In force2020 Revised Edition

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

115. Protection of interests of creditors and members

(1)

At any time when a company is in judicial management or interim judicial management, a creditor or member of the company may apply to the Court for an order under this section on the ground —

(a)

that the company’s affairs, business and property are being or have been managed by the judicial manager or interim judicial manager in a manner that is or was unfairly prejudicial to the interests of —

(i)

its creditors or members generally;

(ii)

some part of its creditors or members (including at least the applicant); or

(iii)

a single creditor that represents at least one quarter in value of the claims against the company;

(b)

that any actual or proposed act or omission of the judicial manager or interim judicial manager is or would be prejudicial in the manner mentioned in paragraph (a);

(c)

in a case of interim judicial management or judicial management under section 94, that the interim judicial management or judicial management of the company should not have been commenced at all;

(d)

that one or more of the purposes of judicial management mentioned in section 89(1) have been achieved;

(e)

that none of the purposes of judicial management mentioned in section 89(1) is capable of achievement; or

(f)

that the judicial manager is not managing the company in accordance with the proposals which had been approved by a meeting of creditors summoned under section 107(1).

(2)

On an application under subsection (1), the Court may —

(a)

make such order as the Court thinks fit for giving relief in respect of the matters complained of;

(b)

adjourn the hearing conditionally or unconditionally; or

(c)

make an interim order or any other order that the Court thinks fit.

(3)

Subject to subsection (4), an order under this section may —

(a)

regulate the future management by the judicial manager or interim judicial manager of the company’s affairs, business and property;

(b)

require the judicial manager or interim judicial manager —

(i)

to refrain from doing or continuing an act complained of by the applicant; or

(ii)

to do an act that the applicant has complained the judicial manager or interim judicial manager has omitted to do;

(c)

require the summoning of a meeting of creditors or members for the purpose of considering such matters as the Court may direct; or

(d)

discharge the company from judicial management or interim judicial management, and make such consequential provision as the Court thinks fit.

(4)

An order under this section must not prejudice or prevent the implementation of any compromise or arrangement approved under section 210 of the Companies Act 1967 or section 71.

(5)

Where the company is discharged from judicial management or interim judicial management under subsection (3)(d), the judicial manager or interim judicial manager must immediately lodge with the Official Receiver and the Registrar of Companies a copy of the order effecting the discharge.

(6)

Any judicial manager or interim judicial manager who, without reasonable excuse, fails to comply with subsection (5) 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.

(7)

In this section —

“interim judicial management” means the management of a company’s affairs, business and property by an interim judicial manager;

“interim judicial manager” means any person appointed as an interim judicial manager under section 92 or 94(3).