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

The Board is framing model bye-laws for insolvency professional agencies. Which of the following is a matter on which the Code expressly allows those model bye-laws to provide?

The standards for professional and ethical conduct of members of insolvency professional agencies. Section 196(2)(b) expressly lists this as a matter model bye-laws may cover. Resolution plan terms, asset valuation and fees paid to resolution applicants are not among the listed matters.

  1. AThe standards for professional and ethical conduct of the members of the agenciesCorrect
  2. BThe commercial terms of each resolution plan approved by creditors
  3. CThe valuation of assets of every corporate debtor
  4. DThe fixing of fees payable by debtors to resolution applicants

Explanation

Section 196(2)(b) lets model bye-laws provide for standards for professional and ethical conduct of members. The other options (resolution plan terms, asset valuation, applicant fees) are not listed among the matters for model bye-laws.

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