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CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

Under the principles the Board must have regard to while registering insolvency professional agencies, which of the following is expressly one of them?

One of the principles the Board must consider when registering insolvency professional agencies is promoting good professional and ethical conduct amongst insolvency professionals. The Code does not list guaranteed fees, one agency per State, or minimum recovery of admitted claims as registration principles.

  1. APromoting good professional and ethical conduct amongst insolvency professionalsCorrect
  2. BGuaranteeing minimum fee income to every insolvency professional
  3. CLimiting the number of agencies to one in each State
  4. DEnsuring recovery of at least half the admitted claims in every process

Explanation

Section 200 lists principles such as promoting professional development and regulation of insolvency professionals, competent services, good professional and ethical conduct, protecting interests of debtors and creditors, and promoting growth of agencies. Fee guarantees, State-wise limits and recovery targets do not appear.

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