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CS Professional · Insolvency and Bankruptcy - Law and Practice · Resolution Strategies (Elective 7.5)

Which describes the scope of the resolution professional's role under Section 23(1) in a regular CIRP of Tapi Pharma Ltd?

Under Section 23(1), the resolution professional conducts the entire corporate insolvency resolution process and manages the corporate debtor's operations during the CIRP period, subject to section 27. The role is not split with the board or limited to the stage before the committee of creditors is formed.

  1. AHe conducts the entire CIRP and manages the corporate debtor's operations during the CIRP period, subject to section 27Correct
  2. BHe only manages operations, while the CoC conducts the process
  3. CHe conducts the CIRP but the board of directors manages operations
  4. DHe conducts the CIRP only up to constitution of the CoC

Explanation

Section 23(1) makes the RP conduct the entire CIRP and manage operations during the CIRP period, subject to section 27. Splitting these functions with the CoC or the board, or limiting them to the period before CoC constitution, is wrong.

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