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

Practise Cross Border InsolvencyFree diagnostic mock

More Cross Border Insolvency questions