CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code
Vidhya Insolvency Forum, an entity with no registration, starts enrolling insolvency professionals as members and calls itself an insolvency professional agency. Separately, the Board is considering a genuine applicant's registration. Which statement is correct under Sections 199 and 200?
Vidhya cannot enrol insolvency professionals without a certificate of registration issued by the Board. When registering agencies, the Board must have regard to principles such as promoting professional development, competent services, ethical conduct, protecting stakeholders and growth of agencies.
- AVidhya's activity is barred without a certificate of registration from the Board, and the Board must have regard to principles such as promoting professional development and ethical conduct of insolvency professionals when registering agenciesCorrect
- BVidhya may operate freely, since registration is needed only to conduct inspections
- CVidhya needs a certificate from the Adjudicating Authority, and the Board's registration principles apply only to individuals
- DVidhya may enrol members for one year before applying, and the Board's principles are limited to protecting debtors
Explanation
Section 199 bars any person from carrying on business as an insolvency professional agency and enrolling professionals except under a certificate of registration issued by the Board. Section 200 lists principles the Board considers when registering agencies, including professional development, competent services, ethical conduct, protecting debtors, creditors and others, and growth of agencies. The protection is not limited to debtors.
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