In force2020 Revised Edition

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Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 7 · Judicial Management

111. End of judicial management

(1)

A judicial manager appointed by a judicial management order under section 91 is, unless the order specifies otherwise, appointed for a period that expires 180 days after the date of the making of the order, and upon the expiry of that period, the company is discharged from judicial management.

(2)

A judicial manager appointed by a meeting of creditors under section 94(11)(e) is appointed for a period that expires 180 days after the date of the approval of the judicial manager’s appointment at the meeting of creditors, and upon the expiry of that period, the company is discharged from judicial management.

(3)

Subject to subsections (4) and (5), a judicial manager may obtain an extension of the judicial manager’s term of office —

(a)

by making an application to the Court; or

(b)

by obtaining the approval of a majority in number and value of the creditors of the company (voting either in person or by proxy) —

(i)

in writing; or

(ii)

at a creditors’ meeting.

(4)

On an application under subsection (3)(a), the Court —

(a)

may extend the term of office of the judicial manager for a specified period;

(b)

may extend the term of office of a judicial manager even though that term of office has previously been extended by the Court or by approval of the company’s creditors under subsection (3)(b); and

(c)

may only extend the judicial manager’s term of office before the expiry of that term of office.

(5)

An extension of the judicial manager’s term of office may be obtained under subsection (3)(b) —

(a)

only for a period not exceeding 6 months;

(b)

only once;

(c)

only if the Court has not previously granted or dismissed an application under subsection (3)(a); and

(d)

only before the expiry of that term of office.

(6)

Any creditor who is dissatisfied with an extension of the judicial manager’s term of office under subsection (3)(b) may apply to the Court for an order terminating, or reducing the period of extension of, the appointment of the judicial manager, and the Court on hearing such an application may make such order as the Court thinks fit.

(7)

Where a judicial manager’s term of office has expired or has been extended by the Court or under subsection (3)(b), the judicial manager must file notice of the expiry or extension of the term with —

(a)

the Court (unless the extension was by the Court);

(b)

the Registrar of Companies; and

(c)

the Official Receiver.

(8)

Any judicial manager who, without reasonable excuse, fails to comply with subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and also to a default penalty.