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

While considering an application from Sarathi Insolvency Forum for registration as an insolvency professional agency, the Board reasons as follows. Which consideration is NOT among the principles the Code directs the Board to have regard to?

Maximising the Board's fee income is not a registration principle. Section 200 directs the Board to consider professional development, competent services, ethical conduct, protection of debtors' and creditors' interests, and growth of agencies. Fee levying is a Board power under section 196, not a principle governing registration.

  1. AWhether registration promotes good professional and ethical conduct amongst insolvency professionals
  2. BWhether registration protects the interests of debtors, creditors and other specified persons
  3. CWhether registration promotes the growth of insolvency professional agencies for effective resolution of insolvency and bankruptcy processes
  4. DWhether registration will maximise the fee income of the Board from the agencyCorrect

Explanation

Section 200 lists the principles for registration: professional development and regulation of insolvency professionals, competent services, good professional and ethical conduct, protection of the interests of debtors and creditors, and growth of agencies. Maximising the Board's fee income is not one of them, although the Board may levy fees under section 196.

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