CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency
Vikram Nair, an insolvency professional, is accused of three lapses: (i) failing to take reasonable care and diligence in a process, (ii) breaching a term in his agency's bye-laws, and (iii) refusing to let the agency inspect his records. A complaint by an aggrieved creditor is received by the agency. Which statement is correct under the IBC text?
All three lapses breach the code of conduct in Section 208(2): reasonable care and diligence, compliance with agency bye-laws, and allowing record inspection. Under Section 204, the agency can redress grievances against its members and suspend or cancel membership on grounds set out in its bye-laws.
- AOnly lapse (i) is a code of conduct breach; the others are agency matters
- BNone is a code of conduct breach since the code applies only to the Board
- COnly lapse (iii) is covered by the code of conduct
- DAll three are breaches of the code of conduct in Section 208(2), and the agency may redress grievances against its members and suspend or cancel membership on grounds in its bye-lawsCorrect
Explanation
Section 208(2)(a), (b) and (c) cover reasonable care and diligence, compliance with agency bye-laws, and allowing inspection of records. Section 204 empowers the agency to redress grievances against its members and to suspend or cancel membership on bye-law grounds. Treating any lapse as outside the code is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Insolvency shows your real accuracy, how long you take and where you lose marks.
More Insolvency questions
- Insolvency Professional Agency 'Vidhi IPA' wants to know who decides the minimum number of independent members that must sit on its governin…
- Rohit, an insolvency professional, is a member of an insolvency professional agency. During a corporate insolvency resolution process he ref…
- Rohit, an insolvency professional, is a member of an insolvency professional agency. After a CIRP matter, he refuses to let the agency exami…
- Mr. Arvind Rao, a registered insolvency professional, is appointed as resolution professional in a corporate insolvency resolution process f…
- An insolvency professional agency is found to have contravened the Code, but neither the loss caused nor any unlawful gain can be quantified…
- Meera, an insolvency professional, completes proceedings before the Adjudicating Authority in a corporate matter. To whom must she submit a …