Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

Sundaram Resolution Forum Pvt Ltd starts enrolling insolvency professionals as its members and calls itself an insolvency professional agency, although the Board has issued it no certificate of registration. Which statement is correct?

Sundaram Resolution Forum cannot function as an agency. The Code bars any person from carrying on business as an insolvency professional agency and enrolling professionals unless it holds a certificate of registration issued by the Board. Qualified members or a governing board do not substitute for registration.

  1. AIt is permitted if its members are qualified professionals
  2. BIt is permitted until the Board issues a notice to it
  3. CIt is permitted if it has a governing board with independent members
  4. DIt is not permitted, as an agency must carry on business under a certificate of registration issued by the BoardCorrect

Explanation

Section 199 provides that, save as otherwise provided, no person may carry on business as an insolvency professional agency and enrol professionals except under a certificate of registration issued by the Board. Having a governing board or qualified members does not replace that certificate.

Did you get it right without looking?

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

Practise InsolvencyFree diagnostic mock

More Insolvency questions