MCQs On IBBI Rules and Regulation Part-3

Q.1:- Any person who wish to submit information or to access the information stored with any of the information utilities, what procedure is to be followed:

• For submitting or accessing the information, the person is required to get itself registered with any Information Utility.
• For submitting or accessing the information, the person is required to request to the Information Utility.
• For submitting or accessing the information, the person is required to apply to Information Utility.
• Only for accessing the information, the person is required to get itself registered with any Information Utility.

Q.2:- To whom an information utility shall provide information free of charge:

• The Board
• The Resolution Professional
• The Adjudicating Authority
• Only A and C are correct

Q.3:- Who is the appellate authority, where an Information Utility can file appeal against the order of the Board:

• The National company Law Appellate Tribunal
• The Debt Recovery Appellate Tribunal
• The National Company Law Tribunal
• The Debt Recovery Tribunal

Q.4:- How the Governing Board may amend the bye­ laws of the Information Utility:

• It shall be amended by a resolution passed by votes in favour being not less than two times the number of the votes, if any, cast against the resolution, by the directors.
• It shall be amended by a resolution passed by votes in favour being not less than three times the number of the votes, if any, cast against the resolution, by the directors.
• It shall be amended by a resolution passed by votes in favour being not less than four times the number of the votes, if any, cast against the resolution, by the directors.
• It shall be amended by a resolution passed by simple majority of votes, by the directors.

Q.5:- For eligibility of being a registered as an information utility the net worth requirement shall be:

• a minimum net worth of fifty crore rupees
• a minimum net worth of ten crore rupees
• a minimum net worth of twenty five crore rupees
• a minimum net worth of forty crore rupees

Q.6:- How the appointment of a compliance officer is made by the IU:

• The shareholders of the IU shall appoint the Compliance Officer.
• The Governing Board shall appoint or remove a compliance officer only by means of a resolution passed at its meeting.
• The Governing Board shall appoint or remove a compliance officer only by means of a resolution passed at its meeting.
• None of the above

Q.7:- When does the amended bye-laws shall come into force:

• The amendments to the bye- laws shall come into effect on the seventh day of the receipt of the approval under Regulation 16 (2), unless otherwise directed by the Board.
• The amendments to the bye- laws shall come into effect on the Fifth day of the receipt of the approval under Regulation 16 (2), unless otherwise directed by the Board.
• The amendments to the bye-laws shall come in to effect immediately of the receipt of the approval under Regulation 16 (2), unless otherwise directed by the Board.
• The amendments to the bye-laws shall come into effect on the third day of the receipt of the approval under Regulation 16 (2), unless otherwise directed by the Board.

Q.8:- In which the Form an Information Utility shall accept information submitted by a user:

• Form C
• Form D
• Form A
• Form B

Q.9:- An information utility may submit an application for surrender of its certificate of registration to the IBBI and the IBBI shall_________ of receipt of the application, publish a notice of receipt of such application on its website and invite objections to the surrender of registration to be submitted ____________of the publication of the notice.

• within fourteen days/within fourteen days
• within fourteen days/within seven days
• within seven days/ within seven days
• within seven days/within fourteen days

Q.10:- Who may be the “Investigating Authority”:

• An officer or a team of officers of the NCLT which has been directed by the NCLT, to conduct the investigation of a service provider.
• An officer of the Central Government not below the rank of Grade A.
• An officer or a team of officers of the Board, which has been directed by the Board, to conduct the investigation of a service provider.
• An officer or a team of officers of the NCLAT, which has been directed by the NCLAT, to conduct the investigation of a service provide.

Q.11:- While carrying out the search and seizure which provisions of the law shall be followed:

• The Indian Penal Code, 1860
• Code of Civil Procedure Code, 1908
• The Indian Evidence Act, 1872
• Code of Criminal Procedure, 1973

Q.12:- The Inspecting Authority shall serve a notice of inspection to the service provider________ before the commencement of inspection:

• At least 10 days
• At least 20 days
• At least 5 days
• At least 15 days

Q.13:- The Governing Board shall NOT transact the following business:

• Operations Manuals for various activities
• Expenditures less than Rs.5 crore
• Location of Office Premises
• Regulations to be made under section 24

Q.14:- What shall be the quorum of the meetings of the committee:

• Sixty percent of Members of the existing strength of the Committee shall constitute quorum for meetings of the Committee.
• Seventy percent of Members of the existing strength of the Committee shall constitute quorum for meetings of the Committee.
• Fifty percent of Members of the existing strength of the Committee shall constitute quorum for meetings of the Committee.
• Forty percent of Members of the existing strength of the Committee shall constitute quorum for meetings of the Committee.

