Section 94

the company is, or is likely to become, unable to pay its debts; and

there is a reasonable probability of achieving one or more of the purposes of judicial management mentioned in section 89(1),the company may, instead of applying to the Court for a judicial management order, obtain under subsection (11) a resolution of the company’s creditors for the company to be placed under the judicial management of a judicial manager in accordance with the requirements in this section.

to the proposed interim judicial manager; and

to any person who has appointed, or is or may be entitled to appoint, a receiver and manager of the whole (or substantially the whole) of the company’s property under the terms of any debentures of the company secured by a floating charge or by a floating charge and one or more fixed charges.

the appointment is authorised by way of a resolution of the members of the company or, where so authorised by the constitution of the company, by a resolution of its board of directors;

the notice period mentioned in subsection (2) has expired;

not more than 21 days have elapsed after the date of the notice mentioned in subsection (2);

each person to whom the notice mentioned in subsection (2) was given has consented in writing to the appointment of the interim judicial manager;

the proposed interim judicial manager has lodged, with the Official Receiver and the Registrar of Companies, a statutory declaration by the proposed interim judicial manager stating that —

the proposed interim judicial manager is not in a position of conflict of interest;

in the view of the proposed interim judicial manager, one or more purposes of judicial management mentioned in section 89(1) can be achieved; and

the proposed interim judicial manager consents to be appointed as interim judicial manager;

the company’s directors have lodged with the Registrar of Companies a statutory declaration stating that —

the company is or is likely to become unable to pay its debts;

the company will summon a meeting of the company’s creditors to be held on a date not later than 30 days after the date of lodgment of the statutory declaration mentioned in paragraph (e); and

the directors believe that one or more of the purposes of judicial management mentioned in section 89(1) is likely to be achieved;

the proposed interim judicial manager is a licensed insolvency practitioner, and is not the auditor of the company.

is an officer of the court;

has, and may exercise, all the functions and powers of a judicial manager appointed by a Court under section 91, subject to such limitations and restrictions as may be prescribed by regulations; and

must adjudicate any proofs of debt filed by creditors for purposes of voting at the meeting of creditors to be convened under subsection (7).

within 3 days after the appointment of the interim judicial manager, cause a written notice of the appointment to be lodged in the prescribed form with the Official Receiver and the Registrar of Companies; and

within 7 days after the lodgment of the notice under paragraph (a), cause a notice of the appointment to be published in the Gazette and in an English local daily newspaper.

the expiry of 30 days after the date of the appointment, or such extension of that period as the Official Receiver may allow in any particular case;

the appointment of a judicial manager, or the rejection of the resolution to place the company under judicial management at a meeting of creditors convened under subsection (7).

give to the creditors at least 14 days’ written notice of the meeting, together with —

a statement showing the names of all creditors and the amounts of their claims; and

a full statement of the company’s affairs showing in respect of the company’s assets or property the method and manner in which the valuation of the assets or property was arrived at; and

cause notice of the meeting of the creditors to be published at least 10 days before the date of the meeting in an English local daily newspaper.

the creditors may appoint one of their number, the interim judicial manager, or any director appointed under subsection (9), to be chairperson of the meeting (called in this section the chairperson);

the chairperson must determine whether the meeting is being held at a time and place convenient to the majority in value of the creditors, and the chairperson’s decision is final;

if the chairperson decides that the meeting is not being held at a time and place convenient to that majority, the meeting lapses and a further meeting must be summoned by the company as soon as is practicable;

the company is placed under the judicial management of a judicial manager if a majority in number and value of the creditors present and voting resolve to do so; and

where the meeting passes a resolution to place the company under the judicial management of a judicial manager, the meeting must approve, by a majority in number and value of the creditors of the company present and voting, the appointment of a person as judicial manager.

if an application for a judicial management order has been made under section 91(1), and that application has not been withdrawn or decided by the Court;

after the company has gone into liquidation;

if the company is a banking corporation or is a finance company licensed under the Finance Companies Act 1967;

if the company is a licensed insurer licensed under the Insurance Act 1966; or

if the company belongs to such class of companies as the Minister may by order in the Gazette prescribe.