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

The Board is drafting model bye-laws for insolvency professional agencies. Which of the following matters can the model bye-laws provide for in relation to disciplinary action against members?

Model bye-laws may provide for the grounds on which penalties may be levied, the manner of conducting disciplinary proceedings and imposing penalties, expulsion grounds, grievance redressal, and how penalty amounts are utilised. Options limiting them to one item are incomplete.

  1. AOnly the grounds for expulsion, and nothing on penalties
  2. BThe grounds on which penalties may be levied, the manner of conducting disciplinary proceedings and imposing penalties, and the manner of utilising penalty amountsCorrect
  3. COnly the manner of conducting disciplinary proceedings, with penalties fixed by the Central Government
  4. DOnly the quantum of fee for inducting members

Explanation

Section 196(2) lists grounds for penalties (h), grievance redressal (i), expulsion grounds (j), disciplinary proceedings and penalties (p), and utilisation of penalty amounts (q). The key distractors cover only part of this list, so they are wrong.

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