Q.15:- How many days before the notice for each meeting of the Governing Board shall be given:

• Not less than six days’ notice shall ordinarily be given of each meeting
• Not less than seven days’ notice shall ordinarily be given of each meeting.
• Not less than five days’ notice shall ordinarily be given of each meeting.
• Not less than four days’ notice shall ordinarily be given of each meeting.

Q.16:- Any___________ members may require the Chairperson to convene a meeting of the Governing Board at any time and the Chairperson shall convene the meeting of the Governing Board accordingly:

• Three
• Five
• Two
• Four

Q.17:- What shall be quorum where the Governing Board has less than eight Members:

• Five members
• Six members
• Three members
• Four members

Q.18:- In which Form a person claiming to be a workman or an employee of the corporate person shall submit proof of claim to the liquid at or in person:

• Form B
• Form D
• Form A
• Form C

Q.19:- Who shall bear the cost of proof:

• Creditor
• Committee of Creditors
• Claimant
• Corporate Debtor

Q.20:- What recourse is available with the liquidator where he is of the opinion that the liquidation is being done to defraud a person:

• He shall make inform the facts to the Adjudicatory Authority.
• He shall make an application to the Adjudicatory Authority to suspend the process of liquidation and pass any such orders as it deems fit.
• He shall suspend the process of liquidation.
• The liquidation process shall be null and void.

Q.21:- Who is called as ‘contributory’:

• Any other person liable to contribute towards the assets of the corporate person in the event of its liquidation
• A member of a company
• Partner of a limited liability partnership
• All the options are correct

Q.22:- In how much time the liquidator shall submit a Preliminary Report to the corporate person from the liquidation commencement date:

• within sixty days
• within seventy five days
• within forty five days
• within thirty days

Q.23:- Proof of claim of operational creditors except workmen and employees shall be submitted in which Form:

• Form B
• Form D
• Form A
• Form C

Q.24:- The liquidator shall endeavour to complete the liquidation process of the corporate person__________ from the liquidation commencement date:

• within six months
• within twelve months
• within nine months
• within three months

Q.25:- “service provider” means:

• An insolvency professional entity
• An information utility
• An insolvency professional agency of an insolvency professional
• Any of the options of A, B and C.

Q.26:- The Board shall close the grievance ____________of its receipt if it does not require any redress.

• within forty-five days
• within sixty days
• within fifteen days
• within thirty days

Q.27:- Form making a complaint with the Board how much fee is required:

• Rs. 1500/-
• Rs.2500/-
• Rs.1000/-
• Rs. 2000/-

Q.28:- “Aggrieved” means:

• A stakeholder who has filed a grievance with the NCLT on failing to get his grievance redressed from the concerned service provider.
• A stake holder who has filed a grievance with the DRT on failing to get his grievance redressed from the concerned service provider.
• A stakeholder who has filed a grievance with the Board on failing to get his grievance redressed from the concerned service provider.
• None of the above.

Q.29:- A stakeholder filing a grievance, or a complaint:

• Shall disclose the identity of the authorized representative, who is authorized to file it.
• May request the Board to keep its identity confidential
• Shall disclose its identity.
• All are correct.

Q.30:- What is time limit for filing a grievance or a complaint with the Board:

• It shall be filed within 30 days of the occurrence of the cause of action for the grievance or the complaint.
• It shall be filed within 60 days of the occurrence of the cause of action for the grievance or the complaint.
• It shall be filed within 15 days of the occurrence of the cause of action for the grievance or the complaint.
• It shall be filed within 45 days of the occurrence of the cause of action for the grievance or the complaint.

