Insolvency Act · s 38

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38.
Powers and duties of judicial manager
(1) On the making of a judicial management order, the judicial manager shall take into his custody or under his control all the property to which the company is or appears to be entitled.
(2) During the period for which a judicial management order is in force, all powers conferred and duties imposed on the directors by this Act or the Companies Act (Chapter 39) or by the memorandum or articles of the company shall be exercised and performed by the judicial manager and not by the directors; but nothing in this subsection shall require the judicial manager to call any meeting of the company.
(3) The judicial manager of a company shall have powers to —
(a) do all such things as may be necessary for the management of the affairs, business and property of the company;
(b) do all such other things as the Court may by order sanction.
(4) Without prejudice to the generality of subsection (3)(a), the powers conferred by that subsection shall include the powers specified in
Schedule 2.
(5) The judicial manager may apply to the Court for directions in relation to any particular matter arising in connection with the carrying out of his functions.
(6) Nothing in this section shall be taken as authorising the judicial manager of a company to make any payment towards discharging any debt to which the company was subject on the making of the judicial management order unless —
(a) the making of the payment is sanctioned by the Court or the payment is made in pursuance of a compromise or arrangement so sanctioned; or
(b) the payment is made towards discharging sums secured by a security or payable under a hire-purchase agreement, chattels leasing agreement or retention of title agreement to which section 39(2), (5)
and (6) applies.

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(7) The judicial manager of a company —
(a) may, if he thinks fit, at any time summon a meeting of the company’s creditors; and
(b) shall summon such a meeting if he is directed to do so by the
Court.
(8) Any alteration in the memorandum or articles of the company made by virtue of an order under subsection (3)(b) is of the same effect as if duly made by resolution of the company, and the provisions of the
Companies Act (Chapter 39) apply to the memorandum or articles as so altered accordingly.
(9) An office copy of an order under subsection (3)(b) sanctioning the alteration of the memorandum or articles of the company shall, within 14 days from the making of the order, be sent by the judicial manager to the Registrar.
(10) A person dealing with the judicial manager of a company in good faith and for value shall not be concerned to inquire whether the judicial manager is acting within his powers.

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s 38Powers and duties of judicial manager

(1)

On the making of a judicial management order, the judicial manager shall take into his custody or under his control all the property to which the company is or appears to be entitled.

(2)

During the period for which a judicial management order is in force, all powers conferred and duties imposed on the directors by this Act or the Companies Act (Chapter 39) or by the memorandum or articles of the company shall be exercised and performed by the judicial manager and not by the directors; but nothing in this subsection shall require the judicial manager to call any meeting of the company.

(3)

The judicial manager of a company shall have powers to —

(a)

do all such things as may be necessary for the management of the affairs, business and property of the company;

(b)

do all such other things as the Court may by order sanction.

(4)

Without prejudice to the generality of subsection (3)(a), the powers conferred by that subsection shall include the powers specified in

Schedule 2.

(5)

The judicial manager may apply to the Court for directions in relation to any particular matter arising in connection with the carrying out of his functions.

(6)

Nothing in this section shall be taken as authorising the judicial manager of a company to make any payment towards discharging any debt to which the company was subject on the making of the judicial management order unless —

(a)

the making of the payment is sanctioned by the Court or the payment is made in pursuance of a compromise or arrangement so sanctioned; or

(b)

the payment is made towards discharging sums secured by a security or payable under a hire-purchase agreement, chattels leasing agreement or retention of title agreement to which section 39(2), (5)

and (6) applies.

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(7)

The judicial manager of a company —

(a)

may, if he thinks fit, at any time summon a meeting of the company’s creditors; and

(b)

shall summon such a meeting if he is directed to do so by the

Court.

(8)

Any alteration in the memorandum or articles of the company made by virtue of an order under subsection (3)(b) is of the same effect as if duly made by resolution of the company, and the provisions of the

Companies Act (Chapter 39) apply to the memorandum or articles as so altered accordingly.

(9)

An office copy of an order under subsection (3)(b) sanctioning the alteration of the memorandum or articles of the company shall, within 14 days from the making of the order, be sent by the judicial manager to the Registrar.

(10)

A person dealing with the judicial manager of a company in good faith and for value shall not be concerned to inquire whether the judicial manager is acting within his powers.