Insolvency Act · 2022 Revised Edition · Part · Judicial Management
40. Agency and liability for contracts
Official textFrom Attorney General's Chambers, unchanged
The judicial manager of a company shall —
company
“company” means a company incorporated or registered under the Companies Act;
be deemed to be the agent of the company;
be personally liable on any contract, including any contract of employment, entered into or adopted by him in the carrying out of his functions (except in so far as the contract or a notice under subsection (2) otherwise provides); and
be entitled to be indemnified in respect of that liability, and to have his remuneration and expenses defrayed, out of the property of the company which is in his custody or under his control in priority to all other debts, except those subject to a security to which section 39(2) applies.
Where a contract entered into by the company is adopted by the judicial manager, he may, by notice given to the other party, disclaim any personal liability under that contract.
For the purposes of this section, the judicial manager is not to be taken to have adopted a contract entered into by the company by reason of anything done or omitted to be done within 28 days after the making of the judicial management order.
Nothing in this section shall —
limit the right of a judicial manager to seek an indemnity from any other person in respect of contracts entered into by him that are approved by the Court; or
make the judicial manager personally liable for payment of rent under leases held by the company at the time of his appointment.
Terms defined in s 3
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;
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.
security
Defined · s 3“security” means any mortgage, charge, lien or other security interests;
Part
Winding Up of Companies Registered Under Companies Act
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Chapter II
Chapter III
Chapter IV
Chapter V
Chapter VI
Chapter VII
Chapter VIII
Chapter IX
Chapter X
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