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TMI BlogCODE OF CONDUCT FOR INSOLVENCY PROFESSIONALSX X X X Extracts X X X X X X X X Extracts X X X X ..... pointed as an interim resolution professional, resolution professional, liquidator, or bankruptcy trustee should not 14 [ itself ] acquire, directly or indirectly, any of the assets of the debtor, nor knowingly permit any relative to do so. Independence and impartiality. 5. An insolvency professional must maintain complete independence in 12 [ its ] professional relationships and should conduct the insolvency resolution, liquidation or bankruptcy process, as the case may be, independent of external influences. 6. In cases where the insolvency professional is dealing with assets of a debtor during liquidation or bankruptcy process, he must ensure that he or his relatives do not knowingly acquire any such assets, whether directly or indirectly unless it is shown that there was no impairment of objectivity, independence or impartiality in the liquidation or bankruptcy process and the approval of the Board has been obtained in the matter. 7. An insolvency professional shall not take up an assignment under the Code if he, any of his relatives, any of the partners or directors of the insolvency professional entity of which he is a partner or director, or the insolvenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 [ itself ] , the corporate debtor, the financial creditor, the interim finance provider, if any, and the prospective resolution applicant, to the insolvency professional agency of which he is a member, within the time specified as under: Relationship of the other professional with Disclosure to be made within three days of (1) (2) Insolvency professional the appointment of the other professional. Corporate debtor the appointment of the other professional. Financial creditors constitution of committee of creditors. Interim finance providers the agreement with the interim finance provider or three days of the appointment of the other professional, whichever is later. Prospective resolution applicants the supply of information memorandum to the prospective resolution applicant or three days of the appointment of the other professional, whichever is later. If relationship with any of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n insolvency professional must maintain and upgrade his professional knowledge and skills to render competent professional service. Representation of correct facts and correcting misapprehensions. 11. An insolvency professional must inform such persons under the Code as may be required, of a misapprehension or wrongful consideration of a fact of which he becomes aware, as soon as may be practicable. 12. An insolvency professional must not conceal any material information or knowingly make a misleading statement to the Board, the Adjudicating Authority or any stakeholder, as applicable. Timeliness. 13. An insolvency professional must adhere to the time limits prescribed in the Code and the rules, regulations and guidelines thereunder for insolvency resolution, liquidation or bankruptcy process, as the case may be, and must carefully plan 12 [ its ] actions, and promptly communicate with all stakeholders involved for the timely discharge of 12 [ its ] duties. 14. An insolvency professional must not act with mala fide or be negligent while performing 12 [ its ] functions and duties under the Code. Information management. 15. An insolvency profess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en assignments as resolution professional in corporate insolvency resolution process, of which not more than three shall have admitted claims exceeding one thousand crore rupees each. ] 15 [ 22A. An insolvency professional may resign from the assignment, subject to the recommendation of the committee of creditors in a corporate insolvency resolution process, consultation committee in liquidation process, the debtor or the creditor in the insolvency resolution process of personal guarantor to the corporate debtor, as the case may be, and the approval of the Adjudicating Authority. Explanation .- The insolvency professional shall continue to discharge his duties, functions and responsibilities till the approval of resignation by the Adjudicating Authority. ] 5 [ 23. An insolvency professional must not engage in any employment when he holds a valid authorisation for assignment or when he is undertaking an assignment. 23A. Where an insolvency professional has conducted a corporate insolvency resolution process, he and his relatives shall not accept any employment, other than an employment secured through open competitive recruitment, with, or render professional serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bills or invoices in 12 [ its ] name towards 12 [ its ] fees, and such fees shall be paid to 13 [ it ] through banking channel. 25C. An insolvency professional shall ensure that the insolvency professional entity or the professional engaged by 13 [ it ] raises bills or invoices in their own name towards their fees, and such fees shall be paid to them through banking channel. ] 26. An insolvency professional shall not accept any fees or charges other than those which are disclosed to and approved by the persons fixing 12 [ its ] remuneration. 11 [ 26A. An insolvency professional shall not accept /share any fees or charges from any professional and/or support service provider who are appointed under the processes. ] 27. An insolvency professional shall disclose all costs towards the insolvency resolution process costs, liquidation costs, or costs of the bankruptcy process, as applicable, to all relevant stakeholders, and must endeavour to ensure that such costs are not unreasonable. 10 [ 27A. An insolvency professional shall, while undertaking assignment or conducting processes, exercise reasonable care and diligence and take all necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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