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CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency

The Board's investigating authority submits a report on an insolvency professional under section 218(6). Which statement about the disciplinary committee that considers it is correct under section 220?

The disciplinary committee consists of whole-time members of the Board only. If, on examining the investigating authority's report, it is satisfied that sufficient cause exists, it may impose a penalty or suspend or cancel the registration of the professional.

  1. AIt may include any Board member, including part-time members
  2. BIt may only impose a penalty and cannot suspend registration
  3. CIt consists of whole-time members of the Board only, and may impose penalty or suspend or cancel registration if sufficient cause existsCorrect
  4. DIt consists of members of the insolvency professional agencies

Explanation

Section 220(1) proviso limits the committee to whole-time members of the Board. Under 220(2), on sufficient cause it may impose penalty or suspend or cancel registration. Hence the other options misstate composition or powers.

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