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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

The Board is framing regulations on the governance of insolvency professional agencies so that they pursue the Code's objectives. Which of the following can the Board specify in such regulations under the Code?

The Board can specify, by regulations, that an agency must have a governing board, the minimum number of independent members on it, and how many insolvency professional members sit on it. Fees, tribunal tenure and voting thresholds are not part of this provision.

  1. AThe fee payable by debtors to each member of the agency
  2. BThe minimum number of independent members on the agency's governing board and the number of insolvency professional members on itCorrect
  3. CThe tenure of the Adjudicating Authority's members
  4. DThe resolution plan approval threshold for creditors' committees

Explanation

Section 203 empowers the Board to make regulations specifying the setting up of a governing board, the minimum number of independent members on it, and the number of insolvency professional members on it. The other options relate to matters not covered by that section.

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