Insolvency Act · 2022 Revised Edition · Part · Judicial Management
38. Powers and duties of judicial manager
Official textFrom Attorney General's Chambers, unchanged
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.
property
“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.
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.
The judicial manager of a company shall have powers to —
company
“company” means a company incorporated or registered under the Companies Act;
do all such things as may be necessary for the management of the affairs, business and property of the company;
do all such other things as the Court may by order sanction.
Without prejudice to the generality of subsection (3)(a), the powers conferred by that subsection shall include the powers specified in
Schedule 2.
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.
Court
“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
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 —
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
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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The judicial manager of a company —
may, if he thinks fit, at any time summon a meeting of the company’s creditors; and
shall summon such a meeting if he is directed to do so by the
Court.
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.
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.
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.
Terms defined in s 3
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
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