CFE – Law — Question 33

Ellis works for a business that filed for bankruptcy. The administrator presiding over the bankruptcy contacts Ellis and requests information regarding his employer's financial affairs. Assuming the administrator has all of the powers recommended in the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles), which of the following is TRUE?

Answer options

• A. The administrator has no power to obtain the information under any circumstances.
• B. The administrator may not obtain the information unless the business agrees in writing.
• C. The administrator may only seek information regarding the business that filed bankruptcy if Ellis consents to providing it.
• D. The administrator may compel Ellis to provide the information, despite Ellis's relationship to the business.

Correct answer: C

Explanation

The correct answer is C because the administrator can only seek information if the individual, in this case Ellis, consents to provide it. Options A and B incorrectly state that the administrator has no power or requires written consent from the business, which is not the case under the World Bank Principles. Option D is also incorrect because it suggests that the administrator can compel Ellis without his consent, which contradicts the principle of individual consent in this context.