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PART VIIIA
JUDICIAL MANAGEMENT
Application to Court for a company to be placed under judicial management
and for appointment of a judicial manager
227A. Where a company or where a creditor or creditors of the company consider
that —
(a) the company is or will be unable to pay its debts; and
(b) 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 under section 227B for an order that the
company should be placed under the judicial management of a judicial manager.
[13/87]
Power of Court to make a judicial management order and appoint a judicial
manager
227B. —(1) Where a company or its directors (pursuant to a resolution of its
members or the board of directors) or a creditor or creditors (including any
contingent or prospective creditor or creditors or all or any of those parties,
together or separately), pursuant to section 227A, makes an application (referred to
in this section as an application for a judicial management order) for an order that
the company should be placed under the judicial management of a judicial
manager, the Court may make a judicial management order in relation to the
company if, and only if, —
(a) it is satisfied that the company is or will be unable to pay its debts; and
(b) it considers that the making of the order would be likely to achieve one or more
of the following purposes, namely:
(i) the survival of the company, or the whole or part of its undertaking as a going
concern;
(ii) the approval under section 210 of a compromise or arrangement between the
company and any such persons as are mentioned in that section;
(iii) a more advantageous realisation of the company’s assets would be effected
than on a winding up.
[13/87;42/2005]
(2) Any judicial management order made under subsection (1) shall direct that
during the period in which the order is in force the affairs