Q.31:- To whom the copy of the annual report to prepared by the IBBI shall be submitted:

• The Supreme Court of India
• No need to submit anywhere.
• The Central Government
• The NCLAT

Q.32:- A copy of the Annual Report shall be submitted to the Central Government:

• Within one hundred twenty days of the end of the financial year
• Within ninety days of the end of the financial year
• Within thirty days of the end of the financial year
• Within sixty days of the end of the financial year

Q.33:- The Board shall review each regulation _____________ unless a review is warranted earlier and amend or repeal any regulation, keeping in view:

• every three years
• Not required to be reviewed
• every year
• every two years

Q.34:- Who may constitute an ‘Advisory Committee’:

• The Committee of Creditors
• The IBBI
• The Central Government
• The Financial Creditor

Q.35:- Who shall prepare the annual report, relating to the IBBI’s activities, policies and programmes, during the previous financial year:

• The IBBI itself
• The Ministry of Finance
• The Central Government
• The Supreme Court of India

Q.36:- An amendment to any regulations shall be made in compliance with:

• The provisions of regulation which deals with Economic Analysis
• The provisions of regulation which deals with Economic Analysis
• Both A and B above
• None of the above

Q.37:- The annual statement of accounts of the Board, duly authenticated and approved shall be forwarded to:

• The President of India
• Parliamentary Committee of Financial Sector
• The Comptroller and Auditor General of India
• The Central Government

Q.38:- Who is empowered to make rules relating to the Insolvency and Bankruptcy Code, 2016:

• The Supreme Court
• A. The Insolvency and Bankruptcy Board of India
• The National Company Law Appellate Tribunal
• The Central Government

Q.39:- Who shall authenticate the annual statement of accounts and balance sheet of the Board:

• Chairperson of the Audit Committee of the Board and
• Chairperson and by the Board
• Whole-time members in-charge of Finance Accounts Department of the Board,
• All the above options taken together

Q.40:- How a grievance or a complaint shall be filed with the Board:

• It shall be filed by post or hand delivery at the Office of the Board, until the Board provides a facility for online filing of grievances and complaints.
• It shall be filed by mail at complaintsandgrievances@ibbi.gov.in
• Both the options are correct.
• It should be filed by post only.

Q.41:- In which form a complaint shall be filed with the Board:

• Form B.
• Form D.
• Form A.
• Form C.

Q.42:- “associated person” means:

• a professional or a valuer engaged by a service provider
• or any other person acting for or on behalf of a service provider
• a proprietor, partner, director, officer, or an employee of a service provider,
• Any of the options A, B or C are correct.

Q.43:- Where the amount claimed by a claimant is not precise due to any contingency or any other reason, how the liquidator shall make the best estimate of the amount of the claim:

• Consultation the corporate person
• Information available with him.
• Consultation with the claimant
• All the options are correct

Q.44:- In which Form, a person claiming to be a financial creditor of the corporate person shall submit proof of claim to the liquidator:

• Form C
• Form A
• Form D
• Form B

Q.45:- What reports the liquidator shall prepare:

• Final Report
• Preliminary Report
• Annual Status Report
• All of the above

Q.46:- The Common Seal of the Board shall not be affixed to any instrument except in pursuance of a resolution of the Governing Board and in the presence of_______ who shall sign on such instrument in token of his presence and such signing shall be independent of the signing of any person who may sign the instrument as the executor:

• atleast four Member
• atleast three Member
• atleast one Member
• atleast two Member

Q.47:- What shall be quorum where the Governing Board has eight or more Members:

• Four members
• Five members
• Six members
• Three members

Q.48:- How many minimum number of meetings of the Governing Board in a year/ in each quarter should be held:

• There shall be at least four meetings of the Governing Board in a year and at least one meeting in each quarter.
• There shall be at least three meetings of the Governing Board in a year and two meetings in a period of three quarters.
• There shall be at least one meeting of the Governing Board in a year and no requirement of minimum number of meeting in a quarter.
• There shall be at least two meetings of the Governing Board in a year and one meeting in a period of two quarters.

Q.49:- Who shall be the Secretary to the Governing Board:

• Personal Secretary to the Chairpersons of the Board shall also be the Secretary to the Governing Board
• The Chairperson shall nominate a senior officer of the Board as Secretary to the Governing Board.
• Company Secretary appointed by the Board
• Any officer appointed by the Board

Q.50:- The Board shall examine the draft inspection submitted by the Inspecting Authority, as to whether inspection is complete and satisfactory or requires further inspection and advise the Inspecting Authority accordingly___________ of receipt of draft inspection report.

• within 20 days
• within 25 days
• within 15 days
• within 10 days