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CS Professional · Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

While considering an application from Bharat Insolvency Institute for registration as an insolvency professional agency, the Board wants to test it against the statutory principles. Which consideration is expressly one of the principles the Board must have regard to under the Code?

The Board must have regard to promoting good professional and ethical conduct amongst insolvency professionals. Section 200 lists this alongside professional development, competent services, protecting debtors' and creditors' interests and growth of agencies; fee income, profession-based restriction or State-wise caps are not among the principles.

  1. AMaximising the fee income the agency will pay to the Board
  2. BPromoting good professional and ethical conduct amongst insolvency professionalsCorrect
  3. CEnsuring that the agency enrols only chartered accountants
  4. DLimiting the number of agencies to one per State

Explanation

Section 200 lists principles including promoting professional development and regulation, competent services, good professional and ethical conduct, protecting interests of debtors and creditors, and promoting growth of agencies. Fee maximisation, profession-based restriction and State-wise limits do not appear.

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