CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency
Which of the following is a principle the Board must have regard to while registering insolvency professional agencies under the Code?
The Board must have regard to promoting the growth of insolvency professional agencies for effective resolution of insolvency and bankruptcy processes, along with other principles such as professional development, ethical conduct and protecting the interests of debtors and creditors alike.
- APromoting the growth of insolvency professional agencies for effective resolution of insolvency and bankruptcy processesCorrect
- BMaximising the contribution of insolvency professionals to the Insolvency and Bankruptcy Fund
- CGiving priority to creditors' interests over those of debtors
- DRestricting the number of agencies to ensure uniform bye-laws
Explanation
Section 200 lists the principles: promoting professional development and regulation, competent services, ethical conduct, protecting interests of debtors, creditors and others, and promoting the growth of agencies. The creditor-priority option is wrong because the Code asks the Board to protect the interests of debtors and creditors alike.
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