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In force2022 Revised Edition
Contents

Part · Judicial Management

49. Protection of interests of creditors and members

(1)

At any time when a judicial management order is in force, a creditor or member of the company may apply to the Court for an order under this section on the ground that —

(a)

the affairs, business and property of the company are being or have been managed by the judicial manager in a manner which is or was unfairly prejudicial to the interests of its creditors or members generally or of some part of its creditors or members (including at least himself) or of a single creditor that represents one-quarter, in value, of the claims against the company; or

(b)

any actual or proposed act or omission of the judicial manager is or would be so prejudicial.

(2)

On an application for an order under this section, the Court may make such order as it thinks fit for giving relief in respect of the matters complained of, or adjourn the hearing conditionally or unconditionally, or make an interim order or any other order that it thinks fit.

(3)

A dissenting creditor shall receive as much under the judicial management as he would receive on a winding up.

Insolvency 62

(4)

Subject to subsection (5), an order under this section may —

(a)

regulate the future management by the judicial manager of the affairs, business and property of the company;

(b)

require the judicial manager to refrain from doing or continuing an act complained of by the applicant or to do an act which the applicant has complained he has omitted to do;

(c)

require the summoning of a meeting of the company’s creditors or members for the purpose of considering such matters as the Court may direct;

(d)

discharge the judicial management order and make such consequential provision as it thinks fit;

(e)

require a dissenting creditor to receive as much under the judicial management as he would receive on a winding up.

(5)

An order under this section shall not prejudice or prevent the implementation of any voluntary arrangement approved under section 12.

(6)

Where the judicial management order is discharged, the judicial manager shall immediately send to the Registrar a copy of the order effecting the discharge.

(7)

A judicial manager who, without reasonable excuse, fails to comply with subsection (6) is guilty of an offence and liable on conviction to a fine not exceeding $5,000, and, in the case of a continuing offence, with a further fine not exceeding $250 for every day or part thereof during which the offence continues after conviction.

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