AG, an insolvency professional is appointed as the Resolution Professional for the insolvency resolution process of XYZ Limited. BG, a partner of AG is a director in XYZ Limited. Discuss whether AG can continue as the Re

AG cannot continue as a resolution professional if the insolvency professional entity of which he is a director or a partner, or any other partner or director of such insolvency professional entity represents any other stakeholders in the same corporate insolvency resolution process. As per Regulation 3 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016-An insolvency professional shall be eligible to be appointed as a resolution professional for the insolvency resolution if he, and all partners and directors of the insolvency professional entity of which he is a partner or director, are independent of the corporate debtor. Explanation - A person shall be considered independent of the corporate debtor, if he- is eligible to be appointed as an independent director on the board of the corporate debtor under section 149 of the Companies Act, 2013, where the corporate debtor is a company; is not a related party of the corporate debtor; or has not been an employee or proprietor or a partner:- of a firm of auditors or secretarial auditors in practice or cost auditors of the corporate debtor; or of a legal or a consulting firm, that has or had any transaction with the corporate debtor amounting to five per cent or more of the gross turnover of such firm, in the last three financial years. (2) An insolvency professional shall not be eligible to be appointed as a resolution professional if he, or the insolvency professional entity of which he is a partner or director, is under a restraint order of the Board. (3) An insolvency professional shall not continue as a resolution professional if the insolvency professional entity of which he is a director or a partner, or any other partner or director of such insolvency professional entity represents any other stakeholders in the same corporate insolvency resolution process.