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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

Neha Bose, an insolvency professional and member of an insolvency professional agency, is handling a corporate insolvency resolution process. Which of the following conduct requirements under Section 208(2) applies to her?

Neha must allow her insolvency professional agency to inspect her records. The code of conduct also requires reasonable care and diligence, compliance with the agency's bye-laws, and submission of copies of Adjudicating Authority proceeding records to both the Board and the agency.

  1. AShe must allow her insolvency professional agency to inspect her recordsCorrect
  2. BShe must file her records only with the Adjudicating Authority and not with the Board
  3. CShe may ignore agency bye-laws where the committee of creditors agrees
  4. DShe must take care and diligence only in liquidation, not in resolution processes

Explanation

Section 208(2)(c) requires every insolvency professional to allow the agency to inspect records. Section 208(2)(d) requires a copy of records of every Adjudicating Authority proceeding to go to both the Board and the agency, so the second option is wrong. Clause (b) requires compliance with bye-laws, and clause (a) requires reasonable care and diligence in performing duties generally.

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