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CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Insolvency

The Board suspects that an insolvency professional, who is managing a debtor with overseas subsidiaries, has not maintained proper records. Which power does the Code give the Board to examine this directly?

The Board can inspect and investigate the insolvency professional and call for information and records. Sections 196(1)(f) and (h) give these functions, and section 196(3) adds civil court powers like summoning persons and requiring production of books of account.

  1. AOnly to request the professional's insolvency professional agency to write a report
  2. BTo carry out inspections and investigations of insolvency professionals and call for information and records from themCorrect
  3. COnly to publish the professional's name in a newsletter
  4. DTo appoint a foreign liquidator to take over the records

Explanation

Section 196(1)(f) empowers the Board to carry out inspections and investigations on insolvency professionals, and section 196(1)(h) lets it call for information and records. Section 196(3) also gives it civil court powers such as summoning persons and discovery of books. Option A is too narrow.

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