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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

The IBBI is framing regulations for an insolvency professional agency (IPA). It requires the agency to set up a governing board with a minimum number of independent members. Which purpose does the Code give for such regulations?

Under Section 203, the Board makes regulations on the governing board of an insolvency professional agency, including independent members, so that the agency takes into account the objectives sought to be achieved under the Code. It does not relate to fund withdrawals or trustee appointments.

  1. ATo ensure the agency takes into account the objectives sought to be achieved under the CodeCorrect
  2. BTo allow the agency to withdraw money from the Insolvency and Bankruptcy Fund
  3. CTo let the agency appoint bankruptcy trustees directly
  4. DTo exempt the agency from the Board's oversight

Explanation

Section 203 empowers the Board to make regulations on the governing board, independent members and the number of insolvency professionals on it. The stated purpose is ensuring the agency takes into account the Code's objectives. The other options are not found in that section.

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