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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Section 203 empowers the Board to make regulations on governing boards of insolvency professional agencies 'for the purposes of ensuring' a particular thing. What is that purpose?

The Board makes governing board regulations under section 203 to ensure that every insolvency professional agency takes into account the objectives sought to be achieved under the Code. It is not about maximising fees, exclusive control by professionals or government nominees.

  1. AThat every agency maximises the enrolment fees collected from its members
  2. BThat every agency takes into account the objectives sought to be achieved under the CodeCorrect
  3. CThat every agency is managed solely by insolvency professionals
  4. DThat every agency is controlled by the Central Government through nominees

Explanation

Section 203 states that the Board makes these regulations to ensure that every insolvency professional agency takes into account the objectives sought to be achieved under the Code. The section requires independent members as well, so management solely by professionals is wrong, and it gives no control to government nominees.

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