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CS Professional · Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

Rohit Malhotra has cleared the insolvency professional examination and wants to act as an insolvency professional. Under the Code, what must he do in relation to an insolvency professional agency and the Board?

An insolvency professional must first obtain membership of an insolvency professional agency and then register with the Board, within the time, manner and fee specified by regulations. Agency membership comes first and Board registration follows; registration is not optional.

  1. ARegister with the Board first, and only then seek membership of an insolvency professional agency
  2. BObtain membership of an insolvency professional agency and then register himself with the BoardCorrect
  3. CObtain membership of an insolvency professional agency only, as Board registration is optional
  4. DRegister with the Board only, since agency membership is needed only for corporate professionals

Explanation

Section 207(1) requires every insolvency professional to obtain membership of an insolvency professional agency and, after that, register with the Board within the specified time, manner and fee. The sequence is agency membership first, Board registration second. The option reversing the order is therefore wrong.

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