32. Application to Court for company to be placed under judicial management and for appointment of judicial manager

the company is or will be unable to pay its debts; and

there is a reasonable probability of rehabilitating the company or of preserving all or part of its business as a going concern or that otherwise the interests of creditors would be better served than by resorting to a winding up, an application may be made to the Court for an order that the company be placed under the judicial management of a judicial manager.

it is satisfied that the company is or will be unable to pay its debts; and

it considers that the making of the order would be likely to achieve one or more of the following purposes —

the survival of the company, or the whole or part of its undertaking as a going concern;

the approval under section 13 of a voluntary arrangement between the company and any such creditors or members as are mentioned in that section or the Brunei Darussalam Central Bank;

a more advantageous realisation of the company’s assets would be effected than on a winding up.

In an application for a judicial management order under subsection (1), the applicant shall nominate a person who is a public accountant, who is not the auditor of the company, to act as a judicial manager.

The Court may reject the nomination of the applicant and appoint another person in his stead.

Where a nomination is made by the company, a majority in number and value of the creditors (including contingent or prospective creditors) may be heard in opposition to the nomination and the Court may, if satisfied as to the value of the creditors’ claims and as to the grounds of opposition, invite the creditors to nominate a person in his stead and, if it sees fit, adopt their nomination.

Nothing in this subsection shall prevent the Minister from himself nominating a person to act as a judicial manager if he considers that the public interest so requires and in such a case the

Notwithstanding paragraph (a), where a person is appointed by the Court or nominated by the Minister to act as a judicial manager that person need not be a public accountant.

shall be published in the Gazette and in a Malay and English local daily newspaper, and a copy thereof sent to the Registrar; and

shall be given —

to the company, in a case where a creditor is the applicant; and

to any person who has appointed or is or may be entitled to appoint a receiver and manager of the whole

a receiver and manager referred to in subsection (5) has been or will be appointed; or

the making of the order is opposed by a person who has appointed or is entitled to appoint such a receiver and manager.

dismiss the application or adjourn the hearing conditionally;

unconditionally or make an interim order or any other order that it thinks fit.

after the company has gone into liquidation;

where the company is a bank licensed under the

where the company is an insurance company registered under the Insurance Order, 2006 (S 48/2006) or a takaful company registered under the Takaful Order, 2008 (S 100/2008).

making a judicial management order and appointing a judicial manager if it considers the public interest so requires; or

appointing, after the making of an application for a judicial management order and on the application of the person applying for the judicial management order, an interim judicial manager, pending the making of a judicial management order, and such interim judicial manager may, if the Court sees fit, be the person nominated in the application for a judicial management order. The interim judicial manager so appointed may exercise such functions, powers and duties as the Court may specify in the order.