Insolvency Act · 2022 Revised Edition · Part · Judicial Management
35. Effect of judicial management order
Official textFrom Attorney General's Chambers, unchanged
On the making of a judicial management order —
any receiver or receiver and manager shall vacate office;
and
any application for the winding up of the company shall be dismissed.
Where any receiver or receiver and manager has vacated office under subsection (1)(a) —
his remuneration and any expenses properly incurred by him; and
any indemnity to which he is entitled out of the assets of the company, shall be charged on and, subject to subsection (4), paid out of any property of the company which was in his custody or under his control at the time in priority to any security held by the person by or on whose behalf he was appointed.
Neither a receiver nor a receiver and manager of a company who vacates office under subsection (1)(a) shall be required on or after so vacating office to take steps to comply with any duty imposed on him by section 30.
company
“company” means a company incorporated or registered under the Companies Act;
During the period for which a judicial management order is in force —
no resolution shall be passed or order made for the winding up of the company;
no receiver and manager as described in section 32(5)(b)(ii)
of the company shall be appointed;
Insolvency 50
no steps shall be taken to enforce any charge on or security over the property of the company or to repossess any goods in the company’s possession under any hire-purchase agreement, chattels leasing agreement or retention of title agreement except —
with the consent of the judicial manager; or
with leave of the Court and subject to such conditions as the Court may impose;
no other proceedings and no execution or other legal process shall be commenced or continued and no distress may be levied against the company or its property except —
with the consent of the judicial manager; or
with leave of the Court and subject to such conditions as the Court may impose.
Terms defined in this Act
chattels leasing agreement
Defined · s 3“chattels leasing agreement” means an agreement for the bailment of goods which is capable of subsisting for more than 3 months;
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
Court
Defined · s 3“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
hire-purchase agreement
Defined · s 3“hire-purchase agreement” has the meaning assigned to it in the Hire-Purchase Order, 2006;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
property
Defined · s 3“property”, in relation to a company, includes money, goods, things in action and every description of property, whether real or personal, and whether in Brunei Darussalam or elsewhere, and also obligations and every description of interest whether present or future or vested or contingent arising out of, or incidental to, property.
retention of title agreement
Defined · s 3“retention of title agreement” means an agreement for the sale of goods to a company, being an agreement — (a) which does not constitute a charge on the goods; but (b) under which, if the seller is not paid and the company is wound up, the seller will have priority over all other creditors of the company as respects the goods or any property representing the goods;
security
Defined · s 3“security” means any mortgage, charge, lien or other security interests;
Part
Winding Up of Companies Registered Under Companies Act
Chapter I
Chapter II
Chapter III
Chapter IV
Chapter V
Chapter VI
Chapter VII
Chapter VIII
Chapter IX
Chapter X
Part