Judicial Management PDF

3\. JUDICIAL MANAGEMENT - Judicial management offers the **[prospects of recovery]** for the company or a better realization of assets. - Test for insolvent or likely to become insolvent Crtieria for JM order to be made s89(1)(a) to (c) IRDA - **[Three Statutory purposes]** -...

3\. JUDICIAL MANAGEMENT - Judicial management offers the **[prospects of recovery]** for the company or a better realization of assets. - Test for insolvent or likely to become insolvent Crtieria for JM order to be made s89(1)(a) to (c) IRDA - **[Three Statutory purposes]** - \(a) Judicial Management Proceedings - **[Two- ways]** to place a complay into JM - **[\[1\] Court Application]**: Sections 90 to 92 of the IRDA - - s91 power of the court to appoint the Judicial Manager - s91(4) Notice of Application to be published in gazette - s91(5) - Holder of floating charge to issue notice of application - **[s91(6)]** - JM **[must be dismissed]** if prejudicial to unsecured creditors, unless against public interest exception applies s91(10) IRDA - Public interest exception **[s91(10) IRDA]** - ▪ Re Cosmotron Electronics (Singapore) Pte Ltd - ▪ Re Bintan Lagoon Resort Ltd - s92 Power of Court to appoint interim judicial manager - **[\[2\]]** **[Resolution of Creditors]**: Section 94 of the IRDA - - - - s94(1) - Grounds for obtaining a resolution of creditors for JM - - - - s94(2) - 7 days Notice to Appoint Interim Judicial Manager - s94(3) - Conditions for appointing **[interm]** judicial manager - - - - - - - - s94(4) - Duties and powers of interim judicial manager - - - - s94(5) - Notice of Appointment of interim judicial manager - - - s94(6) - Term of Interim Judicial Manager - - - s94(7) - Creditor\'s Meeting to appoint judicial manager \ - s94(8) - 14 days written notice to creditors and publishing in newspaper - - - - s94(9) - One director must attend - s94(10) - Company secretary to attend the meeting - s94(11) - **[Majority of number and value]** of creditors must approve JM - - - - - - s94(12) - JM must be licensed - s94(13) - **[JM must not be appointed]** - - - - - - - Conditions to satisfy to apply for judicial management: Section 90 of the IRDA - - **[Effect]** of JM - \(i) Aims of Judicial Management - Section 89 of the IRDA - Three purposes of the Judicial Manager - \(b) Administration of Judicial Management - \(i) Effect of filing of application Judicial Management Application and Judicial Management Order - Statutory Moratorium **[s95 IRDA]** - s95 - **[Automatic]** interim moratorium - - - - - - - - s66 - **[Final]** Moratorium - - - - - **[Set-off rights]** still in effect **[s96(5) IRDA]** - ▪ Electro Magnetic (S) Ltd v DBS - ▪ Altus Technology Pte Ltd (under judicial management) v OCBC - Expanded moratorium **[s96(4) IRDA]** - Extension of JM **[s111(3) IRDA]** - Judiucial Manager Powers **[s99 IRDA and first schedule]** - Judicial Manager cannot - Juidical Manager can - Discharge s112 IRDA - Court\'s power to relief Judicial Manager (**[s115 IRDA]**) - Statement of proposals within 90 days **[s107 IRDA]**