CS Professional · Corporate Restructuring, Valuation and Insolvency · Insolvency
While deciding whether to register a new agency, the Board notes that the applicant's plan focuses only on maximising membership revenue and says nothing about members' conduct or protecting debtors and creditors. Which approach best reflects the principles the Board must have regard to under the Code?
The Board must weigh all the registration principles: professional development and regulation, competent services, good ethical conduct, protection of debtors and creditors, and agency growth. Growth is only one principle, so a plan ignoring conduct and stakeholder protection is deficient.
- ARegister it, since growth of agencies is the only stated principle
- BRefuse it solely because it is a private company
- CHave regard to promoting professional development, competent services, ethical conduct, protection of debtors' and creditors' interests and agency growth, and so find the plan deficientCorrect
- DRegister it and leave ethics to the Adjudicating Authority
Explanation
Section 200 lists five principles: professional development and regulation of professionals, services of competent professionals, good professional and ethical conduct, protection of debtors, creditors and others, and growth of agencies for effective resolution. Growth is only one of them, so a plan ignoring conduct and protection is deficient.
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