Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Corporate Insolvency Resolution Process

Under section 54E, the Adjudicating Authority admits a pre-packaged insolvency application for Tara Foods Ltd. The insolvency professional named in the application has a disciplinary proceeding pending against him. Which statement is correct?

Where a disciplinary proceeding is pending against the named professional, the Adjudicating Authority appoints the resolution professional on the Board's recommendation. That resolution professional then makes the public announcement immediately after appointment, and the moratorium is still declared on the commencement date with the admission order.

  1. AThe named professional must still be appointed, because the application names him
  2. BThe professional is appointed on the recommendation of the Board, and the public announcement is made by that resolution professional immediately after appointmentCorrect
  3. CNo resolution professional is appointed and the moratorium is not declared until the proceeding ends
  4. DThe corporate debtor's directors appoint another professional, who then makes the public announcement

Explanation

Section 54E(1)(b)(ii) provides that where a disciplinary proceeding is pending against the professional named, the resolution professional is appointed based on the Board's recommendation. Section 54E(1)(c) makes the resolution professional cause the public announcement immediately after appointment. The moratorium is declared on the pre-packaged insolvency commencement date along with the admission order, so it is not postponed.

Did you get it right without looking?

One question tells you little. A timed set on Corporate Insolvency Resolution Process shows your real accuracy, how long you take and where you lose marks.

Practise Corporate Insolvency Resolution ProcessFree diagnostic mock

More Corporate Insolvency Resolution Process questions