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

Southern Insolvency Forum Pvt Ltd begins enrolling insolvency professionals as its members and offering services as an insolvency professional agency, but it has not obtained any certificate of registration from the Board. Which statement is correct?

Such an entity may carry on business as an insolvency professional agency and enrol insolvency professionals only under a certificate of registration issued by the Board. Without that certificate, its enrolment activity is not permitted, whatever its bye-laws or the professional background of its members.

  1. AIt may operate if it has a bye-law framework approved by its own members
  2. BIt may operate for a period until the Board inspects it
  3. CIt may carry on this business only under and in accordance with a certificate of registration issued by the BoardCorrect
  4. DIt may operate if it enrols only chartered accountants

Explanation

Section 199 provides that, save as otherwise provided in the Code, no person shall carry on business as an insolvency professional agency and enrol insolvency professionals as members except under a certificate of registration issued by the Board. Internal bye-laws or limiting membership to one profession does not substitute for registration.

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